Frequently Asked Questions

How do I know that I won’t overpay for the property?

Because we will get a local valuer to give us an opinion on value or have a mortgage valuation if a loan is being taken out. We will also be making the usual enquiries with local agents and doing other online research.

How do I know I won’t overpay for the building works?

Because we will have a professionally qualified project manager such as a surveyor or architect to approve the home improvement contract and check the work has been finished as agreed.

How many transactions am I committed to?

You have to provide the agreed funding for 12 months. We agree the target number of transactions we intend to undertake but not less than two. If a transaction is not yet concluded but commenced within the period then you receive repayment of monies due as soon as the transaction concludes by way of sale. You can continue to invest your funds in further transactions if you are satisfied and wish to do so.

But what if I just want to rent the property out after the works are finished?

That’s also absolutely fine. If that is your objective you tell us and we will arrange for a local letting agent to rent the property out and at that point you pay for the building works on the commencement of the first letting. If that is your objective the cost of the building works is held in an escrow account and is released on a certificate by the project manager that the works have been finished as agreed.

Do you arrange a rent guarantee?

Yes, Canfields Law will give you a 7% per annum gross rent guarantee for three years provided you instruct them to handle the lettings and management in that period.

Do Canfields Law have any experience in renting and management?

Yes they do, and on a UK-wide basis. Two of the directors and a senior consultant have managed substantial rental portfolios in the past including undertaking all legal matters that arise. They have had over 15 years’ experience doing this. The senior consultant was a Managing Director of one of the largest property managers of residential property in the UK for over 10 years and Canfields Law will also handle all the legal documentation, rent collection and legal matters arising within their fees.

Where do you buy the property and what type of property is it?

We only buy freehold properties consisting of small houses in the £60,000 - £120,000 price range, unless otherwise agreed. These properties will need refurbishing. Such properties are available in many different locations in the UK.

How are you motivated to get me the best price?

We need to get good prices on purchase and sale to encourage you to continue using us. We need to be confident on the buying price to make sure the building contract is covered if you are selling, or to ensure the best yield if a rental guarantee is being provided by Canfields Law. Because we are professionals who do our utmost to look after our clients.

Do you take any security to make sure you get paid?

No we don’t take any mortgage over any property but we require the appointed lawyer to give us an undertaking that they are irrevocably instructed and will pay us at completion from the net sale proceeds after you have first received your capital back.

Do you hold any of my money?

No we don’t. The money is held by your lawyers subject to an undertaking in our favour as described.

Can I choose the property or location?

Of course you can. But if you do then we cannot offer the price promise or rent guarantee. And we must be paid in the normal way for the building works and the lawyers may not defer their fees.

How do I know you won’t undersell my property?

Because we are professional agents and we will make all appropriate enquiries on the best selling price from several sources and then obtain a third party opinion that we are achieving the best price reasonably obtainable on sale.

How can I trust you?

Because you are instructing a team with great experience. We are not a “one man band”. We never hold your money and are working to a clearly defined business plan. You are entering into short-term transactions with us and you can consult any other professional adviser as you wish and we are happy to liaise with them.

Are you just a start-up business?

No we are not. Whilst this is a new company the team have vast experience in buying and selling property and related property services. They have put together what they regard as a novel method of working with property buyers and the company is set up to make this a success.

What is the minimum and maximum investment?

The minimum is £25,000 and there is no maximum. The minimum property price means that if you invest under £50,000 you will have to be a shareholder in an SPV (special-purpose vehicle) with one or more other persons up to a maximum of five persons in the company. There is a standard set of legal documents to execute and the SPV becomes the owner of the property and all sales proceeds are paid to it. We will manage the SPV up to the point of sale. For more information go to our section on SPVs.

Can I choose my own lawyer?

Yes of course. Any lawyer we nominate will have agreed fixed fees with us and agreed to defer those fees, both on buying and selling, until the sale or rental of the property and if the sale is abortive they have agreed only to charge their out-of-pocket expenses.

Can I pull out of the plan early?

No you cannot do this once you have agreed to participate and handed over your funding as it would make running the Plan impossible since commitments would have been undertaken. However, if you do not make a profit on your first or subsequent transaction then of course, you can pull out if you want. That is part of our incentive to make sure that does not happen.

Who supervises the building works?

A professionally qualified surveyor or architect will approve and sign off the works.

What if I make a loss?

As we said, we will be highly incentivised to make sure that does not happen and you have the stop-loss arrangements. If despite this you lose any of your investment you may if you wish exit the Plan.

Can I visit the property whilst the works are being carried out?

Yes, of course, by appointment. But the building team will only take instructions from us and you must not hold up their works which are intended to be completed as quickly as possible.

How does the SPV work?

Please refer to the section on the website for more details.

Is this too good to be true?

It is true. It is not for us to comment on whether it is too good! If you invest you will soon find out.

We cannot make financial forecasts as to outcome. The target is to make you a minimum 10% to 20% profit per transaction and to achieve that 2 to 4 times a year depending on the market. We emphasise it is a target not a guarantee. The way we look at it is this: if we just achieve the lowest target twice a year we think it beats other things you can do with your money with the same risk profile. And if you end up renting we expect you to see a good yield.

Why do you want to offer such a good deal?

It’s for you to decide how good it is. Our objective is to grow our business and by showing we can make you money and by putting our “skin in the game” our interests are jointly aligned. We can only make it if you don’t lose! That promise does not apply to many other investment opportunities!

Can I meet you?

Of course. We can meet you face-to-face, on Skype, or talk by phone.

What could go wrong?

There is always a long list of risk factors. These are known risks and unknown risks. For instance, market conditions can change. There might be unexpected problems such as a seller may fail to complete a sale, a buyer might fail to complete a purchase, a loan may not come through. All the usual business risks are there. But these risks exist in almost all property transactions. Because these risks exist we have worked out a method to reduce them and make investing a much more attractive proposition particularly for persons with limited capital.

How many properties can you take on at any time?

Not an unlimited number! Therefore, it is very much a first come first served opportunity. We will only take on a limited number so we can maintain the service we want to provide.

Have you really asked all the possible questions?

No. There must be others. But we’ve tried to think of all the obvious and non-obvious questions you might wish to raise and we haven’t ducked any difficult ones because we want to be as transparent as possible. If you have any questions we haven’t answered then we will gladly answer them and add them to this list.

Should I get independent advice?

Absolutely. We are pleased to answer any reasonable questions from anyone advising you.

How do I know you will not do special deals with your friends or others at my expense?

Because we are, as we said, a team of professionals who have worked with and for clients in different capacities for many years. No business could survive unless it was conducted completely above board and the questions and answers show you clearly that will be the case. We want to make money but not at your expense.

What are the Agency Fees?

25% for finding a suitable property and 2.5% on a sale including all sub-agents fees.

What are the Legal Fees?

£750 each transaction deferred as above.

What other fees are there?

The surveyor or architect fees but these will be part of the cost of the building project.

Who decides the cost of the works?

We do, based on achieving a targeted outcome. We will work on the basis of spending up to 30% of the purchase cost on refurbishment works.

Do I pay VAT?

Yes all of these fees carry VAT.

Who deals with the insurance?

We do, but if you wish to take responsibility then that may be possible. We will also deal with any insurance needed to cover the building works.

Will you work with any buyer who has the money to invest?

No. We have a Registration Form and we want to speak to you in detail before we accept you to make sure you fully understand the Plan.

What about loans? What do they cost?

Loan funding can be provided as part of the funding package. Either you arrange it yourself or we can introduce a specialist finance broker.

Do I need an accountant? What about the tax?

It would be sensible to have an accountant to keep your records and deal with any taxation aspects. We can introduce an accountant if you need.

What are the team’s qualifications?

The team consists of qualified professionals or contractors with a minimum period of at least 10 years in practice in their specialist field. (See team profiles.)

Do I have a Client Relationship Manager?

Yes you will have a specific person you can call up any time for updates or to ask questions.

Is there a registration fee?

£100 to cover administration costs.

Can I refer people to you? Do you pay a referral fee?

Of course. We would discuss referral fees which need to be disclosed.

Are there any other special features you include?

There are possible opportunities on the finance that you can get depending on your circumstances. The potential to secure finance within 7 working days No upper age limit Joint ventures for individuals, limited companies, sole traders and partnerships and trusts