Case Study: 33 Norris Street, Warrington, WA2

Overview

33 Norris Street in Warrington, WA2, serves as a prime example of how private investor funds can be utilized to maximize returns on property investments while delivering high-quality results. This project demonstrates a strategic acquisition, efficient refurbishment, and a profitable exit, made possible through collaboration with private investors.

Project Background

The property at 33 Norris Street was identified as a promising opportunity due to its:

Location in a high-demand rental area near Warrington town center.
Potential for refurbishment to significantly increase its value.
Attractive price point that allowed for strong returns on investment.

The property was acquired using private investor funds, enabling a swift purchase and competitive advantage in a busy market.

Funding Strategy

Private investors provided funding through a joint venture agreement, structured as follows:

Investment Amount: £75,000.
Terms: Fixed return of 8% over a 12-month period.

This approach ensured transparency and minimised risk for both parties.

The Process

Acquisition

The property was purchased below market value (£125,000) due to the vendor’s need for a quick sale after a previous sale had fallen through.
Private funds facilitated a cash purchase, expediting the transaction.

Refurbishment

A detailed refurbishment plan was developed to modernize the property while adhering to a strict budget of £25,000.
Key improvements included:

Full redecoration and new flooring.

Fire Doors and regulations

The work was completed within Four months, ensuring the property was ready for market ahead of schedule and ready for re-financing at the 6 month stage.

Results

Return on Investment (ROI):

Investor ROI: 8% over 12 months.
Company ROI: Net profit of £25,000 after costs and investor repayment.

Timeline: The project was completed within 6 months, allowing for a quicker-than-anticipated return to the investors.

Value Added:

Enhanced the property’s appeal in the local market.
Contributed to the regeneration of the neighborhood.

Lessons Learned

Efficient Use of Funds: Leveraging private funds allowed for a fast and flexible approach to both purchase and refurbishment.
Clear Communication: Transparent agreements with investors built trust and ensured a smooth partnership.
Strategic Planning: Careful planning and execution were key to maximizing returns while minimizing risks.

Conclusion

The success of this project underscores the benefits of utilising private investor funds in property development. By combining strategic acquisitions, effective project management, and investor collaboration, we achieved strong financial returns while enhancing the local property market. We look forward to working with this investor and others, in the future.

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