FREQUENTLY ASKED QUESTIONS
See what we do for investors in 1 minute
- How it works?
- Property sourcing
- Mortgages and finance
- Refurbishment
- Lettings and Management
- As a client of PPB
- Due diligence
- Refurbishment photos
How it works?
How does Platinum Portfolio Builder work?
We have built a simple animated video which explains how PPB works. Simply click here to view this.
Who is Platinum Portfolio Builder suitable for?
We have a wide range of clients including the Chairman of Aegon, 2 Harley Street Doctors, business owners, civil servants, accountants, school teachers, lots of ex-pats and many more.
In short, PPB is for anyone that wants to invest into UK property at this opportune time but who does not have the time, skill or inclination to do it themselves.
How much does it cost to invest in Platinum Portfolio Builder?
We work with clients who invest between 75k and 500k.
At the 75k level this is split into 2 parts:
- A fee of 33,333 plus VAT = 40k.
This fee generates a minimum of 60k of equity within your portfolio. - Working capital of 35k.
The working capital is returned in full after the last re finance.
Other investment levels are available for people who want to accelerate their portfolios much more quickly or who want to build larger portfolios.
Are there any advantages if I want to invest more than the 75k?
Yes:
- A quicker delivery of your portfolio.
- A reduced lettings and management charge for any client that does more than one PPB.
- HMO’s (Houses of Multiple Occupation) can become part of your portfolio – these generally have a gross yield of between 15-20% and much better cashflow.
- Priority access to buy and sell type deals.
What do I get for my investment?
You get a team of experienced buyers, negotiators, builder and lettings managers that have a track record of buying below market value property, renovating and renting it out on your behalf. It covers referral fees, marketing and other costs that you would have to bear yourself if you were to do below market value purchasing for yourself.
Why do you require working capital of £35,000?
This is to fund deposits, refurbishment costs and legal fees. The working capital is returned to you in full after the last house is re financed.
Can I provide more working capital to speed up the process?
Yes, some of our investors increase the amount of working capital they provide to speed up the acquisition process.
When is my working capital returned?
After the last house is refinanced. Typically within 36 months after the start of the investment.
Is this a get rich quick scheme?
No you need to look at this as a medium to long term investment. We believe that the property market will be flat for the next 3-5 years but it’s the property that you buy now that will significantly increase in value over the medium to long term.
Some of our investors do however sell to release the equity back to them and you always have the choice to do this.
Is this No Money Down deal?
No. We do not support no money down deals as in doing this you will be committing mortgage fraud. All our properties are purchased using full funds for deposits.
Sounds too good to be true?
This is a completely ethical and lawful investment with all compliance matters handled by us on your behalf. You are free to visit us in Yorkshire where you can see for yourself.
Property sourcing
How can you buy property at such a discount?
We offer a service to vendors where time is more important than money. We spend a lot of time and money on our “Need to Sell Quick” brand and we have a proven track record of being able to agree a sale rapidly. For example we can make an offer within 24 hours, exchange within 10 days and complete within 28 days.
We buy from direct sellers, estate agents, direct from banks, receivers, builders and auctions.
Are you taking advantage of people that cannot afford to remain in their home?
This is a valid concern but we only negotiate deals where it is a win-win situation for us and the vendor. Often we are helping people where time to sell is more important than price. The fact is houses are repossessed by lenders and builders do run into finance problems with their lenders and we provide an alternative option for these situations.
We also buy where the reason for selling is simply that the vendor wants to buy onwards and our purchase puts them in the market as a cash buyer.
Can’t I do below market value purchasing on my own without paying your fees?
Yes you can but you need to be aware of the time, skill and cost to do this yourself. Our Founder Nick Carlile has been investing in this way since 1993.
We hope that our track record, support system and the market we are buying in shows you that letting us do this on your behalf is an attractive alternative.
The best way to answer this question is to come and see us for an exploratory visit where you will be able to meet the team, view properties and see some of the systems that we use to achieve what we do.
Who sources the properties you offer to your clients?
We have some of the finest property buyers in the UK who have a very stringent filter that properties must meet before they go to our Operations Director for final approval. Only the properties with the strongest fundamentals are left before final approval is given.
Can I choose the houses that you buy for me?
Yes, we give you details of a number of properties for you to choose.
You can always say NO to any property which we offer to you and you don’t even have to give us a reason.
Can I see the property before you buy it for me?
Yes, we positively encourage our investors to visit us in Yorkshire to meet the team and look at existing and new properties.
How much do these houses cost?
Our average property will cost 60k including refurb and legal’s costs. This average property would be valued at 80k.
Mortgages and finance
How can you buy houses for such a small investment?
We use leverage by taking out mortgages on the properties. Once fully refinanced and all your working capital is pulled back out the return on investment as your equity grows is very good.
Can I buy for cash & not take out a mortgage?
You can and some clients do but the return on investment will be much lower and we could buy several houses for the same amount using leverage.
Do I have to get mortgages?
Yes you need to fill in mortgage applications but an independent mortgage advisor will provide you with full support in doing this.
I am nervous about taking out mortgages
This is understandable especially if you are fortunate enough to be mortgage free. Using the leverage of mortgages is the best way to get returns on investment where the cost of the mortgage is more than covered by rental income.
By using mortgages you are able to increase your portfolio size by almost 4 times over using just cash.
This means that if you have 100k to invest and buy for cash a 5% increase in the property market will give you £5,000 gain – a 5% ROI.
Using leverage the same 100k can be used to buy 400k of property. This means that the same 5% growth will give you a £20,000 gain – a 20% ROI.
By using PPB you are able to buy around 320k of property using just 40k. This means that the same 5% growth will give you a £16,000 gain – a 40% ROI.
*ROI = Return on Investment and is a % that is calculated by dividing the amount of annual gain over the amount of funds invested.
I know it makes financial sense to buy property with a mortgage but I would still be nervous.
We realise that buying property is a big emotional step in anyone’s life so as well as building your property portfolio our experienced staff here at PPB will also help you with any other issues or concerns. Our staff are always on hand to answer any concern you may have.
You can, of course if you wish to, buy without using mortgages – this is ultimately your choice.
What if interest rates go up?
This a good question because interest rates are at an all time low. This is however just the Bank of England base rate and this has no current link to mortgage rates. It is expected that as the base rate rises the cost of mortgages may stay constant with the banks ‘soaking up’ some of the increase by reducing their margins.
You can also take out fixed rates of interest on all your mortgages.
Why does it take 6 months before we can refinance?
These are the rules set down by the mortgage companies and they can’t be avoided.
Refurbishment
What standard do you refurbish the property to?
We refurbish your property to a very high standard to ensure your tenant is happy renting. Typically we will add between £1.50 and £2.00 for every £1.00 spent on refurbishment.
We have shown below some before and after images from just some of our refurbishments at the end of these FAQ’s.
Where do the costs of refurbishment fall into the headline figures above – are they part of the fee paid?
The cost of refurbishment is paid from the working capital and is not an extra fee.
How do I know that the property is refurbished to a good standard?
Our expert builders take before and after pictures throughout the refurbishment and send these to you. You are also welcome to visit at any time.
We are also incentivised to ensure the refurbishment is to a high standard to ensure that the property is rented out.
If the property is not rented out you do not pay us the lettings and management fee – this is just another area where we have ‘skin in the game’.
Lettings and Management
Do you charge a management fee for renting the properties?
Yes we charge 10% of the gross rent for our comprehensive lettings service. You receive monthly statements form us. If we don’t collect rent then you don’t pay a management charge.
It’s another example of us having ‘skin in the game’
Do you charge for finding a tenant for my property?
No, unlike many other management companies who charge a large fee we do not charge extra for this. Our lettings and management is all inclusive service.
We also do not charge for inventories, check-in and check-outs or referencing for the tenants.
This can save you a lot of money as many agents will charge a full months rent for finding you a tenant.
Do you charge for taking inventory or other services relating to when a tenant is changed?
No, as a client of ours we try and keep your monthly cash flow undisrupted.
How much rent will be charged?
On average the rental income from these properties is £450 per month. Based on a purchase price of 60k this equates to a gross yield of 9% yield.
The national average on yield is around 4%.
What if you cannot find me a tenant?
There is an overwhelming demand for rented property and our occupancy rates are close to 100%. There is a 6 year waiting list for affordable housing in Barnsley alone. This council has a 9,000 waiting list for its stock of just 19,000 houses.
We are so confident in our ability to rent your properties that if your property is void for more than 6 weeks consecutively at any stage during the first two years from completion (excluding the planned refurbishment at the start) we will pay the mortgage for you for that period.
What if the house needs work to be carried out during the tenancy?
We manage refurbishment and all maintenance once the house is rented out on your behalf. The rental income usually covers the maintenance on the properties and don’t forget that most of the properties are fully refurbished before we let them out.
Can I see the accounts for an example property purchase and also the profit and loss once the property has been let?
Yes- we have a number of examples that we can send to you.
Who insures my property and who pays for it?
The insurance premium is covered by the rental income.
We insure your properties on your behalf. This comes under a block policy which insures all of PPB properties and those of Nick Carlile as well.
This means that you make a significant saving from the normal cost of insurance.
As a client of PPB
How can you monitor the built in equity?
We only purchase property that is discounted by a minimum of 25% below surveyed value as verified by a RICS survey a copy of which we will provide to you.
You can also instruct your own surveyor should you wish to.
I am not an expert with money matters do you help your clients with their finances?
Here at PPB we have a wealth of experience and some external advisors that can assist you in all areas of wealth management, tax planning, protection, pension planning etc.
What happens after I have my initial portfolio?
We have an ongoing commitment to you, our client to ensure we maximize your gains for your financial future. We review your portfolio on a regular basis so that we can give you our best advice on what to do next.
Due Diligence
Can I have a copy of the PPB Agreement to review?
Yes we can provide a draft copy of the Agreement upon request.
How exactly is the working capital ring-fenced from PPB’s assets?
This is a good question. The working capital is held in a separate bank account which is completely separate from the PPB business. You can withdraw your funds or request a statement of all transactions for your working capital at anytime.
Your working capital is always either in the properties that you own, or the separate bank account or a combination of the two.
Can I speak to other clients?
Of course – just ask us for details of some of our clients.
How am I kept informed of how my portfolio is performing?
You will receive a monthly statement for each property showing the rental income and expenditure (if any).
During refurbishment you will receive regular progress photos.
You will also receive a full report on a quarterly basis that shows the full details of your portfolio and what the next steps are.
I understand that the creation of the typical property portfolio takes on average 36 months. Is there any comfort as to when it will be completed?
It takes on average 1 month to purchase then 6 months before we can re-finance so 7 months per property times 4 properties takes 28 months. We normally contract with you for 36 months.
There are very clear penalties that are enforceable by you in the event that we miss the deadline
What if I have a concern or query?
You have full access to every member of the team throughout the entire process and we keep you informed of their direct dial and mobile numbers.
You also have direct access to Nick Carlile the Founder of PPB should you need it.
In addition to this we give you your own dedicated email address where you can raise any issues at all. Whilst this is reserved for none day to day issues we promise to answer this within 1 working day.
Would I be welcome to visit your offices in South Yorkshire?
You are welcome to visit us at the office at any time. This allows you to see a selection of properties before purchase or during and after refurbishment, meet the team and examine some of the systems that we use to deliver the PPB product.
What are the next steps to get this all moving? I understand that I need to be ‘vetted’ so how does that work?
We need to make sure you understand the agreement and the process and have the available funds to proceed and that you and your partner are happy to proceed. The next best step is almost always for you to visit us in our office in Yorkshire.
Refurbishment photos
Just a few examples of before and after refurbishment pictures:
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