Archive for November, 2009

Boscombe Property Refurbishments, Recommended Builders Bournemouth

Monday, November 23rd, 2009

Four Corners Properties are well underway with the next of many refurbishments this one being in the heart of ~Boscombe we are stripping back all walls of the old retro 70’s paper & preparing it ready for the demolition & reconstruction  for the sunami team of builders to bring this property back to it’s real wanted life.. we estimate this property to be ready by mid Jan with all new fixture & fittings to be seen on the main website real soon… this will be a intresting refurb at a great budget..!!  If you are buying & would like us to give you great advice where to maximise your profits in buying a new property then please call us local builders in Bournemouth to help you every step of the way,,

USA Property Investment News

Wednesday, November 18th, 2009

USA Investments update 17th November 2009

Following previous information here is the final position. Covered in this note are the following
points.

1. The strategy; ownership/tax
2. Examples of acquisitions – previously sent information
3. Research on the area and the business case.

Background

Having acquired a detached property in Wayne County, Michigan, USA for £12,000 and spent £6,000
refurbishing, it is now rented out yielding 20%+ net. We are now looking to acquire further
properties and inviting investors to help us exploit bulk acquisitions. We have a good team of
property professionals in place to support future acquisitions and ongoing maintenance. We know
which geographical areas to focus on.

We are planning to rent the properties to a mixture of both private and government backed tenants.
Properties have to pass County standards prior to rental and we purchase properties that need
minor works (decor/carpets/kitchens etc) to meet those standards. We’re proposing to carry out
necessary works to ensure they reach this required standard for the rental permit. Rental demand is
high due to lack of credit and this is one of the main reasons for discounts of up to 80% of previous
selling prices (these discounts are disappearing fast). The yields are exceptionally high and market
recovery would deliver potentially strong capital growth.

Wayne County, Michigan

Wayne is in Southern Michigan and has been singled out for significant inward investment as you
can see below.

usa-investment-summary2-171109pdf-adobe-readerusa-investment-summary2-171109pdf-adobe-reader1

 

Applications for the TURBO program due Dec. 4

Source: Wayne County Land Bank, 10/30/2009

Although there are several different land banks operating in the State of Michigan, only the Wayne County Land Bank has transformed the revenue derived from the traditional land bank model into an economic incentive for developers who invest in Wayne County.

Wayne County’s TURBO Program (Transforming Underdeveloped Residential and Business Opportunities) provides meaningful financial incentives to private property owners who develop or rehabilitate unproductive land within the County. This program, offered exclusively through the Wayne County Land Bank, has only been in operation since 2006. In three years, it has helped spark more than $400 million in new investment in Wayne County and created more than 3,000 new jobs.

Under the TURBO Program, an investor may receive up to:

  • One year tax exemption during the year of construction +
  • 50% reimbursement of an amount equal to the real property taxes for 5 years (i.e., partial reimbursement for improvements made to the property)


This year’s deadline to submit TURBO applications is DEC. 4, 2009.

This year’s deadline to close is DEC. 16, 2009.

For more information about the TURBO Program, please visit www.waynecounty.com/landbank.

Acquisition strategy going forward;

 

Collective acquisitions seem the preferred route with shared risk/reward. A mixture of high
yield/low value or higher value slightly lower yield properties with better growth potential are our
target.

An American based company and bank account is now set up and we are planning to acquire
properties in this company name. Shareholders agreements for all investors will be in place detailing
% holdings, returns and exit options – all will be pro-rata. Exit options will be share sales to fellow
directors or property sales to repay % investment. So for example, if an investor owned 10% of the
company and wanted money re-paid for any reason, shares would be offered to other directors first
and if no sale was forthcoming, a proportion of the portfolio would be sold to repay the investor.

Generally we’ll encourage dividends to be re-invested if suitable investment opportunities arise.
Should any investors require the dividends they would of course be paid. Remaining investors would
acquire future properties in a newco.

Acquisition funds will be held in an ESCROW account prior to completion.

Freehold title will always be purchased and below you’ll see the tax regime.

Taxation generally;

Capital Gain (1) on the sale of property held for more than 12 months would be taxed at 15%. Net
rental income or gain from the sale of property owned less than 12 months would be taxed at
ordinary income tax rates for individual members of a company and at corporate income tax rates
for a traditional corporation. The number of properties won’t impact the rate of income tax but
there is

Real Estate Taxes (2) assessed against each property which is different from the tax on
income (profit) this is like rates in the UK.
For properties we’re considering the annual real estate tax will be from $1,500 to 3,500. This
expense is deductible from income and is factored into our net projections.

Tax base and rates

Corporate “Income” Tax (3) is not a tax on corporate income. It would be more accurate to call it a
corporate “profit” tax. Corporate “taxable income” is that which remains after most business
expenses have been deducted.

For regular income tax purposes, a system of graduated marginal tax rates is applied to “taxable
income.” For 2008, the marginal tax rate on a corporation’s taxable income was as follows:

The effect of the marginal rate structure outlined above is to average out the lower marginal rates
applied to the taxable income falling in the lower brackets, producing a flat tax rate of 35 percent on
a corporation’s entire taxable income once the corporation’s taxable income exceeds $18.33 million.

FAQ

Are these properties free from debts and liens/covenants?

Yes, all properties will have had any liens and debts cleared during our due diligence process.

Why are these levels of discount available?

The answer is public money. The banks can afford to write off mortgages of $70-$100,000 and more
which were typically held on these houses because billions of government money is being poured in
to their economy. In short, the American government is subsidising our investment

What is the impact of rising un-employment?

Job losses throughout America have been an increasing problem but as you can see above
substantial investment is planned For those that earn under the median income or who are
struggling financially, the government has put in place the Section 8 scheme. We are targeting good
locations that are located close to employment centres such as hospitals, the local universities etc
broadening our tenant pool.

What about Michigan Golf?

Few areas in the world have such a massive amount of quality golf as in northern Michigan.
Please check;

www.michigangolf.com

www.michigan.org/things-to-do/golf/default.aspx (more…)

HMO Landlord Safety Services

Friday, November 6th, 2009

Four Corners Properties offer the services to all landlords to bring there property to current regualtions for all properties with house of multiple occupancy.  We provide all fire regulations with new fire doors with intumescent strips & dead locking door sytems with self closuers so tenants can evacuate the property in an emergency… Also we can provide the property with all hot & cold feeds for sinks in bedrooms & make all rooms that need to be fire resistant.  Please call us if you would like any advise on making your property to HMO standards..

Loft Conversions & Extensions South Coast

Friday, November 6th, 2009

Four Corners Properties are full steam ahead on a project working for a local family in the Highcliff area of Dorset,  We are also building there single story extension to give them maximum living arrangements through out there new home.  The family have recently moved into this property.  They have found us through the Google search engines.. upon navigating our website & seeing what we have to offer as a local building company in Bournemouth, they called upon us & took some strong advice on what works can be done for there new family home.  We started  work 3weeks ago & are in the full swing of things.

Please go to our main page & see new photos being updated every day & to navigate our website for all our past projects.  For photos of this project hit the Walkford Loft for fresh images…

Many more projects coming very soon