Just this past week we have spent a very exciting time with Empire Property Concepts at their head office in Doncaster.
As part of our commitment to only offer the very best investment opportunities, we value the concept of meeting our developers on a regular basis, as we have over the last four years learnt a regular flow of information between the developer, agent and the investor makes for a successful team and a good way of giving real feedback to our clients and potential investors.
Paul Rothwell, owner of Empire Property Concepts began refurbishing property some 13 years ago. The idea initially started 13 years ago with a £15,000 loan from his father, he went out and bought his first property in Nottingham converting the basement into a bedroom and renting out the other rooms to students.
The business grew thanks to the strategy of re-mortgaging a current property once the refurbishment had taken place, he would then extract the cash and use it as a deposit for the next one.
The key to his strategy is staying away from cities like London, Manchester and Birmingham as property prices are expensive in comparison to rents – we have all seen London prices but rental yields are not in keeping with price increases.
A substantial part of the Empire Property Concepts strategy is to buy up commercial property and then convert them into studios and 1 bed properties.
Empire House – Doncaster
The building you can see in the picture above is called Empire House.
Up until the point of Empire Property Concepts acquiring the building it was an empty office block that was the former home to an HMRC Tax Office, the building is structurally solid and was purchased for £455,000.
We all agreed that £455,000 could not build a building like this!
In came Empire Property Concepts and they completed the conversion from office block to 24 self-contained studios over a 9-month period. In addition to the studios there are four commercial units on the ground floor, one of those is taken by Empire Property Concepts as their head office.
There was an average cost of £30,000 refurbishment per studio bringing total costs including interest to £1,250,000
Once the refurbishment / conversion was complete the company recoups its investment and consequently the building was valued – this came in at £1,960,000
It is at this stage the company would go to the bank and refinance, using the capital created to do further projects. The studios let for £125 per week inclusive of all bills, this equates to a maximum of £156,000 per annum in rental income along with a maximum of £40,000 in commercial rental income.
Using this strategy, you can see why Empire Property Concepts have only sold 1 property in the last 13 years! There is a far better ROI to be had from re-mortgaging already refurbished property versus taking on a mortgage to purchase and then refurbish a property.
The portfolio is focussed mainly on Studios and 1 bedroom flats and often they come fully inclusive of utilities included in the rental price.
360° Virtual Reality – Studio Flat in Doncaster
Empire Property Concepts are currently on track to convert 200 units in the last twelve months. This figure is increasing thanks to the Loan Note Investment that has since been made available to client of FJP.
Investors are able to purchase loan notes as part of the property bonds issued by Empire Property Concepts. Using the same strategy that has built this £33 Million property empire over the last 13 years, you will make use of their contacts as they will invest your money in refurbishment projects throughout the North of England, you will then earn an income on your investment starting at 10% per annum.
The great thing about investing in property bonds, is that you are able to achieve significant returns by virtue of being invested in large scale refurbishment projects that you simply couldn’t do on your own, unless you were investing larger sums of money.
Investment is open to UK and Overseas property investors with the entry level starting at just £20,000