At the moment, my main focus is making sure that the Members Club 2.0 is ready and raring to go (it’s looking really awesome). And of course my wedding is coming up in a few weeks’ time so that’s also been a huge priority…
But, I have also been dabbling in property investment too (after all it’s my bread and butter) and have just this week signed contractors on a JV deal on a property in America.
I thought, whilst I’m in the US a lot I might as well give it a try… so here it is:
It’s a 4 bedroom house in Jersey City, New Jersey. Purchase price $600,000. Renovation $250,000. Expenses of $8,000 real estate tax, $2,000 Property & Liability Insurance, $75,000 in interest + holding costs, agents commission $39,000 (yes you have to pay the agent?!).
All in $974,000 – It’s agreed with the lenders at a set interest… they’ve loaned us $804,000, we’ve put in $170,000 between us. The loan is based on 75% of the end value.
We are going to develop it into two units, the ground floor will be a 2 bedroom 900sq ft apartment. The 2nd & 3rd floor will be a 1,800sq ft duplex – estimated 6 months development and then sell (we’ve budgeted for 12 months in total).
Worst case scenario the sale price should be $1,290,000 so there’s $316,000 profit in it.
I’ve got a 20% share for my first project,
1. because I’ve had to take it out of the UK and
2. because this market moves so damned quickly I can’t transfer the money out of the UK quick enough… it’s been a week from sitting in the first meeting to contracts being signed 😮
3. I have to be honest and say that my accountant and I are really not sure of the tax implications of this, it’s a bit of a work in progress…. but I’m excited to have a project to start working on!
The other good news is that it leaves money in the UK for more investing.
The US market is completely new to me, as I learn more, of course I’ll keep you updated!!
P.S The Waiting List for the Members Club is currently open! If you subscribe now, you will find yourself with some very special bonuses when I launch!! Click Here to join the Waiting List!