How do we help provide houses?

In order to accomplish this, Pro31 will initially implement two key strategies: Houses of Multiple Occupants and Buy-Refurbish-Refinance. These are outlined below but, in light of the current shift in the mortgage markets’ rates we are assessing what strategy will be best for each area we are working in.

Houses of Multiple Occupants

Otherwise known as an HMO is a house with multiple occupancy. This is when we rent or purchase an entire property and rent out the individual rooms making a monthly profit to cover all of the operating expenses.

Purchase Lease Option (PLO)*

An option to buy a property is written in the lease with the landlord. We rent the property for 3 years with an option to buy at the end of the lease. This means that we have use of the property for 3 years, with a fixed price at the current market value. We turn it into an HMO making a profit for the next 3 years, all the while the property likely increases in equity. At the end of the 3 years we have the option to buy the property or return the property to the owner. Our goal is to build a portfolio of property over the coming years. The profit generated would be used to fund the purchase of more properties and 10% would be allocated for charitable giving.

*more information on PLO click here

Buy-Refurbish-Refinance (BRR)

In this strategy we will be buying homes outright with capital raised from investors or through donated funds. These properties will then be refurbished to a good standard to then be evaluated for a mortgage which we hope will be above what we bought the property for. Thus a percentage of the profits will return to the capital investor with the refinancing. The property could then be sold or rented by Pro31 to pay off the mortgage.