Working with us. See what we do and how you could get involved?

At Fuse Property, we carry out both 'buy-to-let' and 'flip' property projects. Choosing which strategy to follow preceded buying the property as the search area and type of property is different between the two strategies. 

While some property investors choose to do either BTL or Flips, many include both types of property investments in their portfolio.

Buy-to-let (BTL) is a long-term venture where the investor buys the property and rent it out. 

The investor benefits from both a monthly cash flow generated by the property rental and an equity growth secondary to the increased price of the property which usually occurs over time. 

BTL falls into the long-term strategy category and is usually less affected by the short-term property market fluctuations. When the market prices drop, the investor does not need to sell the venture cheap and could rather hold into it until the property prices recovers provided that the rental income is still able to cover the costs of running the venture. 

When choosing this strategy, the investor needs to carefully assess the cash flows of the deals and stress test the numbers to ensure they continue to yield a positive cash flow with reasonable margins when the market changes. 

Single-family dwellings, HMOs (houses of multiple occupants e.g., students’ accommodation) and serviced accommodations (holiday lets) are sub-types of this strategy.

Flip is usually a short-term venture (usually 9-18 months). Here the investor adds value to an existing property by refurbishment, extensions and/or change of use (e.g., conversion from commercial use to residential use) and then sell it.

When the venture is chosen and worked out properly, the capital growth of the property surpasses the costs of purchase and refurbishment leaving the investor with profits. The money generated could then be re-invested in another ‘flip’ deal and so forth. 

This strategy is more exposed to property market fluctuations and timing it within the property market cycle is important to maximise the yield.

It is important to mention here that in either of these two strategies, choosing a distressed property (these are usually under-valued) which the investor could fix and renovate usually increases the profit margins. 

In general, we work with our investors on either of two routes (see graph above):

1. Fixed Return

Here, Fuse Property borrows the money from the investor. The money is used to facilitate the acquisition and development of a property. 

The investment is on a ‘loan agreement’ basis for an agreed period. The investor receives an agreed profit (interest) rate which could be paid in monthly instalments or at the end of the contract. 

Fuse Property provides appropriate ‘securities’ to the investor to secure the loan in addition to ‘personal guarantee deeds’ executed by Fuse directors.

This option allows the investor to enjoy a continuous guaranteed profits of their invested money with the option to recall the loan at the end of the term. 

2. Joint Venture

Fuse Property and the ‘investor’ work together on a project as a ‘joint venture’. Both parties contribute to the work undertaken and share the profits and risks of the venture. 

The project could be short term like a ‘flip’ (flip= buy, refurbish then sell) or longer term like a ‘BTL’ (BTL or Buy-to-Let= buy, refurbish and let).

The division of the work and responsibilities in the venture will be agreed based on the investor’s preference.

Profit from the venture is divided based on pre-agreement taken into account the work and finances contributed from each party.

This options allows the investor to partner with us in running the property venture including the associated benefits and risks.