A new PropTech platform aiming to turn rundown properties into cash-flowing investments has been launched.
Revive-to-Rent, a new property investment category from Dot Residential that focusses on improving the standard of UK rental housing stock, hopes to attract investors by offering the opportunity to acquire, finance and improve properties on a turnkey basis online.
Dot Residential is aiming to deliver immediate ROI for investors by using data analytics to filter and isolate value-add projects.
Dot estimates that it will deliver investors with a 25-50% initial return on equity from its refurbishment work, with ongoing leveraged net yields of between 7-10% once the property is tenanted.
Investors are required to contribute a minimum 25% deposit, with Dot advancing a 75% ‘Revive-to-Rent’ loan to cover the balance and refurbishment costs.
Dot pre-approves all listed properties for finance as part of its feasibility and underwriting process so investors can act quickly to snap up the best opportunities.
Gray Stern, CEO and founder of Dot Residential, commented: “Tired, unloved properties in our major cities present an exciting investment opportunity. They are typically far better value, more spacious and have more character than new-build stock and, in addition to boasting sound investment fundamentals, provide an opportunity to generate immediate upside through the addition of Dot’s smart design templates.
“Our goal is to deliver double-digit returns in year one, followed by strong ongoing net income from your Dot tenanted asset.
“One of our Revive-to-Rent™ case studies has seen a £16,500 valuation uplift for the investor in a two-week time-frame, who has subsequently received an offer that will crystallise a £22,000 profit.”