How it Works
Our experienced team of property negotiators acquire properties on behalf of Colonial Capital Group PLC’s Social Housing Bond, direct from U.S. Banks and U.S.
Government-sponsored entities (Organisations such as Fannie Mae and Freddie Mac.) via Foreclosure sales. These are typically two – four unit multi-dwelling houses in Chicago.
After a complete refurbishment we lease these properties to U.S. families under the Housing Choice Voucher (HCV) Programme, formerly known as Section 8. This allows Colonial Capital Group PLC to achieve high rental yields that are paid and underwritten by the U.S.
Government. The properties are then managed and maintained by a professional property management company. In some cases we may sell a portion of our portfolio to help accelerate growth and use leverage where appropriate.
There is a minimum initial investment of £10,000 and subsequent purchases can be made at £1,000. The returns are as follows:
2 Year SHB – 12% p.a. – 100% end of term redemption
The first interest payment date is six months after the final date of subscription, with interest calculated on a daily basis from the date of investment.
The Investment Strategy
We focus on multi-unit dwellings which consist of between two – four apartments and all properties are purchased direct from U.S. banks or via foreclosure sales and are refurbished to a high standard, which includes new kitchens, bathrooms, windows and wooden floors.
The yields achieved deliver the interest payment to the Bond investors while allowing Colonial Capital Group PLC to acquire more properties.
Throughout the fixed three year term, each property is professionally managed to maximise the returns and protect the investment. This includes a mixed strategy of buy & hold, buy & sell at the most appropriate times.
The table below shows the Housing & Urban Development (HUD) Department’s agreed rent payable in Chicago for 2016.