IFISA

Ziphouse prides itself on being different. We have a team who really care.

Company overview

Ziphouse Limited was established in August 2016 as a property firm. Ziphouse’s mission is to be the mainstay player in the property market.

Ziphouse was originally established with the intention to become a leading UK property firm, focused on acquisition and development in the property market for redevelopment and high yielding rentals.

Acquiring properties is vital for economic activity; all properties we aim to acquire are a proven need for future demand and are located in rising underdeveloped areas with limited competition within the market. Ziphouse is seeking to create a diverse portfolio of value-added property assets, including partially completed construction projects and completed properties for rent, as well as occupied buy-to-let properties and those that can be converted into HMOs. The portfolio will comprise direct holdings of property assets, as well as development projects. The focus will be primarily on the United Kingdom in high growth and regeneration areas.

It is important to highlight most properties that Ziphouse purchases will be at least 15-20% under the current market value and some with even more margin for profit. Ziphouse will not only be acquiring undervalued properties to simply purchase, improve, and then sell, but we will build a large portfolio to profit from both capital appreciation and rental income. There will be no limit on the number of properties or investments into which the company may invest, and the company’s financial resources may be invested in a number of opportunities allowing diversification.

We believe long-term sustainable returns can be achieved by acquiring below market value properties with strong rental demand with zero bank financing. Cash purchases will aim to mitigate risk and permit yield returns from day one, ensuring that the company has stronger than average revenues with predictable cash flow. Ziphouse has extensive experience within this market place and is positioned to provide comprehensive services in facilities management and marketing skills in these property sectors.

The Offer

Minimum Investment:

£2,000

Interest Rate:

6% due quarterly

Investment Type

Loan Note, available through an IFISA

Interest Payment Date:

On 30th June 2021 then quarterly thereafter on 30 th September, and 31st December each year for the Loan Note

Security:

The Security will be a charge over the assets of the Company

Security Trustee:

Oxford Business Services Limited

For every £100 you invest, £15 will be paid to third parties to meet costs, fees charges and commissions

Example Return on Investment of £100,000 GBP

Term:

36 Months

Total Initial Investment:

£100,000 GBP

Interest Per Annum:

6%

Total Interest Over Term:

18%

Total Quarterly Interest:

£1,500 GBP

Total Interest Payable:

£18,000 GBP

Total Capital Repayment:

£100,000 GBP

Total Funds Returned to Investor:

£118,000 GBP

For every £100 you invest, £15 will be paid to third parties to meet costs, fees charges and commissions

Please note forecasts are not a reliable indicator of future performance.

Bond Offering

The Company is undertaking to issue corporate loan notes to eligible investors to raise up to £2,000, 000. The company is offering the opportunity to investors to subscribe for the loan notes with a minimum investment of £2,000. There will be a three year loan note repayable in 2024 to pay interest at a rate of 6 per annum.

The redemption of the loan notes and the interest payable on them are to be funded from the profits generated by the Company’s Operational Strategy, using the Net Proceeds of the Loan Notes issued. The Company believes that sufficient profits will be created to fund interest on and redemption of the Loan Notes.

The Risks

Please see the key risks in respect of the Company, the Loan note and the ISA. You must read all material risks on the Information Memorandum in full before investing.

Lack of Profit

There can be no assurance that the Company will achieve its objectives or that its strategy will be successful. There exists a possibility that an investor could suffer because of the inability of the Company to pay interest and to repay capital.

Unforeseen Events

The Company’s strategies are designed to be relatively non-correlated with respect to the movements in property markets in general. Notwithstanding, the Company may be adversely affected by unforeseen events involving such matters as political crises, changes in currency exchange rates, or interest rates.

Risks Related to the Loan Notes

An investment in the Loan Notes involves certain risks associated with the characteristics, specification and type of the Loan Notes which could lead to substantial losses which Noteholders would have to bear in the case of selling their Loan Notes or regarding receiving interest payments and repayment of principal.

Loan Notes may not be a Suitable Investment for all Investors

Each potential investor in Loan Notes must determine the suitability of an investment considering its own circumstances. A potential investor should not invest in the Loan Notes unless it has the expertise (either alone or with a Financial Advisor) to evaluate how the Loan Notes will perform under changing conditions, the resulting effects on the value of the Loan Notes and the impact this investment will have on the potential investor’s overall investment portfolio. Noteholders are exposed to the risk of partial or total failure of the Company to make interest and/or redemption payments under the Loan Notes, including a total loss of the invested capital.

Risk of Early Redemption

Any early redemption of the Loan Notes may result, for the Noteholders, in a yield that is considerably lower than anticipated. In addition, liquidity of the Loan Notes that would not have be tendered for redemption could be reduced. Early redemption is down to the company’s discretion and will be considered on a case by case basis.

Risk factors relevant to investment in Loan Notes through an Innovative Finance ISA

Investment made through an ISA may only be made on the terms set out in the ISA Terms and Conditions, the General Terms and Conditions and the application form which an investor signs to subscribe for such an ISA. Investors must review carefully the terms set out in these documents before applying for an ISA account. The ISA Manager will hold the client monies in relation to the ISA in a pooled account pior to drawdown by the Company. Investors are clients of the ISA Manager and all rights and entitlements with respect to that client relationship are set out in the ISA Terms and Conditions to which Loan Noteholders must refer. The ISA Manager (or any of its relevant partners for which the ISA Manager plans or procures that arrangements are made in respect of the ISA) cease to hold the necessary permissions to carry out their respective roles, it is expected that all reasonable efforts will be made to transfer the ISA contracts to another suitably authorised firm which can act as the ISA Manager, or make suitable alternative arrangements for alternative partners, but such is not guaranteed. The ISA may be terminated in accordance with the ISA Terms and Conditions in certain circumstances.

Fees payable to the ISA Manger may significantly reduce returns for subscribers.

The fees payable by Loan Noteholders to the ISA Manager are set out in the ISA Terms and Conditions. Subscribers investing smaller sums in the ISA should be particularly aware of these fees (especially where a fixed fee applies) and should carefully consider the impact these could have on the proposed investment.”

IFISA

Investors can hold the bonds via an ISA, specifically an IFISA (Innovative Finance ISA), allowing them to potentially benefit from tax free income. An individual investor’s annual ISA allowance can be invested, or existing ISA cash balances can be transferred into the ISA.

The option of an Innovative Finance ISA was launched on 6th April 2016. This class of ISA allows individuals to invest into the Loan Notes available, and so receive any Interest earned gross within that ISA –and so tax-free. ISA loan note holders do not pay tax on any of the interest they receive on ISA investments. Nor do they pay tax on capital gains arising on ISA investments. Every UK resident over the age of 18 is entitled to subscribe to a tax-exempt ISA.

An investor can choose to subscribe his annual ISA allowance to anyone or spread across all four of the available types of ISA cash ISAs, stocks & shares ISAs and innovative finance ISAs and lifetime ISAs. Furthermore, loan note holders can transfer multiple years’ worth of funds from existing ISA balances. Investors can for example transfer cash to an IFISA from an existing cash or stocks and shares ISA.

Notice to Investors

It is important to highlight most properties that Ziphouse purchases will be at least 15 20% under the current market value and some with even more margin for profit.

Ziphouse will not only be acquiring undervalued properties to simply purchase, improve, and then sell, but we will build a large portfolio to profit from both capital appreciation and rental income. There will be no limit on the number of properties or investments into which the company may invest, and the company’s financial resources may be invested in a number of opportunities allowing diversification.

The company is in the business of acquiring under market value properties and then selling and renting them after refurbishment to earn capital gains or high yield rentals. The proceeds of funds will ONLY be used to purchase properties under market value, and we will be generating leads every day via marketing and our industry contacts. We have established good relationships with a number of companies throughout the UK that are able to offer us repossession stock on a weekly basis.

Our Philosophy

We believe long-term sustainable returns can be achieved by acquiring below market value properties with strong rental demand with zero bank financing. Cash purchases will mitigate the company’s risk and yield returns from day one, ensuring that the company has stronger than average revenues with predictable cash flow. Once acquired, we will use our ownership to drive improvements and we will endeavour to positively impact the areas in which we deploy capital, adding additional value and reducing risk in the process while finding or retaining reliable tenants.

Operational Strategy

Ziphouse, on behalf of others will initially focus on residential properties for the immediate future; however, we will look at any opportunity with an open mind and discuss with the team if the opportunity is good for us as a business and our investors. In terms of geographical focus, most bank repossessions will be around surrounding areas of London and the ‘quick buy’ route will be anywhere in the UK. Depending on the areas in which we acquire properties, this will have an impact on price as it’s well known that certain areas of the UK are much higher in value than others. However, regardless of location, it is a key part of our strategy to purchase every property at a minimum of 15% below its current market value.

The way we can do this for a typical residential property is through large advertising campaigns. We will give guarantees (upon certain terms) to the vendor that we will acquire their property within a certain time frame. We aim to achieve this within seven to thirty working days. For these types of transactions, our main market will be properties that are in the price range of circa £75,000 – £500,000.

Ziphouse will provide a tailored quote to sellers for their properties within few days after the first visit and property inspection instead of making them wait for weeks to get a quote so they can quickly sell their property for cash. Ziphouse will appoint an Asset management company such as Spicerhaart, PX Hub, or Move With Us. These companies will be there to provide accurate valuation and to supply full reports on each property. In addition, the business will also employ a solicitor and underwriter.

The Business Opportunity

Ziphouse has secured established long dated facilities management and marketing contracts to provide services to companies in the property sector.

The value of these contracts over the next three years aims to generate substantial income over and above the operating costs of Ziphouse.

Ziphouse uses marketing strategies to attract lucrative property opportunities for property companies.

Ziphouse manages the entire process from initiating leads to negotiating with customers, facilitating all valuation and legal requirements for and on behalf of property companies.

The Market

Finding the perfect property in the ideal location can be extremely difficult but buying a rundown property in the most desired location is a viable alternative. We prefer buying the worst house we can find on the best street that fits our criteria, as that gives us maximum scope to add value. In its current condition, the property will likely put many people off, and so the price should reflect that.

As a remodeler, we can’t influence an area or change the street, but we can completely transform the house, totally rebuilding it if necessary. Most of the profit is made in the purchase rather than what you do to it, so the price we pay is crucial. Ideally, Ziphouse buy’s properties that has potential that others haven’t yet spotted, so we aren’t paying a premium for it.

Having contacts in certain banks will allow Ziphouse to purchase directly from these institutions, giving us a head start and quick revenue streams at a much lower cost per acquisition. Typically, these properties will be approximately 30% below market value, providing Ziphouse with further opportunities for growth.

Potential to Add Value

Ziphouse provides information to it’s customers regarding investing into areas of the home such as itchens, bathrooms, and unused spaces (lofts and basements) to add substantial value to a property.

Ziphouse estimate that on average spending £10,000 on a new kitchen could add between £20,000 to £30,000 onto a property’s value.

Similarly, a loft extension could cost you around £35,000, but it has the potential of adding up to £100,000 in value to a property if another bedroom and bathroom are added, depending on where the property is located.

No expenditure will be incurred unless it can demonstrate a minimum increase of 20% cost of expenditure. No works carried out can exceed 12 weeks and will be carried out by a contractor with appropriate insurance cover.

Buying Properties under Market Value (Quick House Sale)

The guaranteed cash sale is one of the quickest, most stress-free ways to sell a house. Using the cash advance option is an industry-leading product, where we can pay up to 85% of the house’s value. The seller may also receive a partial upfront payment. There are no hidden fees, we don’t charge referral fees, and we cover all legal fees. Our pre-approved property cash buyers will give the seller a no obligation cash offer on their property for free.

Co-Buy 50% of your home & rent 50%

Co Buy are committed to helping you secure a home. Co Buy do this by offering you the opportunity to purchase half of a property and rent the remaining half. Why? A home is the most expensive purchase you are ever likely to make. It is notoriously difficult for first-time buyers and those who have been out of the property market to secure a home – rising house prices, large deposits and getting mortgage approval all contribute to some of the challenges faced.

We seek to address this by partially selling properties. We sell half and then rent out the remaining half. This allows you to secure a property with a much lower deposit than you would normally need. It also opens up the opportunity for you to skip a few rungs of the property ladder and buy your dream home.

Repossessions

Having contacts in certain banks will allow Ziphouse to purchase directly from these institutions, giving us a head start and quick revenue streams at a much lower cost per acquisition. Typically, these properties will be approximately 30% below market value, providing Ziphouse with further opportunities for growth.

Covid Impact on UK House Prices

UK house prices could fall by as much as 10% this year due to the impact of coronavirus, experts predict. UK house prices had started to recover from uncertainty caused by Brexit at the end of 2019. Additionally, the so-called Boris bounce from the Tories’ election victory in December set the market up for a strong start to 2020.

But then coronavirus came along, when buyers couldn’t visit houses because of lockdown, a fairly crucial step when moving to a new house. The dramatic economic hit has also made people more wary of making big purchases right now. While the impact of the coronavirus outbreak on UK house prices is not yet fully understood, analysts believe they will dip in the second and third quarters of 2021.

The coronavirus pandemic will, however, do more than change the way we might feel about our homes.

It has the potential to have a huge impact on property markets around the world.

It is fairly clear that with massiven unemployment, wage cuts, business failures, and job uncertainty, many people are likely to be cautious about making the biggest investment of their lives – buying a home.

Normally that leads to falling house prices, and during the last recession and credit crunch that is what we saw in the UK, US and many other countries. The forecast for the housing market comes as Britain’s economy is under renewed pressure from a new strain in the virus, tougher lockdown controls for much of the country, and chaos at Britain’s borders with just days to go before the end of the Brexit transition.

How Ziphouse will thrive despite the impact of COVID-19

Co Buy

Ziphouse is in prime position to thrive during the torrid time caused by Covid-19. With house prices expected to fall by up to 10% next year, fuelled by the possibility of unemployment and the end of the government’s furlough scheme along with the stamp duty holiday, Ziphouse and our strategic partners have  formulated a rescue package for those homeowners who have struggled with their mortgage payments. Ziphouse can buy a proportion of a homeowner’s  property and in doing so, pay off their existing mortgage provider and thereafter pay rent on the amount we purchase. Furthermore, at any point once the homeowners’ circumstances change, they can buy back or mortgage the percentage we own. The remaining proportion is owned at all times by the homeowner. This is called Co Buy.

Quick Sale

The Office for Budget Responsibility, the Treasury’s economics forecaster, expects that house prices will plunge by more than 8% in 2021 before staging a rapid recovery in 2022. As Ziphouse only purchase properties a minimum of  15-20% below market value with many properties notably a lot more, we are in a great position to not only help those homeowners that are in need of a quick sale but as we typically buy and sell our properties within 3-4 months, our profits will continue to grow.

What gives us the edge?

Focus on leveraging its vast network of contacts

Ziphouse will focus on leveraging its existing network of contacts with the various property companies and banks to buy properties and generate sales. The company will rely on word-of-mouth marketing and not be forced to allocate a large portion of their budget to advertising costs

Purchasing incomplete and undervalued properties

Ziphouse will coordinate with it’s property companies the purchase of undervalued properties and those that are not in condition, which will make it easy for the business to purchase properties at a low cost. Moreover, quick cash purchases will also increase the chances of buying properties at a good cost.

Using our own marketing agency

The company owns its marketing company named RMJB Solutions Limited that has been operating for 6 to 7 years. We’ll utilize this marketing company for our marketing campaigns, which will significantly reduce our marketing costs.

Using socials media and other digital marketing channels

Ziphouse will use all major social media and digital marketing platforms to fuel its brand recognition. It will have an SEO-friendly website that will provide information about its portfolio properties and rentals with aspects such as featuring photos of the property along with a detailed description of the property, amenities, details of the surrounding neighbourhood and any concessions that are available.

IFISA