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Earn £100,000 a year passive income within three-five years, says Platinum Property Partners in its marketing headlines. As it approaches its third birthday, this unique franchise proposition is proving to live up to its claims

When Platinum Property Partners (PPP) launched in July 2007, it had just 10 foundation franchise partners (PPP’s term for franchisees). Today there are almost 60, with nearly 100 highly cash-positive buy-to-let investment properties in the combined portfolio, each producing an average of over £12,500 pre-tax profit per annum.

When they join the franchise, prospects commit to making a minimum of two of this type of investment each year, and can be virtually assured that if they do, and follow PPP ’s systems and strategies to acquire, refurbish, tenant and manage the properties, they will see pre-tax profits of £100,000 within five years.

Industry leading

Simon and Anna Mackaness are PPP franchise partners based in Northampton. Since they joined in July 2007, the couple have bought seven UK buy-to-let properties, with 43 rental units, which generate a gross yield of over 15 per cent, an industry leading level for residential buy-to-let. The annual gross profit from this portfolio - after they have paid the mortgage, all utility and other bills, and allowing for maintenance and void periods - is around £100,000. The gross return on their own capital invested is over 33 per cent.

Their motivation for joining PPP was a desire to find a business they could run together and one that would generate enough cash flow to pay for their children’s education. They had looked at a number of franchise opportunities, but found most of the businesses uninspiring.

"Most of the opportunities we looked at seemed to involve huge numbers, but a relatively tiny profit," says Simon, a former insurance broking director. "I just couldn’t see a long-term future that I’d be happy with. PPP’s was the only one we looked at that really caught our interest. Most of my family are involved in property in some way, and it seems a very logical, sensible basis for a business, with tangible short and long-term profitability and excellent pension provision."

Their plan for the next 12 months is to consolidate their portfolio and make it more efficient. Says Simon: "I know we’re making good profit, but I also know there are areas where we can still minimise the outgoings. Running this business properly takes time and effort and Anna and I are aware that with our busy lives we haven’t been doing everything we could to really maximise the profitability. By following the franchise system, and with PPP’s ongoing support, I have no doubt we will see increased profits this year.