A couple times a day, I either get a phone call or email asking if we source professional HMO properties. I am asking what we charge to source. Granted even though we all speak the same language, I am confused on the mentality. We are from the US originally. There were basically property wholesalers who flipped rather rough properties to be refurbished…..and then there were those who either sold to first time buyers or investors who wanted a ready made cash flowing property to rent.
Myself and my JV partners are of the later. We source….we refurbish….we tenant…professional HMOs. Some of these we keep and some we sell off to offshore and London investors. What I find so interesting is that someone thinks they can find someone out of the internet to find them a property…refurbish it and give it to them….or better yet…run a refurb project as if was a remote from a TV.
One lady from London told me this week about the struggles she has encountered with her builders…with costs and been a total nightmare. This was her first project and now probably her last.
All of this property business is not easy. You have challenges from finding properties…you have challenges even with honorable builders….you have challenges with tenants…
So why do people think they just pay a sourcing fee and run a refurbishment project?
There are exceptions however…Myself and my JV partners are dealing with a gent from India. He is a Chartered accountant who is testing one property in order to bring in his clients & invest. It is in our best interest to help him succeed….My comfort level is that as much as we suggested 3 builders…all of whom I have used…I told him the truth about each.
It all boils down to finding the right people and the right team…People that are actually doing deals. Not mentoring or running courses..
thoughts.
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