Buying a Portfolio of HMO Properties All at Once

Buying a Portfolio of HMO Properties All at Once

Buying groups of HMO properties all at one shot is a great way to rapidly increase the size of your portfolio. The thing to overcome is being able to find, evaluate, and finance such deals. We have both sold and purchased portfolios of HMOs. We have sold a portfolio of Social HMOs on several occasions to investors from Saudi Arabia as well as one Professional HMO here and there to investors from Hong Kong. Actually we are getting more interest from Hong Kong investors at the moment.

The key to finding portfolios of HMOs are sourcers. We have numerous sourcers whom we update on our Professional HMOs and Social HMOs. On the flip side of this…most of the properties I see from wholesalers range from OK to terrible to over priced. The portfolios are usually particularly bad, with most of the properties residing in the absolute worst parts of town and over valued. However here and there you can find deals. We are in the process of buying one property in Doncaster that came via a sourcer. We will be making it into a 5 bed ensuite in which we will refurb….tenant and then sell on. You need to move quickly when looking to good deals. That’s how fast this game can move. Try to get in the property as soon as possible! Also if you are not available or want to maximise time….make blind offers on properties you think you could want. Don’t over pay…

Try to meet with the actual vendor. We built rapport while getting as much information from the vendor who in many cases is a tired landlord …..we learn about the properties themselves. This is always a critical step. The vendor needs to trust you and want to sell the properties to you. By building this trust, you can increase your odds of stemming off any other last minute deal stealers….It is definitely a great way to build your portfolio by buying groups of Professional HMOs.