Where does one get financing for Professional HMOs or even flips of Professional HMOs. Firstly I would say, make yourself credible. You are not get financing you are offering an opportunity to someone that otherwise would not have either the time or the knowledge of the property deal. We are lucky as we have found some new JV partners for our Professional HMOs. We use our own money however finding a credible JV partner just brings in added revenues.
Private money lenders typically care more about the deal than they care about your credit score. They want to know you have a solid track record of flipping in order to feel comfortable. For example we have completed on more than 45 Professional and Social HMOs. Any potential JV partner or private lender can come visit the properties….meet us and know that we are real. This is paramount….take them around your projects. Have great communication. Protect your private money lenders or JV partners by either having a first charge on the HMO property or even they own the property themselves. If they own the property have a solid JV agreement plus strongly suggest a RX1 ( restriction in the land registry). The most important issues are track records and keeping your private money lenders/JV partners secure.
Finding private money lenders or JV partners is not impossible. Reach out to family and friends….show them what you are doing….
ASK THEM …IF THEY KNOW ANYONE THAT MIGHT BE INVOLVED IN THIS PROFESSIONAL HMO PROPERTY DEAL!
Reaching into your network of people you already know can be awesome, whether you know people with deep pockets or know someone who knows someone who does. You are not begging for money. You are offering them an opportunity. Can not say that enough with Professional HMOs. The number one strategy here is getting the word out about what you are doing and what you are looking for to your family, friends, neighbors and coworkers. Have a portfolio setup on your phone or dropbox that you can show potential private money lenders or JV partners. Personally we use our website and get a great deal of traction.
Another simple idea…Ask people that you already work with, estate agents, your accountant, your solicitors and basically everyone you come in contact with. In most cases someone you already work with knows someone who might be interested in a way to get a solid return on their money in one of your Professional HMO projects.
Dealing with people you already know can be the surest ways to start. They know you and hope that you have instilled confidence. You can show your potential investors exactly how the deal stacks up. What they can make on the Professional HMO as well as how they are protected either by owning or having a first charge.
The more successful you are in your Professional HMOs, the more individuals will come out of nowhere to see how they can also benefit from your property success. We are on the first pages of google for Professional HMOs in Manchester. People come to us. Make yourself credible….have great communication…make sure the deals stake….protect your investors as if it was your money….and you will succeed overtime.