Issues with Property Sourcing Agents
There are sourcing agents and there are sourcing agents for Professional HMOs. We have witnessed several off shore property investors being promised the world and then in the middle of the project they disappear. We personally we were supposed to have a meeting with a couple from Manchester who were very busy on social media. We spoke about offering a JV relationship or even use us an investor. We were at the meeting with our solicitor (out of coincidence) and 15 minutes after the scheduled meeting we received a call from them that they can not make the meeting. Ironically we were in discussions with a gent from Sweden to buy one of our ready made & cash flowing 6 bed Social HMOs and in the conversation he asked if I knew XYZ sourcer. I mentioned that we scheduled a meeting and they did not show up. Then he gave his recount of what transpired and was nothing short of a nightmare. Seems like a typical story. We had an investor from India who we worked with also have an issue. We explained how we work with our JV partners…as it is very difficult to find a sourcer who has a vested interest in the property. What we did with this chap was use one of our building team and put money in the deal as a first charge to remedy the project. We also helped him rent out the property to commercial tenant who needed to house their workers.
On Friday we were again contacted by an offshore investor whose property has been sitting empty now for several months as the sourcer had personal issues. Prior to that we had 2 sisters from China who attempted to do a HMO in Manchester and the builders did not finish the works even after prepaying. Our work is based on providing ready made social and professional HMOs. We realised this niche as many investors seek the yields of the Northwest yet can not manage the builders…or the tenants. Too many think they can run a project remote control. We believe in having JV partners that make money with us and our on top of the projects. We are not greedy…there is plenty of cake for everyone in this property game.