Myself and my JV colleagues at a minimum get either an email or a phone call ” I want to sell in the South and then buy in the North West…in most cases a HMO”. It is rather obvious as most professional HMOs generate on a gross basis 20% or more. Compare this to a luxury flat of 2-3% with the “hope” of capital appreciation. Capital appreciation is not a given as most think…It simply might not happen. We focus on cash flow. Cash flow keeps us out of trouble. The same with virtually no gearing or leverage.
Had an interesting comment on Facebook the other day, Why would someone buy from you if they can a Professional HMO themselves? Well, in all honestly anyone can do a Professional HMO. However have to take into account for instance, lets say they live in London, The Virgin train at a minimum once a week 2 hours plus each way gets old. More so, who is going to manage the project? Who will be there when/if there is an issue.
I would like to share a story. I had a call early last week from a women in London who is an accountant. She sold one of her London properties and thought she would “simply” find a builder in Eccles and do a Professional HMO. Short story, long. She finished her professional HMO after 8 months of stress and for a bed ( non en suite) she was all in for 185,000. For anyone that knows Salford and Eccles knows that is way over budget both time and money.
Like in everything…if one applies themselves to anything they can succeed. I truly doubt I could take a weekend course on flying and not crash. Same is with property. Property investing takes surrounding yourself with the right people….having a power team…knowing costs of EVERYTHING and still there will be surprises. Myself and my JV partners over the last 2 years plus did about 35 properties. There are always issues to overcome…Constant learning…Constant challenges…
Property investing is not as simple as too many believe…
At least my personal experiences…
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