Sourcing Professional HMOs Manchester

Sourcing Professional HMOs Manchester

We should have just one pound for every email or phone that we receive in order to source HMOs. We really would not have to be in the property business. We would have enough money to live in Spain.

I had an email earlier today asking if we can source them a 6 bed Professional HMO in Manchester that can be purchased for no more than 90,000 and refurbish cost of 25,000. Anyone with any experience would know that in Salford you can not find a Professional HMO at anywhere near that price let alone do the refurbishment.

I have others that think the banks will lend them 75-80%….Good luck…Have some calls that have never owned any property and confident the bank will lend them on a Professional HMO. Will not happen. Banks want experience.

Then we get calls or emails with people with money…no need for the bank and offer to pay us to source and manage the refurbish…they offered us 2k.  Gee thanks…but no thanks…

The we get calls or emails that they will pay us a reasonable amount to source and manage the refurbishment and they forget the most important issue…Who is going to manage the property? The reality we learned is NO ONE IS GOING TO MANAGE YOUR PROPERTY unless they have a very vested interest. We tried several estates in Manchester that “Claim” they manage HMOs professionally. Every week was something. We were hit with unneeded maintenance that was under warranty. The income statements every month were wrong and short funds. Once we had a tenant move out and we could not understand why it was taking so long to re tenant. The simple reason the room in the Professional HMO had not been cleaned and was disgusting. We sent this to the agent…DUH….no comment…One time the garbage was not thrown out for weeks. We ended up needing a dumpster….150 qid in the bin…

All of these people that think they can simply pay someone to source are dreaming. Yes there have to be exceptions but we have seen too many nightmares. There was one sourcer who took monies for works never completed. Whoops….total reality…

I had a call from a gent from Sweden. He used a sourcer who refurbished the property ( rather way over the real cost)…He promised him that he would manage the property there after. He managed for one month and decided to stop. Ironically I was supposed to meet this same man…(not gent) with his wife and 15 minutes before the meeting he called and cancelled. Extremely professional. He did me and my solicitor a favour.

We seek JV partners who want hands off with security and solid returns. Unfortunately too many of time we start conversations and the investor simply wants more of the cake. They want us to source for them in order they can make more money personally. Good for them….We have seen the reality of sourcers….have heard all too many stories of half finished …or not even started works….over paying for works….and more often than not…No management in place if the Professional HMO is ever truly finished. Words are cheap….Promises are cheap…Get recommendations if you decide to go this route….more so I do believe there are sourcers out there who are honest….hard working who do what they say….Unfortunately they are the fee….Be wary when attempting to source a professional HMO.