Business
‘I’m positioning and layering credibility at every point by explaining what you need to run an HMO successfully’ Its 2020 and David is back at work deal packaging and in this episode shares the process and a detailed template for selling an HMO to investor clients. This is a great episode that takes you step-by-step through the process from the moment you first take your investors on ‘patch’ with David explaining in detail how you can keep selling your credibility and the deal package effectively throughout the visit. KEY TAKEAWAYS There is a process of selling an HMO that begins the moment you make contact with potential investor clients. Invite potential clients to the office because this builds credibility. On arrival at the property talk about the street and the relevant proximity to useful facilities and locations. This should be done in a conversational manner, continuing to build rapport with the potential investor client. Having a floorplan means it is much easier for the client to see the direction of the work and how refurbishment will result in a functioning HMO. Make sure you know the rules and regulations that must be met for an HMO. This will demonstrate to the investor that you have expertise in the area of HMO. If you are going to package HMOs you are going to need to prove to the investor that you can produce the final project You need the right people if you are going to package HMOs you need; A builder, who is competent, capable and you can trust. Possibly a structural engineer if you are making alterations. An architect to draw up plans and produce the building control documents. Contact with the right financial person, for an HMO this will be a commercial broker or someone who has access to commercial finance. Every investor will ask ‘how much can I get out?’ and you need to be able to provide an answer based on the numbers and your experience. BEST MOMENTS ‘I’m fully confident about Progressive Lets and their ability to manage lets’ ‘A six-bed HMO is the sweet spot as it doesn’t require planning’ That is professional and the way you should do it ‘If you want to package HMOs there will be stuff in here that you will want to include in your presentation’ VALUABLE RESOURCES Property Sourcing Profits Podcast https://www.progressiveproperty.co.uk/ https://unlimited-success.co.uk/ https://www.facebook.com/groups/progressivepropertycommunity/ ABOUT THE HOST David is a property expert with over 25 years’ experience and his own portfolio of 26 units. His current rent roll is in excess of £10k per month. He is also a partner in a Deal Sourcing and Packaging business in the North West of England and has sourced over 250 properties for investors since 2004. In recent years he has, by necessity, had to develop an expertise in LHA strategies. This area is increasingly becoming a niche for him, and he enjoys empowering other landlords by sharing the knowledge he has gained. The ultimate purpose when sourcing properties in this sector for investors is to minimise risk while maximising profit. He has had to find answers to the challenges of Tenant Find, Management, ensuring rents are paid and the transition to Universal Credit. These are strategies he uses in his own business and also on behalf of investors. His investor clients regularly achieve annual gross yields of over 20% with high occupancy rates and voids resolved, sometimes within hours. CONTACT METHOD https://www.linkedin.com/in/david-siegler-7b126316/ https://www.facebook.com/DavidSieglerInvestments/