Richard Nicholls Property Shrewsbury Shropshire

  If you’re doing direct to vendor or landlord marketing campaigns  (cold leads) it’s worth remembering that your target reader is also picking up dozens of other similar letters each week. This makes the vendor/landlord realise that they have the upper hand and have lots of options available to them A typical HMO landlord, for example, gets dozens of R2R letters, a few estate agent letters, a few ‘HMO specialist agent’ letters and lots of ‘fast sale’ leaflets too. This can amount to hundreds over the year and it is that much as I speak to HMO landlords weekly about this. A typical homeowner (especially if their house is ‘tired’ or on the market) will get loads of “dear homeowner” leaflets as well as offers of “we pay market value” and “cash in 7 days” in addition to the concussing by local and national estTe agents. So one has to understand that there’s no loyalty from the property owner when it comes to phoning round a few of the numbers on the letters and ‘seeing what people can off

Will your HMO go up or down in value over time? There are various ways that an HMO can increase in value... • Rents go up in the area due to demand increase (could be an expanding Uni, a large factory or employment coming to town etc). If the HMO was originally valued on the income then it will ‘go up’ in price. • Article 4 coming in or some other factor that means the local gross yield sale/value expectation goes down - this will push up values. • Standard bricks and mortar increase if the HMO was bought in the South or to a price comparative to B&M - hard to get ‘up north’ • If the tenant type changes or becomes more ‘investable’ - you can sell an HMO for more with a 10 year FRI a lease than you will get for the same HMO with poor occupancy and a tough tenant group etc But What goes up can also come down, and we see these factors equally as commonly • Having the HMO commercially valued upon refurb and based on high rents because the HMO is new. Fast forward 3-5 years when the pla

A short series of videos based around the steps to selling your HMO from valuation, marketing advice, likely buyer types, taking offers and negotiating and sales progression. The Property Advantage Richard Nicholls Jessica Mortimer-Collier Shrewsbury Shropshire Property #richardnicholls #richardnichollsproperty #richardnichollsshrewsbury #richardnichollsshropshire #hmo #investmentproperty #thepropertyadvantage #shrewsbury #propertyinvestment #tenants #landlord #btl #investment #ukproperty #propertymarket #northwest #landlords #investinginproperty #yield #ROI #HMOinvestment #cashflow #TPA #westmidlands #birmingham #houseshare #ukinvestmentproperty #hongkongbuyers #eastmidlands #southeast  

A short series of videos based around the steps to selling your HMO from valuation, marketing advice, likely buyer types, taking offers and negotiating and sales progression. The Property Advantage Richard Nicholls Jessica Mortimer-Collier Shrewsbury Shropshire Property #richardnicholls #richardnichollsproperty #richardnichollsshrewsbury #richardnichollsshropshire #hmo #investmentproperty #thepropertyadvantage #shrewsbury #propertyinvestment #tenants #landlord #btl #investment #ukproperty #propertymarket #northwest #landlords #investinginproperty #yield #ROI #HMOinvestment #cashflow #TPA #westmidlands #birmingham #houseshare #ukinvestmentproperty #hongkongbuyers #eastmidlands #southeast  

A short series of videos based around the steps to selling your HMO from valuation, marketing advice, likely buyer types, taking offers and negotiating and sales progression. The Property Advantage Richard Nicholls Jessica Mortimer-Collier Shrewsbury Shropshire Property #richardnicholls #richardnichollsproperty #richardnichollsshrewsbury #richardnichollsshropshire #hmo #investmentproperty #thepropertyadvantage #shrewsbury #propertyinvestment #tenants #landlord #btl #investment #ukproperty #propertymarket #northwest #landlords #investinginproperty #yield #ROI #HMOinvestment #cashflow #TPA #westmidlands #birmingham #houseshare #ukinvestmentproperty #hongkongbuyers #eastmidlands #southeast  

A short series of videos based around the steps to selling your HMO from valuation, marketing advice, likely buyer types, taking offers and negotiating and sales progression. The Property Advantage Richard Nicholls Jessica Mortimer-Collier Shrewsbury Shropshire Property #richardnicholls #richardnichollsproperty #richardnichollsshrewsbury #richardnichollsshropshire #hmo #investmentproperty #thepropertyadvantage #shrewsbury #propertyinvestment #tenants #landlord #btl #investment #ukproperty #propertymarket #northwest #landlords #investinginproperty #yield #ROI #HMOinvestment #cashflow #TPA #westmidlands #birmingham #houseshare #ukinvestmentproperty #hongkongbuyers #eastmidlands #southeast  

A short series of videos based around the steps to selling your HMO from valuation, marketing advice, likely buyer types, taking offers and negotiating and sales progression. The Property Advantage Richard Nicholls Jessica Mortimer-Collier Shrewsbury Shropshire Property #richardnicholls #richardnichollsproperty #richardnichollsshrewsbury #richardnichollsshropshire #hmo #investmentproperty #thepropertyadvantage #shrewsbury #propertyinvestment #tenants #landlord #btl #investment #ukproperty #propertymarket #northwest #landlords #investinginproperty #yield #ROI #HMOinvestment #cashflow #TPA #westmidlands #birmingham #houseshare #ukinvestmentproperty #hongkongbuyers #eastmidlands #southeast  

A short series of videos based around the steps to selling your HMO from valuation, marketing advice, likely buyer types, taking offers and negotiating and sales progression. The Property Advantage Richard Nicholls Jessica Mortimer-Collier Shrewsbury Shropshire Property #richardnicholls #richardnichollsproperty #richardnichollsshrewsbury #richardnichollsshropshire #hmo #investmentproperty #thepropertyadvantage #shrewsbury #propertyinvestment #tenants #landlord #btl #investment #ukproperty #propertymarket #northwest #landlords #investinginproperty #yield #ROI #HMOinvestment #cashflow #TPA #westmidlands #birmingham #houseshare #ukinvestmentproperty #hongkongbuyers #eastmidlands #southeast  

  Signing a R2R contract on an HMO that you own might solve a short-term cashflow or stress issue but it will devalue your HMO if you might need the option to sell it. A R2R HMO shows that the property was underperforming before the R2R contract was active - or at least that’s the perception. “Tired of managing your HMO?” “Bad tenants causing you stress?” “We give you a guaranteed rent and no headaches” The terminology on a R2R marketing letter will trigger responses from landlords with struggling HMOs - those who see R2R as an end to a drama or the stress. Up and running HMO buyers know this. “Why did the current landlord sign a lease for less money?” “What happens if I want to end the lease?” “What happens to the tenants once the R2R lease expires?” Most often, new HMO buyers have the energy and drive to run an HMO themselves (with a managing agent too) as they are excited about building up their portfolio. They are not ‘you’ yet, the tired landlord who responds to the R2R letter. A

  If you want to get into deal packaging and sourcing and are thinking of offering the full service from finding a deal, securing it for an investor, costing the works for refurb/conversion, project managing the build phase, furnishing and filling with tenants - the full ‘hands-off’ service to investors, there is one stage in the process that will trip you up more that any and you need to consider carefully if you want to get involved in it or not. Building works and dealing with/employing builders This is where money is wasted, issues are caused, delays happens, people get ripped off and reputations are lost - and it’s normally not the fault of the ‘deal packager’. I’ve been there, lots of times, and only truly scaled up in terms of volume of transactions (we’ll complete on 250 + houses this years) when I rid myself of the burden of dealing with refurbs and builders. I had to learn the hard way that being a project manager isn’t for me and that I can build a bigger, more profitable b

  Every non-article 4 area in the ‘North’ has the potential to be the Wild West in terms of ‘packaged deals’ from sourcers. Cheap as shit terraced houses with fancy architect’s drawings, a superb looking spreadsheet to highlight the yields and ROIs and a mood board with mustard feature walls, en-suite designs and anthracite kettles. Low purchase prices because there’s an abundance of terraced houses but a disproportionate amount of money sunk into the refurb and fit out (plus often high borrowing costs) only to create a product that there is no demand for. Unsustainable room rates that tenants won’t be happy paying for the long terms will equal either a constant turnover of new tenants or a reduction in room rates to mitigate voids. Non-article 4 areas are a developers paradise, every HMO above Birmingham looks good ‘on paper’ or on a spreadsheet. Is the demand there from tenants? Are you developing in an area that gives you a higher chance to ‘add value’, refinance money out, work wi

 Sourcers: If you are starting out by going via estate agents... Get an investor first, understand their brief, get their POF, get them to agree to your terms and then offer on their behalf (if you must go via estate agents that way). Anything else is a con-trick really and isn’t the way to approach things. As an agent (of sorts), the amount of unprepared sourcers that make offers or viewing requests with us weekly is ridiculous. There’s enough good direct buyers out there for decent deals that I’ve asked my brokers in the office to ask immediately “is this property for you?” - in most cases these days estate agents don’t need to bother selling via a sourcer because they’ll already have direct local buyers. So, your job as a sourcer is to learn where to spot value where others can’t, to learn the art of negotiation better than most, to make sure you perform and only offer when you 100% know you have the buyer in mind and onboard prior. You need to make the estate agent want to do busin

So, you’re thinking of selling your HMO? There’s a few things to think about and consider in order for you to get the most appropriate sale for you and your property - value, who’s buying & who can perform, the ‘health’ of the HMO and how much marketing to do. Value I get asked to value up to 10-20 HMOs a week and, usually, the landlord wants to explore a ‘yield’ value sale - this is where the valuation is based on the rental income and not the bricks and mortar. You can start by working out the expected gross yield for your area - what have similar HMO completed sales achieved locally and at what gross yield? This is the first broad brush we use to analysis expected sale prices for our HMOs. Gross yields vary from city to town, south to north and the spread can be from as low as 6% to as high as 16%. Each area has its own pinch point. Obviously, the ‘value’ extends way beyond the gross yield driving force and we look into condition, occupancy, likelihood of getting lending,

  So, you’re thinking of selling your HMO? There’s a few things to think about and consider in order for you to get the most appropriate sale for you and your property - value, who’s buying & who can perform, the ‘health’ of the HMO and how much marketing to do. Value I get asked to value up to 10-20 HMOs a week and, usually, the landlord wants to explore a ‘yield’ value sale - this is where the valuation is based on the rental income and not the bricks and mortar. You can start by working out the expected gross yield for your area - what have similar HMO completed sales achieved locally and at what gross yield? This is the first broad brush we use to analysis expected sale prices for our HMOs. Gross yields vary from city to town, south to north and the spread can be from as low as 6% to as high as 16%. Each area has its own pinch point. Obviously, the ‘value’ extends way beyond the gross yield driving force and we look into condition, occupancy, likelihood of getting lending, size

  Happy HMO valuation day as I work on 14 properties whilst having two toddlers twat me in the balls and head with wooden cooking toys. If you're waiting for a valuation and it's 500% incorrect, please bear with me at this difficult time.

  When I was direct to vendor sourcing, I always found local letting agents as one of the best routes to generate leads I searched locally (or in the area where I wanted a deal) for those small, owner-run letting agents - you know the ones with the office printed A4 rental properties badly hung in the window and an apparent lack of a CRM judging by the amount of files on the desks and storage cupboard tops I never went for the chain letting agents or the letting agents that did ‘sales’ too - waste of time “Have you got any landlords that are considering selling due to retirement or change of circumstance?” I would ask after my second or third PR visit The answer was usually ‘yes’ and I could generate leads easily by offering the rental management back as a guarantee for 12 months etc (or bring in business their way some other way) Doing this in a couple of locations across the country where I had solid landlord buyers really helped me build up my pipeline - some were ready-to-go rental

You’re excited to get into property.... You’ve saved up some money or educated yourself on strategies, or both.... Now you get told to do it FASTER, borrow off JV partners, raise more money, build a portfolio that can change your life in 18-months, have a passive income.... STOP As someone who works with landlords across the country day in, day out, let me tell you one of the most common reasons for people selling property is.... Splitting from JV partner/business partner Saying ‘yes’ to the money but ignoring other more crucial factors that hinder long-term relationships and cause the breakdown of portfolios. Rushing, essentially.

  “Why are they selling their HMO if it cash flows so well?” We get asked this a lot by potential investors (usually first time investors). Answer usually goes something like this; Landlords sell for all types of reasons but usually one of the following: • Fall out with business partner • Divorce • Change of strategy (moving into development common) • “I prefer BTLs” • Can’t make the HMO work (means too tired and worn out as a self-managing landlord or has chosen a crap managing agent) • Need money for other ventures • Retirement • Made money on the refurb and now selling for a yield price to make a profit (flip) • Was overpromised a ‘commercial valuation’ by the sourcer who sold it to them pre-refurb • Had a ‘good stint’ as an HMO landlord, build a good portfolio and now it’s time to sell Like anything, the above reasons are 50% positive and 50% negative so it’s about mitigating your risks and making sure that your exit is on YOUR TERMS and not forced upon you if and when you do sell.