Why do people sell their HMOs?
“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 s...
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