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paulh94

Property Hub Sourcing?

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Hi all, hope everyone is well? This is a bit of a random one, but hopefully it will start a bit of a debate as I'm keen to hear other peoples views and thoughts. Two questions really... I've been exploring the Property Hub sourcing service for my first BTL in the North West. I currently live in London and run my own business full time so am a little more limited on time, aside from this even though I have been researching and reading lots of books to up-skill myself - I have the typical paralysis and just can't seem to find the right property, in the right location for the right price myself. Which I'm sure a few people struggle with! So I thought perhaps this was a good place to start for my first property in my portfolio, as I know PH have openly stated on their site that they aim to get between 10-12% discount on new build properties, which automatically covers their £4,995 fee. In brief my strategy is to begin building a property portfolio and within the next 10 years have 20+ properties in there within this time-frame, strategy wise I like the thought of having a mixed approach which would be having some BTL's, then looking at maybe one or two HMO's (once I have more time), then finally looking at some BTS/flipping (when I am in a position to have a more relaxed approach with my current business)  - would also be great to hear if anyone has adapted the same or similar approach? I do notice in all of my reading and research it seems people tend to adapt one strategy (either ROI or Capital Growth) and stick to it but in order to reach my financial goals, which I won't go into on here I feel like a mixture of all approaches and strategies is necessary for me to achieve them. 

 

I just wondered if anyone on here had any experience with property sourcers, whether it's worth the fee or whether I'm simply better holding out and trying to find it myself. Would be great to see what people think!

 

Thanks,

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Hi Paul,

I haven't had any experience with the typical one man band "property sourcers". There are plenty of them out there and I if you considered using one, make sure you do your background checks and proper due dilligence.

I have used Property Hub's sourcing services for 2 properties and I am in the middle of the transactions. Based on what I have seen, the opportunities are great, they have had a tonne of research / background due diligence performed on them, which makes the opportunity itself very reliable and stack up over the long term. Based on this alone, I feel it makes up for the £4995 fee.

It depends on exactly how hands on you want to be. I feel you want to do a bit of both. Depending on your available budget - you could get a BTL sourced, experience the transaction end to end and get it up and running. Then next time, consider sourcing something yourself in one of the North West locations. This way you'll have a bit more confidence rather than dealing with the unknown for the first time, especially if you're living in London!

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Hi Paul

I haven't used any sourcers like PH to date, but do like to keep track of what they're offering.

One thing I find interesting is whether or not they do actually offer 'BMV' deals. Obviously, it's a long-term investment so it's difficult to track due to the lag time. Here are some of the offers from PH (previously RMP) that they've provided in the past. 

image.thumb.png.6a7830a418cece781dfb4f4a891d93c7.png

I've received some 'deals' from other sourcers (not PH/RMP) where they just ping out emails to their investor lists. Sometimes when you go back and check on Mouseprice or Nethouseprices for what it ended up selling for, it's lower than what the sourcer was offering, so you would've paid a sourcing fee plus a higher price. 

Moral of the story is, conduct your own due diligence. Not only on the deal/property/area, but also on the sourcer. 

I think one of the benefits of PH is that you need to have a call with one of their team first before joining their mailing list to identify your goals/plans. They also send out any offers the week before to allow you to do your own research, rather than pressuring you into a rushed purchase. 

Based on onkar's feedback, it seems positive. And I've spoken to a couple of other investors when they had the old meet ups, where they've invested multiple times with them too. 

 


Blog: https://abcdad.co.uk Insta: @abc.dad

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Hey @DerekT thanks for the above. Really useful! Can I just check are the offers above published somewhere? Also this may be a stupid question (so apologies in advance!) but with the asking price in the document I'm assuming this is before they add on their sourcing fee? 

 

Cheers,

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Hi @paulh94, I'm not aware that they're published anywhere. I believe you have to sign up and have a chat with their team first before being added to their distribution list for offers. And yes, the asking price is just the purchase price. I only took a screenshot of my tracker and that includes the other columns for costs like stamp duty, fees (sourcing, legal etc), ongoing costs (service charge, ground rent, mortgage, etc). 

Thanks @onkar! I originally based it off Rob D's spreadsheet, but slowly modified it overtime. Been using it for about 3 years now to track certain areas and deals that come in from various sourcers. 

If you want an extract of the above with the full details/columns, just drop me a message with your email.   


Blog: https://abcdad.co.uk Insta: @abc.dad

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