Alongside building an impressive career as a Chartered Accountant, Chaz developed a passion for property. He has been developing and refurbishing properties for his personal portfolio for the past few years, and he decided it was time to get some professional training under his belt and move to larger projects. Chaz’s business partner, Jas, already owns an impressive buy-to-let portfolio worth over £2,000,000. Together, the aspiring developers came on board with the Sourced franchise Network to get into large scale property developments and to take their existing property ventures to the next level.
Having completed their training, the franchisees created an action plan with the help of Sourced Head Office. In just a couple of months, the developer partners discovered a development opportunity in the seaside town of Clacton-on-Sea, Essex. The perfectly positioned plot of land was available with planning permission in place for the build of 6 terraced townhouses.
The franchisees decided to use Sourced’s in-house funding facility, Sourced Capital, to help them fund the project and in just 2 weeks, the full loan amount of £1,103,000 was raised. The franchisees offered a return of 10%-12% to investors, which will be paid back upon the sale of the new houses. The existing dwelling will be demolished to create a selection of 3 bed townhouses, all a stone’s throw from the beach. A local builder has been appointed to carry out the works, to benefit from their local knowledge.
“Joining Sourced Network allowed us to move to larger developments much quicker and we’re amazed how fast our first project was funded!”
Chaz and Jas, Sourced Coventry
“We had 5 estate agents interested in selling these units before the project was even launched for funding.” Jas admits. “It’s new, no one has done it so close to the sea before and demand is high.” The developers invested £340,000 of their own capital into the seaside project. Out of the £1,103,000 raised via Sourced Capital, the franchisees will utilise £199,000 towards the purchase price and will use the remaining balance to cover the build costs and professional fees.
After the development is complete, the franchisees will sell the townhouses and generate a profit margin of 39%. The total timescale for the project is just 14 months.
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Author
Stephen Moss
