Being aware of how exciting and lucrative the property industry can be, Chris Richardson started looking for options to get into the property game. Rather than investing in his first buy to let or HMO, the experienced business owner and entrepreneur was interested in alternative ways to start making money from property.
Having weighed up his options, Chris decided to join Sourced Franchise, a hybrid between a training provider and a professional network, that offers much more than training to its members.
Apart from training, the Franchisees get access to ongoing support, up to 100% funding for their own projects, marketing support and much more. “I didn’t have any property experience before joining Sourced,” Chris admits. “It really appealed to me to get support from people that have got that experience.”
Initially, the franchisee treated his Franchise as a part-time venture, which would allow him to get into the property industry and slowly scale his business. That remained true, until he came across a four-story office building for sale, located in a quiet cul-de-sac of Bournemouth’s town centre.
The franchisee was instantly struck by the property’s potential. It came with a planning permission to convert the building into 14 self-contained apartments and its central location made the investment an excellent serviced accommodation opportunity.
All Chris needed was funding, which was provided by Sourced’s very own peer to peer lending platform, Sourced Capital. Unlike traditional funding options, the loans are based on the GDV (gross development value) of the projects, allowing Franchisees to borrow up to 100% of the purchase and build costs!
With the support from Sourced Head Office, Chris carried out extensive due diligence on the project, put a plan of action together and in no time, the contracts were exchanged.
The project was launched on Soured Capital under the name ‘Exchequer Grange’ with the loan amount of £1,202,875, offering investors a return of up to 12% pa. The funds would cover the purchase and conversion of the office building. The Exchequer project was fully funded within 4 weeks of being launched, having appealed to numerous cash, pension and ISA investors.
Once the works are completed, the franchisee’s plan is to sell the serviced accommodation units within an 18-month period, generating a profit margin of 30%. The appointed contractor is currently carrying out the works on site and the project is en route to be completed on schedule.
Build Your Property Business with Sourced
• Based on a business model that works.
• So much more than a property training course
• Up to 100% funding for every profitable property deal you find
• No office, staff or experience required
Download our prospectus to find out more
Author
Sam Clayton
