From zero experience to unlimited potential: Meet Gabe and Vanessa.
Despite starting with no background in the property industry, they joined Sourced and quickly embarked on their first project—a 6-bed HMO conversion funded by us.
Now, they manage a growing portfolio of six HMOs.
Their Background
Before joining Sourced in May 2020, the duo had no experience in property, apart from attending a few networking events. Gabe had built a career in video production, working on TV programmes and now he owns his own studio.
They first started to dip their toes in property with £20,000 in savings, aiming to manage projects independently. However, an initial setback in their first HMO project led them to realise the need for additional support to succeed.
That’s when they came across Sourced.
Introduction to Sourced
After meeting with Sourced in early 2020 and considering their options during the COVID pandemic, the duo joined the franchise with a clear goal: to build an HMO portfolio.
They saw this as a new opportunity to achieve their investment objectives and create a more stable, long-term cash flow.
Gabe says ‘’The training was a real eye-opener, covering everything from the basics of running a limited company to a whole bunch of strategies for dealing with properties. We dove into important stuff like how to get funding, understanding rules, and finding good property deals.’’
This led Gabe to initially start sourcing properties, which allowed him to generate some quick cash and helped him come to grips with the basics of property first.
He goes onto say ‘’Something totally new to us was sourcing — we had no idea it was a thing, but the course showed us how to do it and even hooked us up with contacts to get started.’’
Once they got into the flow of things, this is when they began their HMO journey.
Their Property Journey
From day one, they worked with their dedicated Support Manager for deal analysis and on-site strategic support, whilst also taking full advantage of both online and face-to-face training.
This led them to find their first project – a 6-bed HMO conversion in Barrow-in-Furness.
Thanks to our funding arm of the business, Sourced Capital – a peer-to-peer funding platform, they were able to borrow funding for both the purchase and conversion costs.
The project was completely stripped out, converted, and refitted to a high standard, aimed at professional tenants.
This left them with a healthy profit of £31,500 from their first project.
The Financials:
▪ Total Loan Amount: £124,000
▪ GDV: £200,000
▪ Loan to GDV: 62.4%
▪ Loan Term: 8 Months
Commenting on the project, they state “The support and knowledge of the HQ team and support staff was excellent. Where most other platforms offer sales training and not much else, Sourced’s support services were exactly what we needed to get my business up and running.”
Other Projects
Their other projects include converting a 3-bedroom HMO into a 4-bedroom HMO with private bathrooms, targeting hospital workers. This property brings in £2,500 in gross rent and £1,400 in net rent each month.
Another 3-bedroom HMO was similarly upgraded for contractors, earning £2,000 in gross rent and £1,100 in net rent monthly.
They also acquired two properties for £50,000 each. After investing £30,000 in renovations to make them both 4-bedroom HMOs, their combined value rose to £140,000.
Post-renovation, each property is expected to be worth £110,000. Additionally, they secured a contract with SERCO guaranteeing a monthly income of £2,200 for seven years.
Their Future Plan
After sourcing a couple of properties out a year, which pays for their monthly fees, both Gabe and Vanessa are looking to elevate their game by tackling a larger project, such as a conversion of flats.
How to Find Out More
Whether you’re starting out in property or if you have an existing business or portfolio, we have a track record of success in helping people achieve their financial dreams.
Our package works with you. Choose what you need, then take advantage of it, all with the knowledge that everything else is waiting for you when you’re ready to use it.
Download your copy of the Sourced Franchise Prospectus to find out how Sourced can help you.
Author
Sam Clayton
