Buy to Let Property Sales – Partnering With Estate Agents

by Mark Alexander

8:13 AM, 24th July 2013
About 6 years ago

Buy to Let Property Sales – Partnering With Estate Agents

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Buy to Let Property Sales – Partnering With Estate Agents

Earlier this year we spotted an opportunity to set up a buy to let Estate Agency. However, due to lack of resource (time) very little has been done other than a dozen or so sales on behalf of developers, plus setting ourselves up with The Property Ombudsman Service and organising Professional Indemnity insurance to keep ourselves legal of course.Buy to Let Estate Agency

The reason we haven’t got around to growing the buy to let Estate Agency business is that our passion is facilitating the sharing of best practice amongst landlords and letting agents on the Property118 forum which I set up just over two years ago. Prior to that I was a commercial finance broker and I’ve been a landlord since 1989.

The opportunity is a very simple one. Nearly 200,000 landlords and associated professionals subscribe to our daily newsletters and engage on the Property118 forum. Some of these people are no doubt in the market to buy more property. It occurred to us that most properties are sold with vacant possession, however, for landlords that can be a bit of a nightmare as both the vendor and the purchaser both experience costly void periods.

Rightmove and the Zoopla Property Group portals are ideal to sell properties with vacant possession but if a landlord wants to sell or buy a tenanted property these portals are far from perfect as there’s no search facility for buy to let property. Furthermore, their interfaces are not geared up to show rental yields, returns on capital invested, costs of letting etc. At Property118 we have created a landlords calculator to work all of these things out

As we haven’t got time to source properties to sell, never mind to prepare sales particulars, do floor plans, arrange viewings and progress chase offers through to completion, our idea is to work on a split commission basis with other agents.

We will showcase properties on the Property118 forum and link to them in the daily Newsletters. Enquirers will be landlords who may well already own properties in the area, hence for agents who partner with us on this venture, all referrals will be good leads for future sales and letting opportunities as well as prospective purchasers of the property which is being marketed.

From the landlords perspective, they will be presented with properties which are already let and will have no void periods and perhaps most importantly, without any buyers premium attached to them. The sales particulars will include details of the tenancy including:-

  • rent currently being paid
  • profile of the tenant
  • time already in the property
  • management fees currently being charged
  • other expenses relating to the management/maintenance of the property

This information, together with an indicative financing quotation will enable us to calculate not only rental yields but the cash on cash equivalent annual returns after all costs including mortgage, insurance, lettings and management, a sensible maintenance budget and where appropriate any ground rents or service charges. This will enable investors to compare cashflow returns on their money to the returns they are currently receiving elsewhere on their investments. The potential for capital growth is obviously a primary reason for people to invest into property too of course.

We will not allow this activity to overwhelm what we do here at Property118, therefore, we will cherry pick the properties we want to promote based on those which we believe make sense to buy as investments.

It is unlikely that we will be in a position to accept instructions directly from landlords to sell their properties due to the lack of infrastructure to provide a sufficiently professional service, i.e. floor plans, viewings, for sale signs etc. Therefore, any such enquiries will be referred back to the agencies we end up partnering with. Landlords are, of course, also welcome to introduce us to any agencies they are already working with as we will not get tied into any exclusive contracts. Our independence is vitally important to us.

I would like to have a chat with any agents who see some mileage in this opportunity. I have some ideas on splitting commissions but I am very open minded at this stage as the project is very much in its infancy.

Mark Alexander - Your Property ConciergeIf you would like to chat please comment below, email me  – mark@property118.com or call me on 07834 754 223.

Regards

Mark Alexander – founder of Property118.com



Comments

andrew townshend

17:11 PM, 24th July 2013
About 6 years ago

good idea, i look forward to viewing , just be careful which estate agents you team up with, i find the larger the estate agent the less trust worthy they tend to be. i will not name them but i have been fobbed off and refused viewings on prepossessed properties, i conclude from this they have people lined up for these and do not want the competitive bids.

Simon Ward

6:00 AM, 25th July 2013
About 6 years ago

Reply to the comment left by "andrew townshend" at "24/07/2013 - 17:11":

great idea ....but agree with Andrew Townshend re carefully selecting EA partners

Bobby Ijaz

12:20 PM, 25th July 2013
About 6 years ago

HI mark

I am a single independant estate agent based in Clapham, Happy to discuss JV proposal in the Buy to Let sector.

Kind regards

Mark Alexander

12:24 PM, 25th July 2013
About 6 years ago

Thanks Bobby, please call me.

Elaine Hassall

19:30 PM, 25th July 2013
About 6 years ago

Hi Mark, great idea, we are just selling a flat, going through very slowly but as it's empty we are losing money on it, would have loved to sell it with a tenant in place. We have another two properties to sell with excellent tenants so this maybe an option for us in the future

Howard Reuben CeMap CeRER

15:34 PM, 26th July 2013
About 6 years ago

An excellent 'niche' idea - word of caution though, a number of lenders require vacant possession on completion / purchase.

Mick Roberts

18:33 PM, 26th July 2013
About 6 years ago

Mark, I'm away at moment, so contact me when I get back about 6 August if u like.
I am gonna be selling some of my properties soon, good yields with tenants in who's stopped years & want to stop many more years, so a few properties for u to start.
Plus I know quite a few of the local Agents, Area managers etc. who do listen to what a common lad like me has to say, so if I tell 'em u r ringing, they will take u serious from the off without u having to sell yourself.
I've bought dozens off 'em over the past 15 years & they are keen to sell 'my dozens too'.

Sacha Martin

0:00 AM, 27th July 2013
About 6 years ago

Hi there

We are in Surrey Downs so everything in and around Epsom and would be interested in added value/getting involved in this venture, great idea!

helena dolisznyj

19:38 PM, 11th November 2013
About 6 years ago

Reply to the comment left by "Elaine Hassall" at "25/07/2013 - 19:30":

great ideaI Mark!

Im on a buying spree at the moment! and wanting to buy a few more!.

Has anyone looked at refurbing converting office into flats ect? as planners seem to allowing this more often.

Have you ever heard that you now have to NHBCS ON CONVERTIONS NOW? As well as building Regs!.
For them to be mortgable for resale.
I try and buy within 20 mile radius of my home!.
have refurbed over 23 properties in the last 4 yrs, kept and rent 11 and refurbing 4 at present!
I have to say I LOVE IT!.
but I do seem to have a good Reg team to pull onto the different jobs!
so I don't get ripped off!!!
they soon get to know im no dumb blond!, ha ha lol! but they do try!


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