Reading Time: 2 minutesHaving worked in the construction industry for many years, James has helped many people to turn their property dreams into reality, very often allowing them to generate a healthy profit margin in the process. Just like many other experienced builders, James wanted to start developing for himself.
James had all the knowledge and skills on how to convert, build, refurbish, alter and so on, but he needed funding to get started. He started researching his options and he came across Sourced, which offered exactly what he needed.
Soon after completing his initial franchise training and learning how to structure and package property deals effectively, James began the hunt for his new project. In no time, he discovered an ideal conversion opportunity: a detached bungalow that could be converted into a 4 bedroom house, satisfying the demand for larger properties in the area.
Sourced Franchisees get access to funding via Sourced’s very own peer to peer lending platform. 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!
The funding allowed James to borrow the funds he needed to complete the project and generate a profit margin of 21% on sale of the converted property. James has now sold the property off-plan, on the same day it was put on the market and he is looking to complete the works on schedule.
James discovered the opportunity and passed it to Sourced HQ for review. He knew straight away that rather than trading the deal on to an investor in exchange for a sourcing fee, he wanted to carry out the conversion himself and benefit from the profit margin, while gaining development experience.
With the help of the Sourced Capital Team, James did his due diligence, crunched all the numbers and packaged the deal as a loan investment opportunity – allowing him to obtain funding via the peer to peer platform. The project was fully funded in just 5 minutes after launch.
2 weeks after funding the project, James put it on the market, hoping to sell it off-plan. The project once again proved to be a success, and the house sold off-plan on the same day it was put on the market, despite difficult market conditions caused by the coronavirus outbreak. What a success!
What is Sourced Capital?
Sourced Capital is a UK leading property Peer to Peer Lending Platform.
Investors can invest instantly online from £250 and get a return of up to 12% pa. All loans are secured by the registered first legal charge against UK property. Investors can choose to invest with their cash, ISA or pension, picking which projects suit their financial goals. Visit sourcedcapital.co for more info.
Capital at risk. Regulated by the FCA. Investments are not covered by the FSCS.
To find out more about the Franchise Opportunity, click below.