Colin Warburg joined Sourced Franchise in February 2021, because he wanted to help his graduate daughter to get the training and support she needed to take over her father’s huge property portfolio and start building her own.
The two of them have now completed the conversion of an 8-bed B&B into a 20-bed HMO property in Salisbury.
Background in Property
Colin has been in property for around 20 years, with a small break of a few years, when he was running a tech company. The franchisee’s journey started when he was only a student at the university. His first project was a 6-bed terraced house, which was converted into a shared house, aka HMO.
In 2000, he sold the computing software company and got back into property with an extension and conversion of a house. Since then, he’s done many conversions and flips, which allowed him to learn the ins and outs of the property market.
During the start of the Covid-19 pandemic, Colin wanted to move to property developments, but also wanted his daughter, who just graduated from the Cambridge university, to take some small steps in property, while having someone to guide and support her.
Colin came across Sourced after watching a few webinars and got interested in the opportunity so, he contacted our Franchise Manager, and the rest is history.
More About his Recent HMO Conversion
At the beginning of the year, the franchisee was looking for opportunities to buy in the South West region. After he bought a hotel in Salisbury, he found this 8-bed B&B and thought it would be a great opportunity to convert into a huge HMO, which he would then add to his portfolio and benefit from the passive income.
The purchase price was £1.1 million, and the valuer estimated a GDV of £1.8 – £1.9 million. Colin plans to rent the rooms for £675 per month per room, which will bring him a total income stream of over £13,000 per month. Impressive, right?
Why HMO and why Salisbury?
“The reason for buying the property is partly because of what I learnt at Sourced about HMOs and how profitable they can be.” Colin shares. And indeed they are, if you choose the right location and the right property. In Colin’s case, the location of the property is only a 5-minute walk to Salisbury’s cathedral, in a city that has high demand for working professionals and minimal supply. The area is active with many amenities and shops, making it an ideal place for tenants (seasonal workers, doctors, builders etc.) who prefer a co-living space.
“The property came with planning for a HMO, so we saw how it could work as a bigger HMO. HMO is good depending on the part of the country you are looking at. HMO prices in Cambridge, where I am based, are less than bricks and mortar, based on commercial valuation. In Salisbury though, it’s the opposite. The valuation you get for a HMO is 30% – 40% higher that bricks and mortar.” Colin admits.
What Were the Challenges With This Project?
The original residential part of the property had to be doubled in size, utilising the B&B space, which meant that walls had to be teared down to create a spacious home that doesn’t feel overwhelming or crowded for the tenants. The biggest construction happened in the kitchen where space had to be made for four overs, four fridge freezers, three sinks and all the amenities that tenants look for.
What’s the Plan for the Franchise?
Colin already has a few other projects in the pipeline and is always on the lookout for new opportunities. After many years in property, Colin’s vision is for his daughter, Cindy, to step up and take his property business forward. Cindy has already started investing in some rent-to-rent and HMO projects, thinking about going into flips and refurbs and she is looking forward to diving deeper into the world of property.
Who Would you Recommend Sourced Franchise to?
“I would recommend Sourced Franchise to anyone who wants to get into property. It’s an excellent opportunity, because franchisees get access to training and support, they wouldn’t have otherwise”, Colin shares.
Our franchisees can benefit from a comprehensive and hybrid training schedule, which is delivered by property experts, covering over 10 different property strategies. Furthermore, when they join Sourced, they get assigned to a support person, with whom they can set up plans and goals, get help and guidance, and make sure they achieve their vision for their property business.
Our peer-to-peer platform, Sourced Capital, is another amazing addition to our franchise opportunity. Franchisees can take up to 100% funding for their property projects. Our loans allow you to borrow up to 70% of the gross development value (GDV), which can cover up to 100% of the purchase and work costs of your properties. *
Finally, our franchisees get access to a bespoke CRM, a property Investment app to market their deals, informational resources, help with contracts, legals, due diligence and a huge network of 150 property professionals in the UK.
To find out more on how to build or scale your property business with Sourced, download our prospectus now.
* All loans are subject to status and require formal credit approval. 70% LTGDV is the maximum loan amount. Your property is at risk if you default on a loan secured by that property.