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Target Five Property Selection Process & How We Do It

My view is that making property work is knowing when to say no, which is almost all of the time, and knowing when to say yes, with certainty. The best way to do this is to develop a rigid criteria, selection and offer process.⠀⠀
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I will share ours. As an ex-military chap, I love a process and I love a phased operation. Our selection process has 3 phases, each one more complex than the last.⠀⠀
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Firstly our SELECTION. What we are looking for. We only deal in certain locations. For the High Yield properties we hold, it is central Brighton, Hove, Portslade, Worthing and Littlehampton. These are defined on a map, down to the street. The type, mixed use, single let and HMO. Any other issues, article 4, listed or conservation, flood areas. If it doesn’t fit it is deselected at first sift. We don’t even view.⠀⠀
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Secondly is the CRITERIA. Price per square foot, rooms sizes and ratios, number of windows, parking, garden. All are defined. Some are must haves, some are nice to haves and effect the OFFER process below.⠀⠀
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The final phase is the OFFER process. This only takes place once the property is viewed and the CRITERIA logged. This process is very similar to valuing land. It starts with grading the property by location, A, B or C for its location and then by using known sales and revaluation data to create end value per sq ft, which in turn allows us a justified GDV. This is real value not hope value. We then allow for 20% profit minimum. From here we assess the price of the work on a sq ft refurb price and any other costs and fees. All of these figures create a BUY price, which we try to beat. If we dont beat it we move on!!! ⠀⠀
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If you are interested in finding out more about pur selection process and how Target Five work for our investors, please DM us or email information@targetfive.co.uk⠀

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