Sourcing property deals

Our principles of good property sourcing

• Find areas of supply shortage versus demand
• Source undervalued properties
• Choose properties close to amenities and transport links
• Infrastructure changes and early stage regeneration
• Where legislation can disrupt or secure position
• Reliable developers with good quality builds

Our property sourcing approach

Genesis Portfolio works with our clients to source and find properties to add to and build their property investment portfolio but above all, to make them successfully prosperous. Whether our clients want property/land to develop, houses to transform, units to lease for high yield, property to buy and sell, create multi let spaces, managing HMOs and/or adding social housing to their portfolio, our aim is to provide a diverse portfolio whilst utilising the opportunities at any given time in any given city or location.

Key drivers of demand

Job Prospects

London has continued to see increased demand because the jobs prospects are the best in the country and have also attracted a number of people from every corner of the globe, bringing a wealth of talent to the city.  However, there is always smaller returns per investment ratio in captial cities so we, therefore tend to concentrate on East, Central and Northern England.

Development of class A office space with excellent leisure facilities and high end apartments have started to bring talent to Manchester, Leeds, Birmingham and outer areas. Cambridge and East Anglia have also commenced large rejuvenation projects of airports, high speed rail links to London, industrial zones, etc.  People want places to live, work and play and these areas are offering just that.

Infrastructure changes

Some areas or regions of the United Kingdom have been out of commutable reach of the best jobs. Infrastructure changes such as HS2 & HS3, Crossrail and IT infrastructure improvements will have a positive influence on house prices because they will connect people with employment opportunities. It will be beneficial to work with Genesis Portfolio to find out first which new property developments will capture this capital growth as the market is continuously changing.

Early stage regeneration

Who has thought of buying an investment property in a certain area but didn’t because they thought it was too rough? Then regretted the decision because the area suddenly become desirable and the prices of those properties shot up. Islington, Clapham and Brixton in London or Manchester & Newcastle in Northern England were once areas for the 'factories and working classes' and considered rough. Now they are highly desirable and trendy with staggering property prices.

Student Property Sourcing

Our property sourcing capabilities make use of the student property market reports that are compiled by the large property consultancies such as Knight Frank, CBRE, and Savills as well as objective reports from the National Union of students and UCAS in order to obtain a balanced view of the market and in particular, the student accommodation market.

When property sourcing, we also look for situations where changes in legislation could have a positive impact on the supply versus demand fundamentals such as in Nottingham, Leicester and Newcastle where the Article 4 Direction has been adopted. The Article 4 Direction essentially requires special planning permission for the conversion of single-family homes into accommodation of three of more unrelated occupants, thereby limiting supply. With demand growing, it presents a good opportunity for investors.

When requested, we choose student accommodation that is in close proximity to the most popular university as well as local amenities. Students tend to like being close to the city centre as many of them have part time jobs and also like the convenience of a good location – this often has a positive impact on the price that they are willing to pay for rent.

We study the rental projections provided by the developer and compare them with equivalent properties currently available for rent on sites such as Rightmove Student Property portal as well as to see if the figures “stack up”.

Purchasing and negotiation

We are in a unique position to purchase and negotiate directly with the seller on your behalf to secure the best prices possible in order to secure a fast sale for the vendor.  

We liaise with a variety of our contacts such as independent property sourcers, estate agents, auction houses, developers and in many cases, property owners that we have sourced, identified, contacted and negotiated with directly.

Listed below is a typical scenario for either a buyer or a seller of a property in the UK market that is not exaggerated or watered down which shows the urgency needed to address the situation but, until that happens, companies such as Genesis Portfolio shall continue to offer enormous benefits to our clients in properties that can get access to and the great prices they can procure them for, quickly.

Standard property deal with Estate Agent in the UK

- Seller invites an estate agent to their home for a valuation - they give a price 'they think' they can achieve, you accept and sign an agreement binding you to them for a set number of weeks, months or even years

- Approx 48 hours later the property is advertised online in places such as Rightmove, Onthemarket & Zoopla, etc

- Estate agent arranges viewings from people that enquire about the online advert, often in block viewings and many just assessing the market ahead of potentially arranging for mortgages, etc

- Estate agent - assuming they've had interest from the public - make the seller 'offers', usually below the advertised price the seller had initially agreed with the agent as this moves the sale of the property along, giving the seller hope of a sale and the agent assurance of a closure and commission

- If the seller accepts one of the offers then within a week the sales progression starts, purely on this verbal agreement

- Around 1 month later the buyer and their mortgage lender carries out a survey on your home

- If the property passes the survey and the buyer is still happy then progression continues

- Normally 2 - 6 further months later the sale is ready to complete (depending on whether the buyer has a property to sell themselves also) all the while the buyer or the seller can pull out at any time without any notice or penalty leaving the buyer and or the seller starting the process all over again.

Length of time from getting valuation to sale completion: 6-10 months
Risk of buyer withdrawing from sale and you having to start the whole process again: 33%

Typical property deals with Genesis Portfolio

Option 1

- Seller calls us, tells us about their property and when they'd like to move out.  Process takes around 5-10 minutes

- We carry out research and due diligence and within 8 hours we offer a fixed sale price, seller accepts and enters an agreement with no tie in period

- Within 10 days a survey takes place on your home

- Approx 20 days later the property is ready to complete (can be faster if the seller requires it)

Option 2

- Our property sourcers reach out to our contacts on a regular basis such as estate agents, developers, auction houses and individual property owners looking for the best deals.

- We negotiate the best prices, terms and conditions for a property sale, lock in the deal and inform our clients immediately, usually offering up to 72 hours for interest feed back

- We close the deal with our clients on a first come first serve basis and arrange for all necessary legal and financial requirements in order to generally exchange contracts within a few weeks following the above.

Length of time from getting valuation to sale completion: 2-5 weeks
Risk of buyer withdrawing from sale and you having to start the whole process again: 5%

Design & Government planning approval 

Genesis Portfolio has over 55 years collective experience in high end Architectural, Interior and landscape design and dealing with Government departments including civil, residential, landscape, planning and conservation.

Project management and construction

We may identify a property for a client that has all the check boxes of a great investment deal but needs an entire renovation throughout in order to meet the return on investment. We can identify exactly what would be needed to bring the property to its full letting capability whilst overseeing full design, planning approval where necessary, project budget/program and scope of work tender, construction and project management all the way to handing over the keys to our client's first tenant in the property.

Leasing and property management

We directly engage with our sub contractors and agents to identify and secure the best tenants for our clients to ensure longevity, peace of mind and security with each person taking on our client's properties. We identify the needs for tenants locally and offer the best rental leases on the market to make all parties content with the deal. A win-win situation for everyone to ensure the tenant is happy to continue paying rent and looking after the property whilst our clients can rest assured that we, with the tenant, maintain the property to a high standard, thus keeping maintenance costs low and focusing on our client's return on investment is achieved on program and to plan.

Social Housing - A Study

The Big Issue

The housing crisis in the UK is a pressing issue affecting millions, particularly the most vulnerable among us. The complexity of this crisis stems from various interconnected factors, primarily the imbalance between housing supply and demand.

Supply vs. Demand: The UK is facing a significant shortfall in housing construction. To keep up with population growth and address existing backlogs, an estimated 300,000 new homes need to be built each year. Currently, construction rates fall well short of this target.

Affordability: Even when housing is available, many households struggle with affordability. High prices make it difficult for families, especially those with children, to secure stable housing.

Temporary Housing: Tens of thousands of families are living in temporary or inadequate accommodations. This situation is exacerbated by the fact that over 1.2 million households are on waiting lists for social housing in England alone.

Broader Implications:  Addressing the housing crisis is not just about policy changes; it represents a significant social challenge. The lack of stable, affordable housing directly affects:

• Health and Well-being: Inadequate housing can lead to poor health outcomes and increased stress.
• Economic Stability: Secure housing is essential for individuals to pursue education and employment opportunities.

The Path Forward:  Immediate and sustained action is essential to bridge the gap between the demand for affordable housing and its availability. Solutions will require collaboration between government, private developers, and communities to create a fairer, more stable, and prosperous society for all.

In effect, individuals willing to invest in updated properties in regeneration areas, developed  by organisations such as Genesis Portfolio, we are not only regenerating areas in the UK, we are also helping the government with their property short fall but more importantly, helping the vulnerable in our society have an affordable roof over their heads.

The Big Solution

Genesis Portfolio is dedicated to transforming the supported housing sector through strategic partnerships with various agents and developers. Together, we have invested £250 million into this vital area, resulting in the acquisition and sale of over 2,500 homes. Our efforts have positively impacted the lives of thousands of vulnerable individuals in our society.

Our Approach

We offer a balanced and thoughtful approach to the sale of social housing properties that benefit from long leases. We firmly believe that investing in supported housing represents one of the most rewarding, high-return, and safest property investment opportunities available today.

Key to Success

The cornerstone of our success is the unwavering commitment to providing support for those in need. It is essential that we partner with sincere and qualified professionals who prioritize the well-being and rehabilitation of tenants. Without this focus, the entire proposition would falter.

Quality Housing Matters

At Genesis Portfolio, we meticulously select only the best service providers, ensuring that all properties are in excellent condition following thorough refurbishment. Providing quality housing is crucial for the recovery and stability of vulnerable tenants.

Empowering Lives

The exceptional work of our support providers creates an environment conducive to positive outcomes for tenants, many of whom have only known survival. We strive to give them a genuine opportunity to thrive and lead fulfilling, independent lives.

Part of the Solution

Individuals willing to invest in renovated and refurbished properties in particular areas, developed  by organisations such as Genesis Portfolio, are not only regenerating city vicinities in the UK, we are ensuring our investors are looked after financially and also helping the government with their property short fall, but more importantly, helping the vulnerable in our society have an affordable roof over their heads.

The Results

We firmly believe that our investment framework strikes the ideal balance between security, value for money, and excellent returns. As investors first, our primary focus is on ensuring that our activities are commercially viable, sustainable, and robust.

We continuously strive to deliver our services at the best possible price point, maintaining a close correlation with market value to ensure that your investment is asset-backed.

Moreover, the lease packages we offer are unparalleled in terms of security. They feature strong covenant strength with the provider, are underwritten by long-established registered providers or housing associations, and include highly favourable terms regarding maintenance and management responsibilities.

Our Core Model

We firmly believe in the importance of simplicity.

There is a significant demand for standard single-occupancy houses from various providers, particularly in the North of England. This region offers an attractive price point, strong demand, and favourable yields.

Your investment

Our turnkey properties undergo a comprehensive renovation program before being offered to you. We price these houses as close to true market value as possible, providing the added benefit of a long-term lease with a trusted organization. This organisation not only manages the tenants and maintains the property but also covers all running costs, ensuring you receive an excellent return on your investment as the landlord.

Returns

Generally the returns for this property type will be in the region of 8-9% net, although larger properties such as HMOs  will yield higher margins.

Addressing Risks

All of our leases are insured, placing the primary responsibility for day-to-day property upkeep on the care provider tenant. Each lease is underwritten by a long-established registered provider with strong covenant strength, offering you, the landlord, added protection and confidence that the lease terms will be upheld.

This comprehensive package effectively addresses the inherent challenges of traditional buy-to-let investments. By purchasing at or near true market value, you benefit from excellent returns without any ongoing responsibilities or costs. Our approach ensures you are within the most robust, secure, and asset-backed investment framework available.

HMOs (Houses in Multiple Occupation)

Why HMO?

To enhance our positive social impact, we are expanding our services into new geographical areas and exploring alternative property types.

One of our most valuable recent initiatives has been the acquisition and development of Houses in Multiple Occupation (HMOs). These properties have become popular investment options, especially in markets like student housing and among young professionals.

However, HMOs have also been associated with poor practices from slum landlords, resulting in tenants living in substandard conditions and an increased risk of anti-social behaviour.

In our HMO developments, our service provider partners act as your tenants, with the individuals residing in the properties under license agreements. This arrangement means they do not have the same rights as tenants on assured shorthold tenancy agreements, allowing for immediate removal if someone fails to adhere to the terms of their agreement.

While this is a worst-case scenario that we rarely encounter, it underscores our commitment to maintaining high standards. We provide homes in excellent condition, equipped with modern fixtures and fittings, creating spaces that residents are proud to call home. This fosters a sense of aspiration and pride, which we believe is crucial to the rehabilitation process.

As a result, we often witness personal growth and gratitude among our residents, enabling them to move forward positively in their lives.

Main advantages of investing into a HMO

HMOs (Houses in Multiple Occupation) are widely recognized as one of the best income-generating asset types in the residential property market. However, they often come with high running costs and demanding management requirements.

By investing in a turnkey HMO that is leased to a high-quality housing provider under favourable lease terms, you can eliminate most, if not all, of the traditional drawbacks associated with this ownership type. You can still enjoy an excellent return on investment.

In summary, our HMO investment model offers returns that are difficult to match, provided as a complete package with no need for your involvement in sourcing, acquisition, development, or ongoing management. All of this is delivered within a secure, asset-backed framework.

The best part? Your investment will be making a positive impact by changing lives and facilitating the rehabilitation of individuals in need of support.

Investing with Genesis Portfolio

When you invest through Genesis Portfolio, you're purchasing an ownership stake in a property. We offer either the freehold or virtual freehold interest in a fully renovated, turnkey property development.

Each property is presented to an excellent standard and is handed over with a lease already in place with our partner care providers. As an investor, you will own the property, and the care provider will act as your tenant. This arrangement ensures you receive monthly rent for the duration of the lease.

At the end of the lease term, you retain ownership of the property and may have the option to extend the lease. Additionally, the lease is index-linked, providing potential for growth in your investment.

You can expect initial rental returns on your investment in the region of 10-11% net on some of our HMO projects.