Keeping investors in the loop

At Sourced Capital we’ve been working hard to improve our communication with investors and have put a team in place to ensure that you are kept up to date on the projects that you have invested into.

For some investors, they are happy to sit back and wait for their money to come in at the end of a project loan term. For others, they want to follow the project step by step, to understand what their money is being spent on, when and where, but also to learn about the different steps our borrowers take in different types of developments. We like to call it – Earn and Learn. Not only are investors getting their returns on their investment, but they can also learn about property throughout the process, should they wish to.

The different types of updates you may get include:

  • Drawdown statement
  • Monitoring surveyors report
  • Video update
  • 360 tours
  • Image/ roundup update
  • Repayment statement

Drawdown Statements

As an investor, you will receive this document once the project has been drawdown, providing you an overview of the project. This statement will include the following information:

  • Drawdown date
  • Loan term
  • Returns
  • Capital invested
  • Repayment date
  • Security

Monitoring Surveyors Report

If the project you have invested into has a lot of works to be carried out (for example a new build development like the Upper Hoyland project), then there will be a build schedule which will be agreed at the due diligence stage before the project funding has been raised. The Sourced Capital team will request a monitoring survey report before releasing any funds.

Monitoring surveyors are appointed to protect our investor’s capital. In essence, their role is to monitor the progress of the project and approve the drawdown of funds.
Drawing on their experience of building surveying, construction project management and cost management, they undertake a range of activities that reduce the short-term financial risk and seek to ensure the long-term benefit of the completed project.

There will be an initial report, followed by interim reports throughout the project. These reports will:

  • Monitor construction progress with reference to both the programme and the cost plan
  • Monitor the quality of the work being delivered by the contractor and their appointed sub-contractors
  • Approve the interim payments in line with the drawdown schedule
  • Ensure compliance at all stages
  • Approve Practical Completion of the project

Video Updates

On larger projects, Sourced Capital will sometimes take the marketing team to the site to record a video to show the progress. A video can really highlight where the project is up to and can give an investor real insight into the development and what stage it is at. It’s great to see projects come to life.

360 Updates

Dependant on the project size and exit strategy, sometimes borrowers will have a 360 tour of the property created, to show the progress of the property or the end product. Using technology in this way can really show potential buyers of the properties just what it looks like and provides a digital tour – especially in recent times with COVID-19, when the digital world has been more important than ever. Here’s an example of a 360 tour from the High Street, Hull project.

Image/ Round up

In between monitoring survey reports (if the project has them) the Sourced Capital team speak to the borrowers regularly and will get photos of the sites and will even go to visit the sites, to make sure everything is on track. The Sourced Capital team will share these updates via the Sourced Capital platform on the updates page as a pdf with a short paragraph.

Repayment Statement

Similarly to the drawdown statement, the repayment statement is something that investors receive to provide an overview of the project. This statement confirms that a project has been repaid.

As a registered member of Sourced Capital, you can go into each project and view all its updates – whether you’ve invested or not. Having a look at projects and their updates can give you a taste of what you will see when you might invest into your next project. All you need to do to view a project’s updates is:

  1. Register (if you aren’t already an investor)
  2. Log into the Sourced Capital platform
  3. Click a project on the projects page
  4. Click on the updates tab
  5. View all the updates for that project

Keeping you in the loop - project updates

Investors of each project are emailed when there is a new project update. If you’d like to receive extra updates or would like to see a particular type of project update more regularly, please get in touch with us, we love to improve the experience for our investors.

Read more: How to create a balanced investment portfolio 

Location, Location, Location

The type of property investment strategy that Sourced Capital’s borrowers choose to embark upon is often very much location dependent. It is essential for borrowers to consider their exit strategy and their target market and their wants first before they even start looking at any properties.

Standard buy to let investments / Flips for singles, couples and families

One/ two bedroom houses and new build buy to let apartments, for example, tend to fare better in urban areas, like large towns and cities. That’s because they’re often preferred by young professionals and couples, who enjoy being within close proximity to restaurants, bars and other nightlife entertainment spots. An example project which a Sourced Capital borrower is currently working on is the office conversion to apartments in High Street, Hull, or a similar project is the Observer Building, Wigan.

Families, on the other hand, are more likely to choose a larger house with three to four bedrooms, a garden, and somewhere in a far quieter, suburban location. They will also be looking for key amenities, like nearby parks, good schools, and decent transport links into the town centre. Low crime stats will also feature highly in their search. Wellhouse Lane, in Sheffield, was a project that was repaid to investors in 2020, which is a perfect property for family living – subsequently the property got snapped up the same day it went onto the market.

Retirement complexes and holiday homes

Developments such as care homes, luxury retirement apartments or holiday homes are also strategies that some developers may focus on, especially those that are tucked away in rural locations like the countryside, or smaller seaside resorts. Having said that, you will also find these in the form of serviced apartments, in cities popular with tourists for weekend breaks. This includes London, Edinburgh, Newcastle and Glasgow.

The Exchequer Grange project in Bournemouth, had the potential to become care accommodation, but since the borrowers have decided it would make a perfect serviced accommodation investment and have changed their exit strategy. The property in Scarborough, Columbus Ravine has recently had a video update which shows the ins and outs of this serviced accommodation refurbishment project which is on the market to investors.

Upmarket serviced apartments for young professionals

Cities are also popular with property investors looking for high yielding investments. New build serviced apartments in London, Manchester, Liverpool, Edinburgh, and Glasgow have all done well in this respect – especially those located in newly-regenerated docklands areas, where there are clusters of employment such as IT hubs and media centres. But Birmingham too, with its proximity to the capital and improved commuting links via HS2 is proving lucrative for investors, as is Reading, Norwich and Bristol.

HMOs for students and young professionals

Houses of Multiple Occupation (HMOs) fare well in cities where there are universities nearby. The likes of Oxford, Cambridge, St Andrews, Glasgow, Edinburgh, Cardiff etc. all meet a student’s expectations – although modern student pods are another investment opportunity that many overseas investors are looking into today. There are two reasons for this; firstly, HMOs in the UK are very heavily regulated and many local authorities are rejecting applications for HMO licenses if they believe there are already too many of these in a particular location. Secondly, students themselves tend to veer towards the more modern purpose-built pods.

HMOs can, of course, have young professionals as tenants. London, in particular, is a city where there are thousands of such properties – but then house and apartment prices in the capital are too high for most young professionals and couples to buy, so they are often forced to rent in shared houses. And while a shortage of housing remains, this will continue to be the case.

Lea Road, in Gainsborough, has been a project that Sourced Capital borrowers have been working on to convert a 4-bed terrace into a 6-bed HMO. There is a demand for high quality rooms in the area, with limited competition, making the area a perfect fit for this strategy. Now that the borrowers have completed the refurbishment, their next step is to rent the rooms. This way they can achieve a commercial valuation so that they can refinance and keep the property all within the loan term.

All mapped out

We’ve mapped out some of the Sourced Capital projects to show you that our borrowers are spread all across the UK. You can see our current projects in blue and the projects in the pipeline are in orange. The Sourced team are working hard in the background on the due diligence of new projects, with some great ones coming soon. Keep an eye out for updates and when projects will be available by signing up to our emails or keep an eye on our social media channels.

Sourced Capital projects around the country

Project Complete: Wellhouse Lane, Sheffield

The Wellhouse Lane project launched in February 2020. The borrowers of the project were looking for a raise of £297,500. The plan was to sell the property within a 12-month period, generating an estimated profit margin of 21%.

Situated just a short walk from the local town centre on a quiet road in Penistone, the plot of land was purchased with a view to build a 4-bed detached house. Penistone had seen strong growth over the previous 5 years in housing prices, boasting a 21% increase in house prices during this period.

Once Sourced Capital put this project through its rigorous due diligence process, it was accepted to raise the funds on the platform. Listed in February for investment, with a return for investors of 9% with a 2% bonus on investments of £20,000, the project was funded in just 5 minutes.

After months of hard work, Sourced Capital is pleased to announce that all investments into the McCrorie Place project have now been repaid in full, along with an average interest of 11% per annum.

Sourced Capital has repaid £317,581.25 to investors*, after a total of £297,500 was raised, a healthy return for investors in such a short period of time.

Peter Firth, an investor of the Wellhouse Lane project, spoke with Sourced Capital to talk about his experience investing with our platform. You can watch the video interview below.

Stephen Moss, Managing Director of Sourced Capital said: “It’s great to match our investors with great projects. The borrowers are a part of the Sourced Network, meaning that they have gone through rigorous training and have ongoing support from the Sourced HQ team who are property experts, providing an extra layer of security for investors. Despite COVID-19, there is a high demand for projects like Jamie’s as they are of good quality.”

Future Projects

Sourced Capital currently has a number of exciting projects in the pipeline currently and these will soon be available for funding through our platform. All you need to do is follow the link and register your account. You can get set up in less than 5 minutes and you will then automatically be added to our mailing list so you can keep up to date with upcoming projects.

Alternatively, if you’d like to read more success stories from investors, you can take a look at the Sourced Capital blog for updates.

*Capital at risk. No FSCS protection. investment is only suitable for sophisticated and high net worth investors. Past returns are not a guide to future returns.