Sourcing Philosophy
We felt it important to share our sourcing philosophy and methodology, as well as our due diligence process. Why? Because in our own experience as investors prior to starting NestBridge, frequently we ended up wasting significant amounts of time on opportunities that were presented to us, that turned out to be inaccurately analysed, or that sourcing agents did not have control of. We do the graft, so you don't have to.

We have a very specific deal assessment criteria to approve an opportunity into our pipeline. The property deals that we promote, fall into the following verified categories:
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Flips, (buy-renovate-sell) at 25%+ Return on Capital Employed (ROCE) using 25% deposit and 1% interest pcm as a bridging metric. In order to be confident on this figure, we of course account for all buying costs, holding costs (time in the deal effecting the cost of finance), refurbishment and all selling costs. We found in our experience, these details are often an oversight by sourcing partners. You know therefore that our ROCE is as accurate as we know true to be.
As London and the South East specialists, it is difficult to find deals that suit the 'BRRR' method due to current market interest rates. Therefore, if we present a BRRR deal, it will either be low on leverage or a very efficient HMO. We stress test these deals at 2% (or 3%, depending on market conditions) above current mortgage interest rates for our analysis.
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For land and developments, we will only present deals that meet a minimum of 18% return on cost, to the best of our evidence and knowledge.
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For turnkey opportunities, these will either be 15% below market value based on true comparables, or 7% gross yield - competitive for London and the South East.
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Our process includes:
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1. Data-Driven Insights
An Analytical Approach: We employ sophisticated analytical tools and methodologies to tap into the vast array of data available in the property market. This enables us to identify undervalued properties, emerging markets, and prime investment opportunities.
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2. Relationship Building:
Networking at Its Finest: Our extensive network within the property sector – from agents to builders to legal experts – ensures that we have our finger on the pulse of the latest trends, off-market deals, and unique opportunities.
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3. Comprehensive Due Diligence
Risk Mitigation: Every opportunity we present undergoes a rigorous due diligence process. From inspecting property conditions, scrutinising comparables and time in the deal, to understanding the local property market dynamics, we ensure that our recommendations stand up to scrutiny.
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4. Hyperlocal Focus
The Devil is in the Details: We believe that the best investment opportunities are often hidden in the details. Our team are located in specific territory and trained to understand micro-markets, ensuring we can identify opportunistic assets overlooked by other agents.
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5. Long-Term Vision
Beyond Immediate Returns: While short-term gains are attractive, our philosophy is rooted in seeking sustainable, long-term appreciation for our clients. We aim to source deals that promise not just immediate profitability but also future growth.
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6. An Adaptive Strategy
Staying Ahead of the Curve: The property market is dynamic, with its ebbs and flows. Our team is constantly evolving, adapting, and innovating our strategies to navigate these shifts, ensuring our clients always stay ahead of the competition.
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7. A Client-Centric Approach
Your Goals, Our Blueprint: Every investor has unique objectives and risk profiles. We take the time to understand these intricacies, ensuring that the deals we source are in perfect alignment with your financial aspirations.
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8. Ethical Considerations
Integrity Above All: Our commitment is not just to our clients, but also to the communities we operate in. Every deal we recommend is sourced ethically from vendors, often securing creative deal structures in order to gain a 'win win'. If we are not the best route for the vendor, we recommend to our 'open market' partners.
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The property market is a vast landscape of opportunity, and our deal sourcing philosophy ensures that we navigate it with precision, integrity, and a commitment to excellence. At NestBridge, we don’t just source deals, we create legacies.
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