It has become increasingly clear that the impact of COVID19 will continue to affect us over the next 18 months at least. This means we are going to need to adjust our business model to ensure we can continue to operate during the uncertainty.
Here’s how we are adjusting at Tomes Homes:
Our primary model is Buy, Refurbish, Rent (as a single let) and Refinance. Or BRRR.
The challenges with this model in the current climate is the last R, Refinance. It’s anyone’s guess what valuations will be 6-9 months in the future - not a great way to run a business! So how can you combat this?
When we talk about adjusting / pivoting a business model, it doesn't necessarily need to be a massive change. Just a small tweak could take a model that has heightened in risk level, back down to a sensible level of risk vs. reward in the current environment. This could make deals viable for you in a way that might not otherwise be at this time.
Pop your details in below to receive our Property Strategy Insights