Investment broker

Investment broker

Investment broker for novice and experienced investors

 

We help novice and experienced real estate investors in the A – Z process in finding, scanning, filtering, purchasing, renting ready, leasing and managing investment properties. Think of this service as a “one-stop shop” for the real estate investor who knows what they want.

Who is an investment broker suitable for?

Our target group for the service we offer as an ‘investment broker’ are investors who want to build or expand their real estate portfolio and who want to be completely relieved of the entire process. And by completely unburdened, we really mean: we arrange everything. The only thing the client takes care of is the finances.

Our clients this type of service have sufficient own funds to be able to finance purchases (mostly) from their own resources The only thing the client arranges is the finances. The client must be able to move quickly and have a clear goal and be willing to trust us to work efficiently as quickly as possible. With investment properties and real estate, broader mandates are used in order to be able to bid/negotiate efficiently, manage third parties, handle business, and recruit tenants. As a customer, you always have the final say, of course.

Why VK Brokers as an investment broker?

We work with dealsourcers and through them we look for interesting real estate investments. These may be residential properties, entire portfolios or a complex where residential and office and/or retail are mixed. The focus is always on residential real estate (houses) throughout the Netherlands.

This how we roll
The process is divided into four different phases with different steps. As a customer, you decide which services you want to use.

 

Phases Service Pricing
Intake Noncommittal conversation Free
A Purchase 3% of the purchase price incl. VAT
B Project Management 2% of the purchase price incl. VAT
C Rental 1 month rent incl. VAT
D Property managment 7% of the rent incl. VAT VAT

Before we go the further we have a (free) intake

 

Intake

Noncommittal conversation
We start with an intake. First, we want to have a clear picture the goals our client has in mind, the available equity, the type of property, the time period in which one wants to invest, the need and expectations the client has.

Contract
Wij stellen de samenwerkingsovereenkomst op met daarin duidelijk onze werkwijze, zoekwens, onze mandaten, het pakket aan diensten en de kosten. After signing the contract, we will begin.

Phase A: Acquisition

A1: Search

We will actively seek suitable properties. In this we use a selection of reliable deal sourcers, our network, internet, social media, advertisements and other on- and off-market places.

A2: Review

We test whether deals are interesting. We notice the rental points, the realistic market rent, return (BAR and NAR), regulations (national and regional), permits, the health of the owner-occupier community, whether renting out is permitted, the structural issues, the legal issues and the costs of preparing the house(s) for rental. Because we search throughout the Netherlands for our clients a property is often not viewed live by us. The work is largely done from behind the desk at first. After a successful negotiation (and before signing the deed of sale) an inspection viewing will take place. If this visit shows that the real estate and the deal turns out differently (worse) than outlined and calculated, the deal can always be dissolved.

A3: Bidding

In most cases, we will present the deal to our client with a request to agree on a plan of purchase and minimum + maximum purchase price in which we would like to attempt to purchase the property. As a client, you can also (eventually) give us the mandate to make deals within agreed criteria. We could purchase under your behalve.

A4: Guiding the purchase phase
If the verbal agreement is successful, we will make sure :
  • We can view the property ourselves a.s.a.p.
  • If agreed an architectural inspection will be arranged
  • If a piece does need to be financed, an appraiser is sent immediately
  • A notary is arranged
  • All necessary documents are delivered to the selling broker
  • We check the deed of sale point by point
  • The deed of sale is signed by all parties as soon as possible
  • An appointment is made for the inspection and for the handover

Phase B: Project Management

B1: Tenure point optimization
We first arrange for a rental point opinion to be prepared by one of our regular partners.
In this, a tailor-made recommendation is drawn up which makes it clear what adjustments and improvements need to be made in order to get the property into the free sector. Often this means making improvements to the durability of the home and adding more comfort and luxury to the home. For more information on this, read this blog.
B2 Project Management

In many cases, remodeling and/or home modifications are required. Consider: installing roof insulation, replacing the glass to HR++ glass, new boiler, new kitchen/bathroom or modifying the existing one, etc.
We take care of the entire project management. We will ask for offers, make the best deals and do all the supervision with contractors, kitchen/bathroom suppliers, plasterers, electricians, plumbers, upholsterers, arrange vacancy contracts for the utilities, etc.

B3: Rental ready

The house(s) will be delivered completely rental ready, clean, styled and fit for pictures.

B4: Rent furnished (option)
If the property is rented out furnished, we will make sure that it is furnished in a smart, practical, tasteful and above all attractive way.

Phase C: The rental

C1: Rental Presentation
We ensure that our home photographer takes professional photos, 360 degree photos, video. There will also be a measurement report and nice floor plans. We always work with a professional presentation package that will last for years. Costs are included in our total price.
C2: Viewings

We make sure that the right prospect tenants are invited for a viewing and ensure that they are shown around. We can do this throughout the Netherlands because we have partnerships with other reputable real estate firms throughout the Netherlands. Suitable and interested rental candidates are extensively checked and a background check through Huurcheck Nederland follows.

C3: Rent
  • A watertight lease agreement is drawn up and concluded with the tenant.
  • A check in takes place in which a completion report is drawn up and many photos of the state of completion are taken which are kept on file.
  • The deadlines for indexing and end of lease are and will continue to be monitored.
  • Click here for more information and all the work in the hiring process.

Phase D: Management

D1: Management
After this, we take care of the management. Keys are at our location. We are the point of contact for tenants, the neighborhood, the municipality, maintenance parties and all relevant others. Our purpose: to ensure that everything for both the tenant and landlord is in tip-top shape, everything runs smoothly and to everyone’s satisfaction, and our client (the landlord) does not have to worry about his/her investment properties.

What does a full service investment broker cost?

The cost of an investment broker can vary. At VKMakelaars you choose which services you want to use. Per phase costs are as follows:

A Purchase commission 3% of the purchase price incl. VAT. VAT
B Project Management 2% of the purchase price incl. VAT VAT
C Rental 1 month rent incl. VAT
D Property managment 7% of the rent incl. VAT VAT

*This includes all hours, all presentation costs and all promotional costs.

Other expenses
Furthermore, you should think about the following costs:

-Costs appraiser €1400,-
-Honorarium mortgage advisor €3000,-
-Transfer tax: 8% of the purchase price
-Costs of the dealsourcer: varies from 2-3% of the purchase price
-Notary fees ( ± €1500,-)
-Costs for an technical inspector (± €400,-)
-Rent points advice report(±€400,-)
-Costs BENG label (±€350,-)
-Cost of renovation
-Decoratioon for the house
-Unexpected costs

Cost summary (example)
View the calculation example with all costs and returns here (belonging to the real-life example below).

Interested in becoming an investment broker?

Are you interested in an investment broker or would you like more information about this? Call us at 023-2052296 or 06-24640822 or press the contact form below and will contact you within 1 working day (without obligation).

 

Investment broker example from practice

For a client we are purchasing 2 apartments in North Brabant. Total purchase price €350.000,-The homes are structurally sound, there is a healthy owners association, renting is allowed, the homes have enough potential to be lifted to the free sector and the expected market rent per home is sufficient to achieve an interesting return that fits within the objective of our client.

The area is interesting There is a large city in the area with a college, a university, large international employers and good infrastructure. It is also a pleasant living environment that can be expected to remain popular in the future.

Immediately after the verbal purchase, we will visit the homes to verify that there are no hidden defects or peculiarities. No structural inspection will take place because these are apartments in a well-maintained apartment complex with a good MJOP and sufficient financial resources.

Our customer travels with us in this case. All is well and is green light to start the purchase deed signing. After everything has been formally signed and finalized, we get to work right away:

The customer wants to start financing part of it. We maintain close contact with the mortgage broker, have an appraisal done in rental condition and have a rental point opinion prepared.

From the rental point advice combined with our own advice for making the homes attractive to rent, we make a plan and start requesting quotes for such things as 2 new kitchens, new high efficiency boilers, new finishing floors, painting, upholstery, etc.

We also draw up a plan for suitable furnishings and decoration.

On behalf of our client we are present at the key transfer and immediately afterwards the contractor starts followed by the kitchen supplier, upholsterer and our styling expert. An EPA advisor is also engaged to draw up the new mandatory energy label required for renting. The house will be completely clean and ready for rent on photo and video by our media partner, 2D and 3D floor plans will be made, catchy texts will be written and the house will be offered on several rental websites.

We conduct viewings of interested parties in the property and select the top 5 most suitable candidates. These candidates are checked (via a background check) and a choice is made about the best candidate per property.een keus gemaakt over de beste kandidaat per woning.

We also complete each rental file with all required documents that the tenant must provide. We ensure that the owner-occupier association gives us formal permission for the rental. We prepare legally valid leases and have the parties sign them.

We then send a payment instruction to the tenant for the deposit, rent and service charge. We take care of the check in with the tenant and make sure that at this check in a very precise (with many pictures) recording is made.

Once the tenants are seated, we remain their point of contact and manage the property. This includes: all communications, collection and processing of rent payments, chasing rent arrears, annual rent indexations, remedying defects, coordinating maintenance, point of contact and authorised representative at the VvE (taking part in meetings) and monitoring contact deadlines (in connection with rent protection).

Finally, we ensure that we prevent vacancy. Once a tenant has given notice (or we give notice), we try to ensure that the property is re-let with no or as short a vacancy as possible. This also means that we do the check-out, deal with any defects/damage caused by the tenant and have necessary maintenance/repairs carried out before the new tenant moves in (an ‘MOT’).

Cost summary (example)
See here the calculation example with all costs and the return (belonging to the above practical example).

 

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