Now that the FSA has announced it will regulate the Sell and Rent Back (SRB) industry on 1st July we, like many others, have been considering our options.
Basically, the FSA will require you to become regulated if you advertise a rent back option, advise or negotiate a rent back service, or you buy a property and rent it back to the seller.
Several enterprising people have suggested various creative solutions for “hiding” SRB transactions - like renting back to Mrs Smith after buying from Mr Smith. Whilst this might initially fly beneath the FSA radar, what if Mr/s Smith sees the FSA’s planned high profile SRB advertising campaigns, or becomes disgruntled at some later date and reports you to FSA? A fine or prison sentence is highly likely.
Most investors that I have spoken to have already moved away from SRB - instead buying property with vacant possession. Remembering that, unless you become FSA Regulated, you cannot even advertise a rent back service... what do you do if you come across someone who is insistent that they be allowed to rent back?
I can offer a solution, if anyone should be interested.
If you have seen my posts on this forum over the last few years you will know that I take immense satisfaction in helping people who wish to sell their home quickly and remain living there by renting back. As a distinction apart from many other SRB operators, I think first of helping these people, and then how we can conduct the transaction in a manner that will sustain our business to allow us to help more people. This is why I have now committed my company to becoming FSA Regulated for SRB transactions from 1st July.
For those of you who are unaware, my company is a commercial enterprise employing a full management team and staff, and it has been operating throughout mainland UK since 2002. We have expanded our operation, and now have all our ducks lined up in a row – we probably already satisfy FSA Regulations (no-one knows for sure, as FSA has not yet released their final draft).
For those of you who haven’t read the FSA’s latest draft, I can tell you that the initial and ongoing compliance requirements are incredibly “intense”. Fortunately, because we already trade as a commercial enterprise with significant practical experience of the SRB industry, because we have just sourced significant funding, and because we have been in contact with the FSA and its advisors - we are confident that we will be successful in gaining regulation on 1st July.
Anyway... I mentioned I have a “solution” to offer... With immediate effect, we are now able to take “leads” from any investor who has a client wishing to rent back. In return we will provide you with an online submission system with real-time finder’s case tracking, and a finder fee payable to you upon our successful completion. We are already geared up for thousands of leads per month and 100+ deals per month (we have, for the last couple of months, been testing our case tracking system with two major lead providers who have given us exclusive and semi-exclusive rights to their leads).
Leads do not need to have been qualified or researched (they can be raw enquiries), but they do need to contain detailed information, and the enquirer agree to 75% of OMV (more info on our website below). Leads, for the first couple of months, must be located in England or Wales (we’ll be taking Scottish leads very soon), and we’ll happily take leads even if they’re not rent back cases.
Also, coming soon, in readiness for FSA Regulation... we will be able to license you to advertise a “rent back” service when passing those leads to us. This should increase the number of enquiries you receive, and the number of finder fees you could potentially earn from us.
If you’re interested in working with us as described above, please visit our online Finders system and register so that you can provide leads to us, and track your cases... finders.buyhouse.co.uk
Wishing you well,
Alan
Buy House