The Opportunity

In 2014 Reditum Capital was approached to take a share of the WeBuyAnyHome business through a £20m revolving debt facility. The company was turning over a comfortable £3m and since then has grown to a £40m turnover due to our flexible debt facility. Over the last five years, the business has successfully established itself as the UK’s leading genuine ‘quick cash’ buyer of residential real estate. 

WeBuyAnyHome.com is one of the only genuine cash home buying companies around and the largest in its sector. The company is owned and managed by property professionals with over 250 years’ combined experience in buying homes. Their reputation for dealing honestly and fairly with their customers, and offering them the very best price they can for every property is second to none.
With over 5,000 purchase enquiries every month, WeBuyAnyHome is in demand and constantly generating more opportunities. 2018 saw the purchase of over 300 properties at an average purchase price of c£100,000 across England and Wales with an impressive profit on cost of c20% achieved on each property and a net margin of 4%.

The process is also quick and seamless, purchases are typically made between 2 and 7 weeks and sales within 17 weeks. This works out a lot quicker than your conventional home sales process which is why WeBuyAnyHome is favoured by people in financial difficulties, divorce or relationship breakdowns and work relocation.

“The UK’s leading cash buyer of residential property, with sales of £46.76m in 2018.”

Strengths

  • Wide management experience
  • Strong market brand awareness
  • Low fixed cost base
  • Guarantee to better offers given by competitors
  • Visibility on marketing return–on average £5,300 spend for each property purchase
  • Trade mark protection

Weaknesses

  • Limited capital base to take advantage of opportunities
  • Brokerage operations are not exclusive
  • Sector has poor reputation
  • Additional Stamp Duty now payable on purchases (which has led to a small reduction in margins)

Opportunities

  • Raising additional funding to expand market share
  • Slower market dynamics in UK housing market creates additional value for product
  • Increasing automation of operational process with investment
  • More targeted advertising
  • Grow number of financial services introductions
  • Possibility to broker sales at lower margins than WeBuyAnyHome can do itself (only 2% of leads are converted to sales within WeBuyAnyHome)

Threats

  • Multiple competitors – although a large number are intermediaries of various kinds rather than genuine cash buyers
  • Negative association with practices of a competitor – although the business enjoys a particularly strong reputation for sound business practices
  • Rapid reduction in UK house prices – although margins have proved to be highly resilient in the face of market downturns
  • Loss of key staff – although employee retention levels are particularly high

Sold.co.uk

WeBuyAnyHome operates closely with its sister business, Sold.co.uk. Should a prospective client be unwilling to accept the market valuation offered by WeBuyAnyHome, they are asked whether they would welcome an introduction to Sold.

Sold is an online estate agent, but with a difference. It exists to address the needs of a broader audience than that of WeBuyAnyHome: those seeking a speedier property sale than is typically available through the conventional estate agency channel (six to nine months on average).

Accordingly, consumers are offered 90-95% of market valuation as an ‘agreed achievable price’. It is able to do so because it has access to a large network of willing, cash-rich or mortgage-ready buyers and investors seeking what they regard as attractively priced properties.

Sold does not charge the seller commission and absorbs their legal costs. In return, it absorbs any margin in the eventual sale price over and above the ‘price guarantee’. Sold currently receives in excess of 200 referrals per month from WeBuyAnyHome and achieves a success rate of c55%.

2019 will see significant marketing investment put behind the Sold.co.uk brand, thereby enabling it to source instructions from the wider marketplace rather than solely from WeBuyAnyHome.

Get in touch

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