Sources of Income (3)
Other sources of income.
There are other sources of income and this depends on scalability of the team and also type of investment. The largest of which is income derived from commissions from property sales. Not only can that boost the letting pool (if an owner occupier sells to an investor) but the commissions derived from property sales in a property bull market can often be an extremely significant source of extra income. The revenues from sales however, are not evaluated as part of the investment.
Other services such as extra gardening, repairs and maintenance, bond cleaning services also form a good portion of extra income. These are all evaluated as part of the business income stream and will be amplified via the valuation multiple 5-6.5x when it is time to exit the project.
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