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PLPrime Link EstatesNorth East Property

28 April 2026 · 7 min read

How We Stress-Test Every Deal Before It Reaches an Investor

Most sourcing deals fail not because the numbers were wrong, but because the assumptions behind them were never tested. Our process is built to expose weak assumptions before an investor ever sees the deal.

Every deal starts with comparables. For purchase price we use sold prices on the same street or immediate area, adjusted for condition — never asking prices. For rent we require let agreed evidence, ideally from managing agents active in that exact pocket.

Refurbishment costs come from contractor pricing, broken into a works schedule with a contingency line. If we can't price the works confidently, we say so and treat the estimate as a risk, not a fact.

Cashflow is then stress-tested: higher interest rates than today's, realistic void periods, management fees, insurance, and maintenance provisions. A deal that only works at today's rates with zero voids is not a deal — it's a bet.

Finally, every deal needs a credible fall-back exit. Flips are tested as rentals. Serviced accommodation is tested as a long let. If the downside scenario loses money, the deal doesn't go out.

The result is fewer deals presented — and that's the point. Investors' trust is built by the deals we decline as much as the ones we share.

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