Hello Medway Investors,
I’m pleased to announce the launch of a brand new property networking event The Property Success Network, and the first event will be held at Buckmore Racing Track in Chatham on 18th November. The event starts at 6:30 pm and I’m excited about this event! You can grab your ticket for just £10 here.
Today’s blog post is a quick one to hopefully help people understand some of the nuances and intricacies involved in sourcing residential property investments. Generally, sourcing is hard work, and you need to put in the graft. This is something that I have been involved with as a director of HS Property Sourcing Limited, my property sourcing company. Over the years I have sourced several property investments for investors, and project managed the refurbishment works conducted afterward.
It’s a competitive market and this is very often a sticking point for investors of all levels of experience. I know from personal experience how sourcing the right property is a big factor in maximising profits and whilst it’s all well and good saying this, a harder thing is successfully achieving it.
If you want to learn about sourcing in-depth during my two-hour discovery sessions which can be booked here for just £247, however, given that it is such a crucial area I thought it would be helpful to share a couple of my top tips with you that should help as you progress on your investment journey.
Here’s a couple of top areas to consider when sourcing your property.
Estate agent links
One key area when it comes to sourcing a property is having excellent links with local estate agents.
There’s nothing better for you (and the agent) than being able to go to a valuation appointment or respond to a hot new lead by saying they have a buyer in mind!
How do you build these links in such a competitive market? Well, that’s the trick and one place to start is by networking. I tend to find that the majority of independent estate agents are fantastic at getting around the networking circuit, so let them know what you are looking for and be proactive when it comes to considering deals.
It also pays off to focus on just a handful of agents and build up that relationship with them. For example, I sometimes get off-the-market deals sent over to me before they go live from agents I have connected with and personally taken the time to get to know over the years.
One final tip is to be memorable. For example, have you recently completed a purchase? Did you send the agent some form of gift as a thank you? This may seem a little corny, but it really does help you stand out and become more memorable when the next deal comes along!
Direct to vendor deals
Direct-to-vendor deals can be lucrative, but they can also be difficult to source. A direct-to-vendor deal means that you source the property without any middle man involved.
This is the ‘holy grail’ of deals because you can often negotiate a favourable price based on you providing a realistic solution to the buyer’s problem.
Common reasons why a vendor may not list with a normal estate agent include: that the vendor may need a quick sale due to a major life event; the vendor may be facing impending repossession; the property could be non-mortgageable.
An investor could get a preferred price because selling through an auction or other means could mean the vendor will take more time, cost more in fees, and not be guaranteed. Sometimes, the vendor wants to sell the property with tenants in situ to avoid any void period with unpaid rent in case the sale falls through they won’t be stuck with a vacant property.
The vendor might also be worried about spooking tenants by listing with a normal estate agency. Therefore, the scenario really is a win-win for everyone.
How do you get a direct-to-vendor deal? Well, through letters, hunting dilapidated properties and doing your research, social media, networking, and generally keeping your ear to the ground! Remember, it’s often who not what you know.
I personally think that auctions can sometimes be a little over-rated, however, you can occasionally find the odd gem. The key thing about auctions is to have your ceiling price and stick to it as all too often I see investors getting carried away with their bidding and very quickly eat into their profits.
Take time to review the auction catalogue. For example, Clive Emerson publish their catalogue online and always make sure you do your research on the property including carrying out a viewing along with reading that all-important legal pack.
When going to an auction, the key thing to have in the back of your mind is… there will always be another deal if you don’t get the one you are shooting for!
I trust that you found this article helpful, and I also hope to see you soon at our November event! I cover this and more in my two-hour discovery session that you can book for £249 here. Other than this, the best way to reach me is by messaging me on LinkedIn.