Property Sourcing For Beginners

Property sourcing for beginners involves learning the market, building a strong network, whether it’s with investors or a reliable agency, defining your investor's criteria and finding deals below market rate through various channels.

Here are a few beginner tips to ensure that you can hit the ground running.

Educate Yourself

No one is going to do it for you, and it takes time, energy and commitment to learn and understand the market, not just the current market, but trends from the past, as this information can help guide you on where you think the future of the market is going to be.

Starting with the fundamentals, such as analysing property values, deal analysis and everything in between. Once you understand the fundamentals, you can move on to finding your niche within the market, not only to stand out amongst competitors.

You also need to consider the different investors that are available; not all of them want the same thing. For example, some investors want cash flow, long-term capital growth and beyond. Understand what your investor wants; this will help you build strong business relationships.

Build Your Network

Connect with estate agencies, solicitors, other investors or a property investment agency like CityRise. Connections introduce a range of advice but could introduce you to new business opportunities and other investors that might fit within your niche, and so forth. Contacts are so key in this business that using multiple channels to connect with others is key. 

Master The Search

Limiting your search for deals through one channel is a huge waste of opportunity; other portals to find deals, such as auctions, local knowledge, direct marketing and online marketing, are all channels that you should utilise as and when you can.

Analyse Package Deals

Thoroughly check every potential property for value and risk. Through aim for significant discounts such as 25% below marketing value or properties where value can be added, such as renovation, extension or through other amenities that are well sought after in modern and old properties.

Package Deals

Consider introductory offers and package deals that offer value and incentives for investors. This also simplifies and is a more attractive deal to sign off on. Package the deal with clear data, which includes ROI, costs and any potential.

The more data and simplified these are, the quicker and more attractive a collaboration with investors will feel and will likely turn to you for future deals. But this also depends on the investor, as some prefer more detail, so refer back to point one in doing the research on your investors.

Compliance

Included in your research, you need to ensure that legal compliance is always met, such as registering with a redress scheme and following AML rules, amongst several other legal considerations. 

You don’t want to find yourself accidentally breaking the law; it not only looks extremely unprofessional but will be unforgiving in the long run. Therefore, complete your own research on the legalities with property sourcing for investors and so forth.