Using a specialist property sourcer to find investment properties can offer several benefits to property investors.
A good sourcer will be an expert in locating properties that match your investment criteria and can save you time, money, and stress.
Here are some of the key advantages of using a specialist sourcer to help build your investment portfolio:
What does a Property Sourcer do?
A Property Sourcer works on behalf of an investor or a group of investors with the aim of securing highly profitable deals for them.
The sourcer is paid a fee to find suitable properties for an investor and to negotiate the best price with either an estate agent or directly with a vendor if the property in question is not on the market
They will excel in finding the ideal property for their specific client, often in a quicker and more cost effective manner than an individual investor would be able to do alone.
A good Property Sourcer will clarify the level of service they will provide. This will include how often they update you on the process and the fees involved. There are different levels of service, ranging from a basic deal sourcer who will secure the sale with an agent, but the investor will then be required to do everything else, right up to a fully hands off turnkey service, where everything from the legal process through the refurbishment and management is handled. Naturally, the price differs dependant on the level of service required.
Why use a property finder?
The main benefit of using a Property Sourcer is they have access to a greater volume of deals than you would be able to find alone. If they are a serious professional, they will have systems setup and in some cases employ people to find undervalued, potentially profitable properties.
Access to Off-Market Properties
As mentioned above, good property sourcers often have access to properties that are not publicly listed. These off-market properties can be hidden gems, providing investors with less competition and potentially better deals with less people competing for the sale.
Time Savings
Searching for investment properties can be a time-consuming process, involving extensive research and property visits. Property sourcers can streamline this process by screening properties, presenting you with only those that meet your criteria, and handling negotiations and paperwork on your behalf.
Network of Industry Contacts
Often referred to as a ‘Power Team’ a successful sourcer will have a tried and tested group of professionals who will take you from sale agreed right through to completion and then into the refurbishment and in some cases future management of the property. These include specialist conveyancing solicitors, finance brokers, architects, surveyors, contractors , project managers and letting/ sale agents. The hard work is done for you.
In summary, the leg work is taken out of the sourcing and negotiating process for you. A good sourcer will act in your best interests as the buyer and use their expertise to find the best properties and negotiate the best price.
A good deal sourcer will want to build long term lasting relationships with investors so make sure you take the time to understand each other’s goals to see if you are in alignment. You will want to make sure that they are running a professional business and they are active in the market and the area you are looking to invest.
What can I expect to pay?
It varies depending on the property type, your strategy, the potential returns and of course the geographical area.
However, typical 2-4 bed investment properties will command a fee in the region of £3k-£6k, in the north and Midlands areas. London and surrounding areas you may expect to pay slightly more in relation to the higher purchase prices.
What do I need to be aware of?
You must do your due diligence. A lot of newbies to investing start with deal sourcing as it can be a good way to build an income without a significant upfront cost. You need to ask all the right questions in order to establish trust and build a relationship. Also, deal sourcers must be registered with HMRC as an Estate Agent, with the ICO to comply with GDPR and with a property redress scheme to comply with the law.
Ask for a sourcers credentials and if they don’t have them, you should walk away. While using a property sourcer can provide numerous benefits, it is essential to choose a reputable and experienced professional who understands your investment goals and has a track record of success in your target market.
They should also be able to demonstrate recent successes with clients similar to you and your requirements.
Can I work with North West Property Investments to help me achieve my investment goals?
We offer a bespoke service to a limited number of exclusive investors with a focus on sourcing, renovating and managing high-cash flowing properties.
We aim to build long term, mutually beneficial relationships with our clients, with a strong emphasis on repeat business.
We work with a small number of serious investors this year to help them purchase and develop highly profitable property deals, in high demand areas, in and around our core investment area of the Fylde Coast. We also offer a bespoke service in South Manchester.
To read about our offer in more detail please CLICK HERE
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