Property sourcing could be finding property for a particular buyer, then selling it on to him or her, all nicely packaged (i.e. negotiations and deals all done). Or, it could be simply sourcing the property, then looking for a buyer to sell it on to at a later stage, in line with what you’re looking for (i.e. so that you have made a decent profit in the process).
In this respect, property sourcing is a great way to make a lot of money in a short space of time. Certainly, compared to other property investment strategies, it has to be one of the quickest ways of making money via property. However, if it was that easy to make large wads of cash in such a limited timescale, then everyone would be doing it. Luckily for us and you, they’re not.
The reason property sourcing isn’t overly-subscribed when it comes to listed occupations is because it’s not all that easy to do. You need a number of things behind you in order to achieve a decent profit from sourcing. The most important would be having a strong team of interested individuals in the property world.
Essential individuals to have on your property sourcing team
Estate agents are great people to befriend. That’s because they get to learn first-hand about any properties coming on to the market. So it’s a good idea to introduce yourself and let them know your specialist niche i.e. renovation properties, HMOs etc.
Likewise, conveyancers can help by pointing you in the right direction of clients who may require a quick sale. Other investors, landlords, anyone in your networking group, in fact, can pass on details of properties which aren’t for them, or that they simply have no time to look at. If this is the case, you can return the favour when you find yourself in a similar position.
You will no doubt already be familiar with the big property portals out there – the likes of Rightmove and Zoopla, for example. Then there are local estate agent websites, which are definitely worth a browse too. With respect to the former, there are so many properties listed that it could take you days to scroll through them all to find what you’re looking for. And that’s where keyword search comes into play. Look for auction properties for refurbs or corner for properties with a garden, potentially large enough to build another property in (and sell on to a developer or self-build individual).
Other excellent websites to check out from a property sourcing point of view are:
- Propertydata – to find out what similar properties sell and rent for in specific locations;
- The Land Registry – this outlines what type of property it is, how many bedrooms etc;
- EPC register – this tells you the size of a property in terms of square footage, its condition and how economical it is to live there;
- Auction websites – you can research properties prior to auction.
The best tip we can give you though, when it comes to property sourcing, is to concentrate on one or two particular areas – and become skilled in those fields. You’ll find after a while that you will have the contacts and knowledge, to hone in on those deals immediately.