Where you start when you are looking to start sourcing property depends on what you want to achieve.
For instance, do you want a regular cash flow of £2,000 to £5,000 a month? Or, would you prefer a lump sum of £10,000 to £20,000 every few months? Actually, maybe you’d be more interested in making £50k every six months? Everyone is different and what you’re looking for will dictate your strategy. Investing in developments, for instance, won’t bring you in a regular cash flow.
For a monthly cash flow your best bet is deal packaging and selling on to investors. However, for non-cash buyers, this can take anything from three to six months to come to fruition, so it’s a good idea to have several deals on the go at the one-time ie a pipeline of deals where some are coming to fruition while others are still ongoing.
For a lump sum income of £10,000 to £20,000, small refurbs or Joint Ventures are best. For this you need access to funds, but it can prove a profitable strategy when you have a few properties on the go at the same time. That way you will avoid the feast and famine dilemma that many inexperienced property investors find themselves in.
In order to earn larger sums of money, there is our Sourced franchise, where it’s possible to tap into 100% funding in order to fund conversions and developments. These typically take 6 to 12 months to come to fruition, but you are looking at profits of £50,000 to £300,000.
Straight tips on sourcing:
Set your targets. That could be monthly income or money banked by a certain time. Without targets or goals, you are drifting aimlessly and going nowhere.
Apply a strategy for those goals. Pick one strategy (two at the most) and learn them inside out and back to front. Take in the education, create processes and move forward. Keep it simple.
Don’t be a busy fool. Make sure you work to your targets and goals on a daily basis, rather than seek out every opportunity. If you are sourcing, there’s no point looking at properties you know won’t hit the yield your investor wants. You need laser-like focus, so that you don’t get distracted and then become overwhelmed.
Get a power team behind you. Get to know and work with people you trust in the industry ie estate agents, surveyors, solicitors, architects, builders, planning officers etc. They can tip your off about upcoming properties.
Keep your finger on the pulse. Find out where the locations with good yields are. Any regeneration coming up? Keep an eye on it. Know the type of tenants in particular areas. In other words, get to know, and keep on top of, events in your sector.
Don’t hide behind a laptop. You’ll never meet your power team if you just sit on your laptop looking at Rightmove, Zoopla and Facebook property forums every day. Go to networking meetings, call in to estate agents asking for a viewing of an interesting property, chat with surveyors etc. Let every one of your prospective power know exactly what you can bring to the table.
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Thinking of starting a sourcing business yourself? Find out how Sourced can help you by downloading our Sourced Franchise prospectus today.