The foundation of any property investment strategy is going to lie with your skill at property sourcing which can be slow and cumbersome. Building your spreadsheets from Rightmove can be very time-consuming so today we look at four alternative ways to source property which will help you grow your portfolio much faster.
Highlights
[0.48] Buying Property At Auction [2.05] Working With A Property Sourcer [3.38] Property Crowdfunding [5.22] Investing In Repossessed Property
Introduction
For today’s quick start property investment guide we’re going to look at four, sure-fire ways to source property deals fast.
If you are rich on time – meaning that you have enough time to dedicate to finding the right property deals – you can find fantastic investments and negotiate great deals with motivated sellers.
If you are short on time then these four, quick and easy methods are going to help you leverage the time that you do have…
to find those very best potential property deals – sourcing the very best opportunities.
1. Buying Property At Auction
The first things to consider are property auctions.
Auctions are a very simple way of buying property, in your local area or whatever your target town or city might be.
How Often do Property Auctions Happen?
In most areas, there will be an auction at least every eight weeks. In more popular, more populated areas they might happen every six weeks.
Auctions will give you a wide variety of property deals. There you will find everything from development properties – to ready-to-go tenanted properties – all the way through to speculative land sites.
Auctions can offer the full spectrum of opportunities in property.
And, if you are looking to save yourself time, all you have to do is open the auction catalogue in advance and shortlist the properties that are going to work for you based – area, price range – your chosen criteria.
That way you can really shorten the length of time it takes to find your deal.
But, there’s a caveat.
There are properties that sell at auctions that won’t make great investments
There might be a problem with the title, with the property, the location or the neighbours.
As with any investment you need to apply due diligence when looking at an auction property.
That said, auctions can certainly be a sure-fire way of finding excellent property deals in your local area.
For More Information On Buying Property At Auction See:
2. Working With A Property Sourcer
The second thing is to consider looking at working with a property sourcer or property investment company.
You don’t need to re-invent the wheel. You don’t need to spend hours and hours on RightMove or Zoopla, trying to find a diamond in the rough – the best opportunities in a given area.
Very often – and in most areas of the UK – there will be a property investment company or property sourcer close at hand.
It might be a one-man band. It might be a small company. It might be a large investment company.
But, they’ll all be able to provide you with great, local opportunities.
The property type might be different depending on the company or individual you speak to. After all, people tend to specialise – work in a niche.
So, the leads you get might be for buy to lets. They might be for houses in multiple occupation. They might be for development opportunities.
When it comes to working with property there are a lot of different strategies you can follow.
By working with a property sourcer you will cut out a lot of time.
This is because, more-often-than-not they’ll have property deals that are ready to go.
If you have the right skills and training you will be able to look through the available opportunities to see what is right for you.
…If the location is right – if the price range is right – if the rental yield is right.
With the RIGHT skills you will be able to see potential in the property and have an idea as to what you can do with it.
Using a property sourcer is going to save you a lot of time and get your portfolio growing quickly!
For More Information On Property Sourcing See:
You can save a lot of time by speaking to a property sourcer or a property investment company.
You just have to see what they have available and if their offers are a fit for you.
Often, this approach can work very well.
The Cost
Property sourcers and investments companies are going to charge a fee so you need to make sure that the fee is factored into your overall investment strategy.
Do your sums and wrap all the costs into your investment projections. Look at the price range, the purchasing cost, the rental yield, the capital growth AND factor in your fees – and you might still find fantastic investment opportunities.
You will have spent a lot less time sourcing the property yourself and your portfolio will grow a lot faster,
3. Property Crowdfunding
The third thing to consider is crowdfunding.
This is quite a recent phenomena in the UK but it’s a great way for people with a smaller investment pot to get started with property investments.
So instead of going out there and sourcing your own property deals, spending time trying to find the right opportunities, crowdsourcing companies will condense investment opportunities into one platform.
You are then able to use this platform to invest in property, often with very little startup capital.
Some companies even let you invest with as little as ten pounds although most ask that you invest a thousand pounds or more. However much you have to invest you should be able to find a company that is happy to oblige you.
At Property Investments UK, we have spent the last six months looking at all the companies that offer crowdfunding opportunities in property.
We wanted to find a company that was the right fit for us to partner with. Of course, it was important that we found a company with great deals and great returns but we also wanted to find one that fitted with our ethos; our values and approach.
We are happy to say that our search as ended with us partnering with one primary Crowdfunding platform,
You can learn all about this platform, the property deals they have available and the returns they deliver by clicking here.
Investing in property with crowdfunding can be great for helping you achieve real diversity with your property portfolio.
Using this investment method can also help you grow your portfolio quickly.
With crowdfunding, the property investment cycle can be completed a lot faster. When you go to a crowdfunding property portal and invest in a property, the property is often ready to go in just a couple of weeks. When compared to the months you can be waiting for a more traditional property deal to go through (not to mention the time it takes to find the right deal) you can see why crowdfunding can be so attractive.
Property Crowdfunding: Summary
Crowdfunding property can be a great way to add diversity to you property portfolio.
It’s a much faster way of investing in property than the traditional methods. You can start to see returns in weeks rather than months.
It requires much less money to get started, meaning that crowdfunding allows investors who would not normally be able to afford to invest in property to get started building a property portfolio.
4. Investing In Repossessed Property
Photo credit: Rept0n1x This file is licensed under the Creative Commons Attribution-Share Alike 2.0 Generic license.
The fourth thing to consider is buying up repossessions.
Working with receivers and repossessed property stock is still one of the quickest ways of growing a portfolio.
Property, like any asset class, follows supply and demand.
If you have a property being sold by a receiver – probably a mortgage company – they HAVE to sell that property.
They don’t want to keep hold of the property over the long term. If their client has defaulted and they’ve taken that property back, then they will more-than-likely HAVE to sell that property within a set time-frame.
The sale might be through an auction. It might be sold by the receiver. It might be sold by an estate agent.
By whatever channel the property is being sold more-often-than-not it HAS to be sold within a set time.
Because of this not only can you buy repossessed property very quickly you can also get it at a very good price. This is because the vendors of such properties are motivated sellers. This is to say that they very interested in selling those properties as fast as they can.
For these reasons, there are often loads of great opportunities to add repossessed properties to your property portfolio.
The Downsides To Investing in Repossessed Property
Now there are some down sides to repossessions.
In the UK, gazumping can be common.
This is where you get an offer agreed on a property but another buyer comes in and buys the property out from underneath you.
This happens most often when you are buying a repossessed house from an estate agent. It’s less common when you are buying directly from a vendor or at auction, simply because the transaction takes a much shorter amount of time.
So let’s say that you are buying from an estate agent and you have 4-6 weeks left to exchange on the deal. This gives another buyer ample time to swoop in and buy the property instead of you.
The problem is that in that time you could have spent a lot of time on the property and you could have spent a considerable amount of money as well.
It’s not idea, but that’s the way the business operates.
Investing in Repossessed Property: Summary
There are risks with buying up repossessed properties but they can make great investments.
Given how motivated the sellers of these kinds of property can be, as a buyer, you can buy them fast and more importantly at a very good price.
For More Information On Repossessed Properties See:
Putting It All Together
Hopefully, this article will help give you a few ideas as to how you can source property faster and more efficiently and get you growing your property portfolio.
We’ve given you four starting points to get into property investment which are:
▶ Auctions ▶ Property Sourcers ▶ Crowdfunding ▶ Repossessions
If you’ve any questions please leave them in the comments section below. We’re always happy to help.
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In there we cover a range of different property strategies to help you get started on building a long-term property portfolio or creating a cash flowing property business.
We also look at ways to increase your return on investment with any of the properties you may be considering and we also have a couple of cheat sheets and downloadable documents.
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