If you’re looking to invest in a property then the first consideration should be the type of property that is best for you to invest in, as an example, many property developers are now opting for large homes they can convert into small self-contained units known as homes of multiple occupancy. Once you’ve decided on what type of property to invest in you, you then need to locate a suitable property and have the finances in place to make it happen.
This article focuses on three main routes to finding a property, but before you get too excited, it might be worth checking out https://www.jubilee2000uk.org/ for some insight into realistic and viable ways to finance your next property. The thing is, buying an investment property should be plain sailing, but it can turn into an emotional rollercoaster if you don’t have the required finances in place
So, assuming you have the finances in place to start looking for your next cash cow; let’s take a look at the three main ways to source properties.
Find An Estate Agent
The most conventional way to find a property is to use a real estate agent which can provide incredible value in terms of the return on investment, particularly due to the convenience and possibility to have an invested (yet somewhat neutral) third party to mediate between the buyer and seller in order to assess where things such as ‘lowest offer’ really stand. A solid real estate agent is well worth the commission, however, more and more people are starting to buy and sell their homes without using a real estate agent; using property websites that connect private sellers with private buyers.
Many amateur property investors choose to head to a property auction, as they’ve heard this will be the best place to grab a deal. There are some great deals to be found at property auctions, and a great resource for finding auctions near you is https://www.auctionhouse.co.uk/. However, it’s important to do plenty of research into understanding why the house is being sold at auction. It could be as simple as a financial issue where the bank has foreclosed on the house and their corporate policy is to sell at auction, or perhaps a relative has inherited the property and wishes to sell it from a distance. These motivations are standard and most sales have an innocent motivation but sometimes sellers are choosing an auction for more dubious reasons; it’s just something to be mindful of.
Furthermore, it’s incredibly easy to get caught up in the fast-paced negotiation at an auction, where you can spend a lot more than you were initially planning to spend due to the competitive and almost hypnotic spiralling of the price as you battle to “win” your desired property. This, can therefore sometimes end up in purchasing properties above the odds – due to people getting carried away as a result of the psychology of the situation.
A better option, particularly for newbie property developers is to find sellers directly and negotiate with them one-to-one without any middleman taking a cut; be this an auction house or an estate agent. This level of negotiation can often be trickier than outsourcing the task to a real estate agent, who is more neutral and mindful to the very personal nature of someone selling their home – but presuming you have tactful negotiation skills, finding homeowners wishing to sell their property is made particularly easy with the explosion of the internet.
There’s always the “door to door” approach where you literally knock on doors with ‘for sale’ signs, build rapport with the property owners and discuss things in a friendly way – but a more efficient use of your time could be to develop a shortlist of online properties to further investigate.