As UK house prices soar, witnessing a significant increase of 12.6% over the year to October 2022, it’s more crucial than ever to hone your investment strategy.
In the fast-paced and lucrative world of property investment, the ability to source high-potential properties is a game-changer.
That is where sourced property comes in. A strategy now at the forefront of successful property investment.
In this guide, we dive into the fundamentals of property sourcing and understand the different sourced property options you can avail of.
Harness the power of sourced property, maximise our expertise, and get ready to drive your investment portfolio to new heights.
Key Takeaways:
- Go through different sourcing strategies for property investment.
- Understand the role of a professional property investment consultation for better results.
The Fundamentals of Sourced Property
The art of sourcing the right properties is key to success. So, what exactly does sourced property mean?
Simply put, a sourced property has been identified and secured on behalf of an investor by a property sourcing agent or company. Like treasure hunters, these agents are experts in finding properties with high investment potential.
Whether it’s properties below market value, off-market properties, or those with high rental yield potential, sourcing agents know where and what to look for.
However, just finding these properties isn’t enough. A key aspect of property sourcing involves conducting extensive due diligence. Sourcing agents scrutinise legal documents, conduct surveys, assess the property’s condition, and evaluate the local market to ensure the property presents a solid investment opportunity.
Property sourcing, therefore, is much more than merely identifying investment properties. It’s a comprehensive process involving searching, analysing, negotiating, and securing properties on behalf of the investor. It takes a deep understanding of the property market, sharp negotiation skills, and an eye for the potential to succeed in this arena.
As we delve deeper into sourced property, it’s important to understand that there are different methods of sourcing these valuable investment opportunities.
Different Sourced Property Investment Options
Every investor has unique goals, risk tolerance, and investment capacity; the sourcing strategy should align with these parameters. Here are some popular sourcing options:
1. Direct to Vendor
Going direct to the vendor involves identifying and negotiating with property owners personally. This strategy eliminates middleman costs and allows for direct communication with the owner. However, it requires considerable research and negotiation skills to ensure you get a fair deal and the property doesn’t have hidden issues.
2. Estate Agents
Working with estate agents can help you tap into their vast network and local knowledge. They can provide valuable insights into the property market, values, and potential returns. However, their fees can add to your investment costs, and their interests may not always align with yours.
3. Property Auctions
Property auctions can offer the opportunity to secure properties below market value. However, they also carry risk – auctions require quick decision-making and offer limited opportunities for comprehensive property inspections.
4. Online Platforms and Databases
Online platforms and databases aggregate property listings from various sources, providing many options. Advanced search filters, market analysis tools, and user reviews can assist in identifying potential investment properties. However, it’s crucial to corroborate the information with physical inspections and due diligence.
In essence, each strategy comes with its own set of advantages and potential pitfalls. It’s important to understand these as an investor to make informed decisions. But what if there was a way to capitalise on the advantages of each method while mitigating the risks?
This is where Pluxa Property comes into play.
How Can Pluxa Property Help You?
Navigating the sourced property landscape can be complex and time-consuming, particularly if you’re juggling it with other responsibilities. This is where Pluxa Property steps in, acting as your personal property sourcing expert.
As a professional property sourcing company, Pluxa Property takes the hassle out of finding investment-grade properties. Our team of experts, armed with local knowledge and industry experience, scours the market on your behalf.
We utilise all sourcing strategies, from direct vendor deals to estate agents, property auctions, and online platforms. We don’t just find properties, we conduct thorough due diligence. After ensuring every property, we recommend aligns with your investment goals and holds solid potential for returns.
Negotiating property deals is an art, and at Pluxa Property, we’ve mastered it. We negotiate terms, prices, and even financing on your behalf, ensuring you secure the best deals possible. With Pluxa Property, you get the benefits of all sourcing strategies without worrying about the associated risks. Contact us now to learn more. You can also read reviews given by our previous clients.
FAQs
What are the potential risks associated with different sourcing strategies?
Property sourcing strategies can yield high returns but also come with potential risks. Here are some risks associated with various sourcing strategies:
1. Direct to Vendor: With this approach, you’re dealing directly with property owners. While this cuts out the middleman, you must conduct all due diligence and negotiations. The risks include buying a property with legal issues, such as disputes over ownership or undisclosed liens, or purchasing a property that requires more repairs than you initially estimated.
2. Estate Agents: While estate agents deeply understand the property market, they work for buyers and sellers, which can sometimes lead to conflicts of interest. Agents may pressure you into making a quick decision or push properties that aren’t ideal for your investment strategy.
3. Property Auctions: Auctions can offer great deals but also carry significant risks. You often need to make quick decisions, which can lead to paying too much. Additionally, there’s usually a limited opportunity for a thorough inspection, which means you might end up with a property that requires substantial and costly repairs.
How can online platforms and databases assist in property sourcing?
Online platforms and databases have revolutionized the way property sourcing is done. They offer different tools and resources that make finding and evaluating potential investment properties easier and more efficient. Here are some ways they can assist in property sourcing:
1. Access to a Wide Range of Listings
2. Advanced Search and Filtering Capabilities
3. Comprehensive Property Information
4. Market Analysis Tools
5. Community and Reviews
Peter Juhasz is the founder of Pluxa Property, the biggest property investment company in UK and Group CEO of AIP Capital Group and a property investment expert with over a decade of experience in the UK market.
He built a successful property company using innovative cashflow strategies like Serviced Accommodation and HMOs, scaling to 200 units in four years.
Peter leads a team specializing in property and business acquisitions across various sectors. A former co-host of “Cashflow With Property,” he shares his expertise in real estate investing and business scaling.
He is committed to continuous learning and helping SME owners and investors maximize their returns, driven by his passion for empowering others to achieve their financial goals.
To learn how Pluxa Property can help you in UK property investment, contact our experts.
