4 ways to purchase a property
Changing strategies from project management back to deal finding can be a funny thing. The actions you need to take are completely different, and while managing projects can feel like a whirlwind, deal finding feels more like a marathon; repeating the same steps over and over until you get to the finish line - completing on amn offer. This takes consistency, patience and
The following 4 ways are the processes we will use to get us there, and we thought you might find them useful too:
Auction - Project Broughton
First of all, know the expectations:
Deposits are non-refundable and if you win the bid, be ready to pay the deposit immediately, so ensure your financing is in place before entering the auction room.
Legal Documents: Get a solicitor to look over these for you. Speedy due diligence is a must.
Stick to your predetermined budget, bid confidently, and be prepared to walk away if the price exceeds your limit.
Post-Auction Due Diligence: Conduct detailed surveys and inspections after winning to uncover any hidden problems.
Completion Process: Finalise the purchase by settling the remaining balance and taking legal ownership. Typically, buyers are required to exchange contracts on the day of the auction or shortly afterward, often within 28 days. Nothing like a fast turn around if you are organised and prepared.
If you’re happy with all of that, sign up with the Auction Web pages of the companies you would like to purchase from. We used Venmore auction house, but there are many available.
Sourcer - Project Alvanley
A property sourcer is someone who makes a living setting up property deals and then selling them to investors. Their job is to play the middleman, making the deal better for both the buyer and the seller.
Time Saver: Skip property searches with pre-vetted deals from sourcers.
Optimised Deals: Sourcers negotiate for favourable terms for all parties based on your set criteria.
Efficient Negotiations: Sourcers handle talks on your behalf, saving time and presenting deals that only match your criteria.
Networking Boost: Connect with industry pros for future investment avenues.
They come with a price tag. You pay for their time and can often pay to be on their VIP investor list. If you are looking to scale quickly they are a great asset to have in your team and if you get a good one they are worth their weight in gold.
Open Market - Project Belvedere
Your network is your net worth, Property is People, etc etc. And this could not be truer when it comes to finding deals on the open market. you have to build relationships with the agents, make sure you’re at the forefront of their mind and prove to them that you will do what you say you’re going to do. That means they can trust you to complete on deals and making them more likely to consider you in the future.
Variety is the spice of life and the open market has lots of different opportunities. But brace for a time-intensive process and be careful not to fall into the analysis paralysis trap (we have been there and done that).
You can engage sellers in negotiations, potentially securing a deal in your favour. However in high demand areas there is competitive bidding which can often force prices up.
Limited Bargaining Power: In high-demand areas, your bargaining power might take a hit.
Lose half your life on Rightmove. Like tinder for us property developers.
Direct to Vendor-
Buying directly from the vendor is like skipping the middleman and heading straight to the source. However it requires a well planned process and consistency. We have a robust system and have had some close successes, one property a while back turned out to be Amy’s old college tutor- small world (spoiler alert- we didn’t get the property in the end because someone offered considerably more, but it was great to reconnect).
Pros:
Cost Efficiency: Slash unnecessary costs associated with middlemen or agents, potentially getting a better deal.
Speedy Transactions: Cut through red tape, speeding up the buying process without delays from third parties.
Personal Connection: Forge a direct relationship with the seller, fostering transparent communication and a smoother transaction.
Flexible Negotiations: Enjoy more flexibility in negotiations, as there are fewer layers between you and the decision-maker.
Cons:
Limited Market Access: Missing out on properties listed through agents, potentially limiting your overall options.
Negotiation Challenges: The direct approach may involve more hands-on negotiation, requiring a strategic and informed approach.