How To Source Property Developments & Opportunities
Last updated 26/06/2018
It’s safe to say without securing a property development opportunity for the right price, you won't get anywhere too fast.
One can expect when buying on market to be competing with others, ultimately resulting in paying over the odds! The most successful property developers (believe it or not) tend to find properties without using estate agents… Here’s a few snippets to help you along your way:
Keep it local
Focus on an area that has strong economic outlook and learn everything there is to know about it… What’s the current housing stock made up of? Where’s the most affluent areas? Where are the offices or schools with excellent ofsted ratings?
As inconvenient as it may be, you will need to jump in your car to find property development opportunities! That pen and pencil comes in handy when writing down the addresses of potential deals, or perhaps, use the good ol’ iPhone to save ‘Notes’.
Whilst out and about in your car, stop off at the estate agency branches and go talk property…! You never know they might give you some ideas about up and coming areas yet to be taken advantage of by other developers!
There are a number of avenues you can explore that are a great source of property development opportunities but they do require you to get a bit creative.
Repossessed housing needs to be sold quickly and within a set time frame which could lead to a good deal being negotiated. Short lease properties, problem properties, those that may seem dirty or have been on the market for a long time and those close to the stamp duty threshold could all be explored as sources for property development opportunities.
A great way to source property development opportunities is to go to a property auction. You can normally get hold of the catalogue beforehand so you can do the necessary research before you enter the auction room, despite a good price it may be a problem area, or have bad neighbours which will mean it will be hard to rent out or sell down the line.
Lots of different property development opportunities might be listed; those that are ready to go, some that need renovating or refurbishing as well as land sites.
Go in with a fixed idea of the price you are willing to pay and try not to get to carried away with the theatrics of the auction. The last thing you’d want to do is enter into a bidding war that you may live to regret!
Use existing and new contacts as a source to get ahead in the game with upcoming property development opportunities. Solicitors, councillors, estate agents and other professionals will be some of the first to be aware of the new opportunities and can then pass this valuable information to you!
A professional property sourcer will have a number of property developments at any one time. Buy to lets, HMO’s (Housing with Multiple Occupancy) and development opportunities ready to go which can save a lot of time and hassle for yourself.
They will charge a fee for this service (usually 2% of the purchase price). This will need to be weighed up against the convenience. However, a professional company or individual can be a great source for property development opportunities.
Gone are the old fashioned days where you would scour the estate agent window or newspaper property pages. There are a number of new sources of property development opportunities that you can utilise to your own gain, and they’re improving all the time.