Property sourcing is one of the most crucial steps in building a successful investment portfolio. Whether you’re just starting out or looking to expand, knowing how to find the right deal is key to achieving your financial goals.
But knowing how to source your own deal can be hard, so here’s a step-by-step guide to help you source your next property investment like a pro.
1. Define Your Investment Goals
Before you start hunting for deals, it’s essential to know exactly what you’re looking for. Are you aiming for capital growth, high rental yields, or a mix of both? Your goals will determine the type of property you should target and the areas you should focus on.
For example, if you’re looking for rental income, you might prioritise properties in areas with high tenant demand. For capital growth, emerging markets with planned infrastructure developments could be ideal.
2. Research the Market
Understanding the market is crucial to identifying a good deal. Start by researching:
- Location Trends: Which areas are up-and-coming? Where is demand growing?
- Property Prices: What’s the average price for your target property type in your chosen area?
- Rental Demand: Are there enough potential tenants to make the property profitable?
- Local Amenities: Proximity to schools, transport links, shops and employment hubs can significantly affect property value.
3. Build Your Network
Networking is a powerful tool for sourcing property deals. Build relationships with estate agents, letting agents and other investors. Often, the best deals never make it to public listings and are shared privately within these circles.
4. Look Beyond the Usual Channels
While traditional platforms like Rightmove and Zoopla are excellent starting points, they’re not the only places to find deals. Explore:
- Off-Market Opportunities: Build connections to access properties that aren’t publicly advertised.
- Auction Houses: Auctions can be a great way to find undervalued properties.
- Distressed Sales: Look for motivated sellers who may be willing to accept below-market offers.
5. Conduct Thorough Due Diligence
Once you’ve identified a potential property, it’s time to dig deeper. Evaluate the property’s condition, potential costs for repairs or renovations and its long-term viability as an investment. Key steps include:
- Inspection: Arrange a survey to identify any structural issues.
- Financial Analysis: Calculate your expected ROI and compare it against your investment goals.
- Legal Checks: Ensure there are no legal issues, such as disputes or restrictions, tied to the property.
6. Be Ready to Act Quickly
In competitive markets, good deals don’t last long. Make sure you’re financially prepared and ready to move quickly when you find the right opportunity. Having your finances in order—whether that’s through a mortgage agreement in principle or access to cash—can give you a significant advantage.
7. Consider Using a Property Sourcer
If the process sounds daunting or time-consuming, consider working with a professional property sourcer. They have the expertise, market knowledge and networks to find deals that align with your goals while saving you time and stress.
Why It’s Worth the Effort
Sourcing the right property deal can be the difference between an average investment and an exceptional one. While it requires effort, research and sometimes a bit of patience, the rewards are well worth it. By following these steps or partnering with an experienced property sourcer, you’ll set yourself up for success in the competitive world of property investment.
Looking for expert help to source your next property deal? At Donelan Property, we specialise in finding tailored opportunities for investors like you. So if you’d like to speak with one of our expert property sourcers, get in touch today to discover how we can help you achieve your investment goals with ease.
