One of the wonderful tings about going down the property sourcing or deal packaging route is the varied types of deals that you can do.
So let’s cover them off one by one for you.
These types of deals have been my bread butter for more than 20 years and I have a large buy to let portfolio based in the North of England. These Buy-to-let properties are an appealing option for many investors, offering a steady income stream from tenant rentals with a more hands off approach. Property sourcers identify these opportunities by considering factors such as the property’s location, potential rental yield, and capital growth prospects. In this role, they reduce the legwork for the investor, streamlining the property search process that can often take a lot of time.
Some of these deals can be found on Rightmove – and I know people on the forums say “You cant find a deal on Rightmove” – but they’re just plain wrong.
An investor maynot have the time (nor the energy) to keep looking on Rightmove, and it’s still quite easy to find some pieces of gold that others have overlooked.
Refurbishment projects involve properties in need of renovation or repair, usually sold below market value due to their condition. These can offer substantial returns if managed correctly. The expertise of a property sourcer in this realm is invaluable, as they can identify viable projects and may even manage refurbishments if they have the experience in that area.
What you’re looking for here is “the worst house on the best street”, and properties that are old, ugly and smelly work great too. Adding value to hese old unloved properties can mean there is plenty of upside to make some decent money.
Land Development Opportunities
For investors with the desire to engage in property development, sourcing land opportunities is a great way to do it. Property Sourcing agents can find suitable land plots for commercial or residential development, considering factors such as local planning regulations and potential profitability.
For example, a large house on the corner, often has land to the side of it. If you can get the property, you can split the title, keep the property and sell off the land to a developer.
Like I say, property has so many things you can do with a little bit of knowledge and imagination.
Houses in Multiple Occupation (HMO) Properties
HMO properties, are residences shared by multiple tenants, and they often yield higher rental income than single-occupancy rentals. Property sourcers help identify suitable properties that meet HMO regulations, are outside of Article 4 areas, and provide the highest possible return on investment.
There’s a move to converting housing into HMO’s, from the very big, through to smaller 3 bed terraces, with the lounge changed in to bedroom 4 – I call these “Mini Mo’s”.
Commercial property sourcing involves finding suitable locations for businesses, such as offices, retail spaces, and industrial buildings.
But not only that, you can do “Commercial to Residential” where you’re changing the business use to a residential use. A couple of my high end penthouses in Leeds are converted from offices above an old bank right in the heart of Leeds City Centre.
Sourcers use their market knowledge to find properties that match specific requirements.
In rent-to-rent arrangements, the investor rents a property from the owner and then sub-lets it to tenants, usually aiming to make a profit on the margin. Property sourcers can identify the most suitable properties for such deals, often managing the entire process from negotiating the initial rental agreement to finding sub-tenants. As a landlord, rent to rent deal sourcers are frustrating – literally every time I go on openrent to rent one of my own properties, we get 10’s of rent to renters telling me of this amazing way of renting my property out. Come on rent to renters – you need to step up your game and be different from all the other rent to renters !
Serviced Accommodation Deals
There is potential for a HUGE amount of income through Serviced accommodations, such as holiday lets or short-term rental properties, as they offer potential for high yields due to their flexible rental arrangements.
Property sourcers find suitable properties, typically in desirable locations with high tourist traffic, and may also help manage bookings and maintenance.
Servied Accomoodation is very labour intensive and you need a person to be very hands on to manage these.
In the UK property market, the role of a property sourcer is integral to navigating the varied deal types and helping investors to source their next deal.
By conducting comprehensive due diligence and using their market knowledge and experience, these professionals can connect investors to the best opportunities across the spectrum of the property sector.
However, as a note of caution, it is important for property sourcers to ensure they are compliant with relevant legal requirements and industry regulations.
In doing so, they contribute to a transparent and ethical property market.
Just finally, some of these are more hands on than others for the investor, so it really comes down to finding out what your investors needs are before you start looking.
Too many proerty sourcers and deal packagers go out to find a deal, find one, and then can’t sell it on as they have nobody lined up.
So find the investor, and source to order – it makes life much easier when you’re first getting started.