Sourcers need to know both the lifestyle and financial ambitions of investors in order to get them the best deal. That means building up a rapport, understanding fully what type of future their client envisages and being able to articulate that. It’s at this point too, that the phrase ‘people person’ comes to mind.
Investors have different aims; some may be looking for a high yield investment, so would benefit most from putting cash into a HMO or corporate let. Others may prefer the consistent return of social housing tenants in a couple of buy to lets. Whatever the desired outcome for an investor, it’s the property sourcer’s job to find an investment package that works for this particular individual.
Sourcers need to to know their location inside out so they know a good deal when they see one. They should also keep up with the current state of the market, and advise the wider team on whether or not we should lie low for a bit of jump while the going is good.
Is it really Below Market Value, or is it really just at market value? What work needs doing on the property? How much is a refurbishment going to cost? What’s the rental value? It is our duty to carry out due diligence to make sure the property is a good fit for the investor and aligns with their specific requirements.
For every deal we present to an investor, you will need to put together a report that includes: purchase price; property details and history; site and floor plans (current and potential layout); market value and comparable sales in the local area; analysis of local comparable and local average rental income, including details of previous similar deals in the area; economic forecast of the location focusing on deals of economic and future growth; meticulous breakdown of the financial details, including monthly cash flow, achievable rent, service charges and expenses, yearly maintenance and average void rates, refurbishment estimate, schedule of works, uplift value and expected rental income per month following refurbishment, re-mortgage and refinance forecast, pictures of the property and condition report, our recommendations for uplift and recommended strategy for the property. You will be provided with a template and guide to comfortably and accurately do this.
Most job roles benefit from networking within their specific industry and property sourcing is no exception. In fact, contacts are even more crucial in property, where many deals aren’t advertised to the general public until months later, and the best pickings have already been taken – by private investors. This is why it’s crucial to build and maintain relationships with local estate agents. It’s the sourcers duty to build rapport and encourage them to send you the best BMV properties before they go on the market.
Have an idea or a project, lets collaborate and build some awesome stuff
© Prosperty Group 2021 | All rights reserved | Registered Company Number 13131891