Three Ways to Source Investment Properties
We all know that one of the best ways to make money, long-term, is to invest in property as it is one of the most reliable financial assets we can have.
There are many options in terms of what to buy, from the dilapidated do-upper to the off-plan home which is yet to be built. Indeed you can be as hands on or hands off as you want, in your approach, for instance you could use a commercial fit out service to take care of everything or you can do everything yourself.
However, the first step is to source the investment property for which you seek. . Here are three of the most common options.
FIND AN ESTATE AGENT
The most conventional way to find a property is to use a real estate agent which can cut into profits due to the fees associated with this service, that said, it can also provide value in terms of the return on investment due to the convenience factor. Indeed, a solid real estate agent can be well worth their commission, however, today more and more people are leveraging the power of the internet to privately market their homes which is often a cheaper and more direct route.
There are some great deals to be found at property auctions, however, it’s worth investigating the reason the property is being sold at auction; as it could be as simple as a financial issue where the bank or finance company have foreclosed on the house and are merely following their corporate policy to sell at auction, or perhaps a relative has inherited the property and wishes to sell the house from an emotional distance.
There are, however, times when sellers are choosing to sell at an auction for more dubious reasons, as the house is sold as seen, with limited time to view the property and carry out comprehensive property checks. In this way, it can be just like how car dealers will often sell a car that is riddled with hidden issues at an auction.
A better option than going to auction might be to find sellers directly and negotiate with them one-to-one, as this way you don’t have a middleman taking a cut, unlike dealing with an estate agent or even an auction house.
Granted, this level of negotiation can be trickier than outsourcing the task to a real estate agent, who is a more neutral party, but presuming you are tactful in your negotiation, finding homeowners wishing to sell their property today is made particularly easy with the explosion of property websites on the internet.
In summary, whatever you decide to do, whether that’s to use the costly yet convenient service of a real estate agent, take a gamble at an auction, or hunt out private buyers and negotiate with them directly, property investment is a great way to make money and to derive long-term benefit from all your up-front effort, particularly if your plan is to buy to let whilst the property appreciates in price.