This PDF outlines the best methods to find the perfect investment property for those who wish to invest, have disposable funds, but don’t have the time or the desire to do the research or due diligence required to purchase. So, here are our top tips to provide the perfect service to your investor clients.
1. Professionalism – sends key documents, such as criteria, policies, and procedures, at the outset
When it comes to providing a bespoke service for investors, we believe it is paramount to show professionalism from the very start of the property consultant and investor relationship.
This means doing all due diligence beforehand, ensuring contracts, policies, procedures, such as personal I.D and proof of funds, are provided beforehand. The worst thing to do would be to start the process of searching for an investor without fully qualifying them, as this would waste time. It is a good gauge to qualify that the investor is serious about carrying out a transaction.
2. Due Diligence
The first practice we do is carrying out comprehensive due diligence regarding the area for investing. For instance, it is important to find out how the values of properties have trended within the chosen location over a given period of time.
Other factors to consider include: how the exit or the arrival of a large employer will influence the local economy in the foreseeable future, and the expectations for the wider national economy. The second practice is building a generally sound investment strategy, which clarifies whether the investment is long-term or short-term in nature.
In this perspective, it is important to consider the conditions that will trigger an exit from the market if the investment is short-term. If the investment is long-term, it is important to
consider the actions that will be taken to‘ weather periods of turmoil’ in the market that may be likely to occur.
3. Gather a list of requirements, budget, POF, location, etc
Another vital part of the service we provide to you, the investor, is to fully clarify your requirements. It’s best to search for properties or projects to order as opposed to going for the gung-ho approach, where you just look for anything in any location.
This again could prove to be a waste of time for both parties. It is of paramount importance to document what an investor requires, location, budget, ROI (return on investment percentage, and type of property.
Some investors look for a specific figure of return on their investment, some may wish to only look at a return of 20% or upwards, some may be more realistic and open to 10% or more. Both these figures easily exceed what you would get from a traditional savings account.
4. Present properties in a nice PDF format with key figures and comparable
Presentation is key when we provide our service to investors, ensuring figures are clearly presented, documenting all elements of the deal purchase price, legals, mortgage, costs to refurbish, and potential rental figures.
Ensure everything is clearly documented. Taking a snapshot of the figures from an Excel spreadsheet is a good way to do this. Also, it’s vital to show comparables of recent house sales prices as well as local house rentals.
5. Try to buy at a discount or good price
Make the deal even more appealing by looking for deals where the seller is motivated, and you receive a discount of at least 10,% so the profit is realised from the outset, remember it’s the price you pay that makes a property a good investment.
6. Be transparent, compliant, and certified
Show transparency, and we prove that we are regulated, certified, and legally compliant from the outset. We ensure to pay for the regular certification every year, this includes membership to a property ombudsman scheme, data protection certification, anti-money laundering licencing, professional liability, and public liability insurance.
Property can be used to disguise illegal transactions,s so proving compliance for all eventualities is paramount in proving you have all bases covered. This can also put you ahead of your competition and those who don’t cover all bases in this regard.
7. Stick to what you promise
Be trustworthy and work with integrity. We never promise what we can’t stick to; this will only make us seem like we are not serious and genuine. We are always prepared to back up what we say.
8. Clear and regular communication
Similarly, to the last point, we are transparent and clear with our communication, ensuring we stick to the deadline. If there are delays to a process or transaction, be clear as to why, never letting the investor be the one to contact you before you contact them. Always being one step ahead and ready to pre-empt any eventuality.
9. Potentially go to auctions for them
We go all out for our investors; if that means spending a whole day at an auction, then so be it. This can also provide networking opportunities, and you may meet others who are also interested in the services provided.
10. Find properties with scope to add value
We look for the ugly duckling opportunities, especially those where huge value can be added. However, we are wise to the fact that it’s not something that has an unrealistic renovation cost; be prepared to do all the due diligence required and be willing to get professional opinions on costs and work that may be required. Do due diligence and market research on what price can be achieved once work has been completed.
11. Large opportunities such as land development or mixed commercial/residential
Be prepared to explore larger opportunities, as this can be lucrative to an investor but can also help in order to expand into joint venture opportunities or allow the exploration into project management and full involvement in a project such as new build flats, houses, or conversion from commercial to residential. This only helps to enhance our reputation and knowledge as property consultants.
12. Build relationships with agents in the required area.
The majority of properties are still sold through estate agents, and we are always prepared to build relationships with agents and are not afraid to spend time nurturing that relationship. Be prepared to visit them regularly, as we have seen that we start to get calls about properties before they even come on the market, which provides a good advantage over competitors.
Conclusion
We can cater to a variety of investors’ needs. If you are considering investing in a new property or project, contact us if you would like to discuss how we work and how we could help you.
Looking for more investment property insights, market updates, and expert guidance? Follow our Facebook page to stay informed and discover valuable property investment opportunities.