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This is my first post here and am new to property investment. I need some guidance on how you do due diligence before buying a property from a property sourcer.
The sourcer has provided me with the link on rightmove, and if i accept it they want 3k.I have found the property on both zoopla and rightmove and to be fair the price is 1500 less than whats on rightmove right now. What else do the more mature or seasoned professionals do?
Is there a checklist of questions or things you go through before proceeding with the buy?
Greatly appreciate your help, and have already learnt so much just by reading through the forums.
Kind regards Harris
Hi Harris,This thread should assist you >>> Finding a reputable deal sourcer .Paying £3K to get a discount of £1500.00 means you are paying £1500.00 than the price on Rightmove, so it's not a good deal imho as you could have got that deal yourself direct from Rightmove for less.Deal sourcers should be providing a full package of due diligence on the property and should be getting you a discount of in excess of 10% imho, otherwise they are not earning their fee.Hope that helps?
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Thank you so much Vanessa, your comment helped alot. They have provided me with a pack, but in the pack they advise you to do your own due diligence, and since i have never done this before i am reaching out to the community to get some information.
I will in the mean time find out if they are registered with the Property Ombudsman scheme
Their membership of any trade bodies should be listed along with the relevant membership number. Typically they should be registered with several including ICO, HMRC/AML, PRS - details should be displayed prominently on their website / literature.
There should be a detailed breakdown of costs as Vanessa says.
Only in certain circumstances should a sourcer be 'sourcing' a listing off RightMove.
From what you have said the deal does not stack so I would move on.
Koru Property Strategies
thank you all for the comments, they are very helpful.
As im trying to learn here, how would you go about doing your due diligence?
1.Is looking if the sourcer is listed in property obudsman
2. Registered with ICO, HMRC/AML, PRS
3. How do you verify the costs the sourcer is telling you(especially if its not on zoopla or rightmove)?
4. What property related checks do you do? do you get a surveyer?
5. Do you speak to a morgage broker to work the numbers?
6. Do you investigate the area for crime, news etc( having in mind i live in guildford, and the property i am looking to buy is NE).(ps: obviously will visit the area prior to buying, im trying to understand the process of selecting the ones that are worth your while to do this for).
As im based in guildford, i dont want to be visiting each and every house the sourcer( or multiple sourcers) send my way. Im trying to find a formula to make sure that I am doing the due diligence on what others are telling me. Really interested to hear how you are doing this especially if you are buying in areas far from home.
Thank you all once again,
I can never fully understand why anyone pays a fee to buy a property
Just get stuck in yourself and find property close to where you live learn your market and Buy
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
How do you do your due diligence before buying your property?
what steps do you go through?
I am feeling your pain on this
I have seen one or two well advertised deals but struggle to ask the right questions when doing my own Due Diligence on the sourcers or area
And even if you don't use their services, just understanding them and their thought process (as dyslexic_landlord suggests) would help to 'Just Get Stuck In'
We need a step by step idiots guide here to assist me thinks!!
There are a lot of useful resources to assist with this on Property Tribes:21 questions to ask at an investment property viewing. Process to undertake deal analysis? Anatomy of a profitable property deal Top 10 tenant demand indicators & influencersMy 3 unbreakable property buying rulesVideo:
With regards to "stacking a deal" as mentioned in the video, see >>> Ready-made deal stacking calculationsFor anyone starting out, I recommend these threads:Top 10 Property Tribes resources for novice landlords and BTL investorsTop 10 Property Tribes resources to learn how to find property deals
Vanessa, thank you thats exactly what i was looking for.