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New to buy to let and been searching through web sites and agents etc usual places to find a suitable distressed/ BMV property for my first CHEAP buy to let (not too much cash to spare).
However i've stupidly only just realised through my job if i spend some time gently interrogating my customers i quite often get to find the details of the properties I visit could be golden opportunities for investors able to buy property quickly/with cash to spare, or maybe to deal sourcing companies but not sure or how in-depth i would need to go.
Today i got chatting to a customer who was clearing out a relative's house because his father sadly had to be put in a rest home and he was going to have to sell the house quickly to pay for his stay there, well over £2000 per month!
Turns out the property was exactly what i've been searching for as a buy to let, a nice little 3 bed semi in need of slight refurbishment/modernising in a nice, quiet, and inexpensive area...AND just around the corner from me.
I politely asked what he was thinking of selling it for, the price he quoted was a bit BMV, BUT he hadn't had it valued yet. I told him it was just what i was looking for, he invited me in to look around and it was a great little home in good condition.
I expressed an interest in buying it and we exchanged details (If i had cash i would have made an offer right there) He said he will have to get it valued first but will give me a price before he put it on the market and will give me first refusal. Of course i realise this might be all hot air but he seemed quite eager to sell quickly. If all goes well i could possibly help him as i explained i have no chain to worry about and last time i talked to my broker he said he could get and mortgage for me in this price bracket fairly fast. That would help the gentleman out and of course me, we both benefit from the situation.
Now i come across properties like this where relatives have died or gone in homes and their relatives sometimes come from far way to try sort things out quickly. Occasionally homes have been trashed by tenants or used as drug farms, tenants kicked out owing thousands and landlords eager to get shut, some just in need of a tidy up, or just run down properties all about to be put up for sale, I see this roughly 2 or 3 times a month sometimes. Normally i dont think about it much, but as i now want to get into buy to let i have realise this could be valuable info and not just for me if i went about it the right way. BTW dont get me wrong i have no interest in trying to rip people off or pressuring them in any way, they are usually stressed enough as it is. And that's not my style.
The area i live has a good spread of many wealthy homes, a-lot mid prices and some council estates and poor housing and in a desirable town with a constant shortage of properties on the market.
Hopefully i will get this property at a reasonable price, but even if i dont, hopefully other opportunities will come along soon if keep my eyes open. Also i have colleges who could supply me with info on possible opportunities as well.
Anyway once I get my first buy to let, all the other properties will be useless to me for quite a few months till i can remortgage again, obviously this is where i could help out other investors. There are also many properties i come across that i could never afford whatever state it is in and this is where i could maybe help out others with bigger pockets than me.
Thing is who could i contact with this info, and how would i go about guaranteeing i would be getting some sort of cut from the deal and what process and details would i need to follow. Also i would not want to end up introducing sellers to sharks.
Any ideas would be helpful.
Hi Aaron,You need to get compliant before offering your services as a deal sourcer. If you are introducing a buyer to a seller, you are caught by estate agency regulation as this is a highly regulated activity. You would need to join an independent redress scheme, join a client money protection scheme, and get the appropriate insurance, amongst other things.This thread may give further insights >> > FREE deal sourcing course Hope that helps for starters?
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**
Did not realize this was highly regulate and i would be breaking any rules. Will study the info carefully.
You are not alone here. There are many people deal sourcing without realising they are trading non-compliantly. The fines are quite significant, so its important to set your business up compliantly.