6 Tips for Sourcing Below Market Value Property
When looking for the property deal of the century there is no hard and fast rule, but here are a few tips to help you get started…
1- IT’S ALL ABOUT RELATIONSHIPS
Ultimately when looking for discounted property you HAVE to build the right relationships. The people you are dealing with need to trust and respect you and you need to understand their pain points. If you can help an estate agent discard their troublesome stock or help a vendor get a quick sale then you will be an asset to them, but you will only get to benefit if you build that relationship first. Speak to them regularly, be honest, be clear in what you are trying to achieve and why. Always tell the truth.
2- BE CONSISTENT
When you set your sights just keep going. It will probably take you longer than you think. Maybe you’ll get a quick win but then go through a dry patch and be tempted to give up. Like in any business, consistency is key. Make a plan and stick to it, use a calendar system to remind you when to touch base with your clients and adhere to it. Timing is key and just because you got a no this week it doesn’t mean you will get the same response next week. People will recognise that you are here to stay but it will take time.
3- USE ESTABLISHED SYSTEMS
It’s not rocket science. If it works for somebody else it can work for you. Learn how other people source their property and find out where good deals come from. Talk to developers, agents and mortgage brokers, people who have strong networks already. That way you only need build a very strong relationship with one person and they can be a gateway into their already established network. Work smart and utilise others hard work, most people are more than willing to share if you have a service that their clients can benefit from.
4- BE COURTEOUS, NOT CHEEKY
Ultimately you are going to be putting low offers in on people’s property, this is a delicate situation. People speak of ‘cheeky’ offers but even a low offer doesn’t need to be cheeky. Be courteous and confident when making your low offers. Understand that it may not be what the vendor wants to hear but also that it is a solid solution. Don’t over sell it, just be honest in what you need to achieve for yourself or your investor and be matter of fact about it. Make it clear that you do not wish to offend, nor will you be offended if they send you packing. But always remember you are offering a service and that service comes at a price.
5- DELIVER ON YOUR PROMISES
The quickest way to lose face is to offer something that you can not deliver on. Don’t go sourcing property until you have your exit. Make sure your finance is in place or that your investor is ready and looking for that type of stock. If you are making low offers you need to be able to act quickly once those offers are accepted. Build a relationship with a decent broker who specialises in BMV funding or make sure you have multiple investors ready just in case your preferred investor is not happy with that particular property.
6- HAVE FUN
Sourcing property can be very hard work and time consuming and for every offer that gets accepted many will be rejected. This is all part of the game, and it should be a game. The thrill of the chase, viewing different properties, finding your way around new neighbourhoods and even getting lost. You need to find the fun in it so that you can project passion and positivity every time you speak to your clients. If your heart is not in it then theirs won’t be either. Keep smiling.