How To Find Property Investment & Development Sites From Motivated Sellers?
Distress Situations
Looking at the picture, anyone who suffered from flooding would definitely know that they would be motivated to sell their property, since risk of flooding means the possibility of their house being damaged or swept away, or at best severely damaged by flood water.
There are lots of circumstances that may distress an owner and lead them to become motivated to sell quickly.
Some problems are fixable with the right sort of expertise. So Japanese Knotweed is a blight on a property, however it can be treated, and so a monetary consideration can solve that problem in a failry short period of time.
Damp problems are treatable, and so is subsistence, so with the right amount of money more or less any problem can be fixed.
How To Find Property Investment & Development Sites From Motivated Sellers?
I have been doing a property business for a number of years now, and it is interesting to see the new software tools that are now available to property investors and developers, and how these tools cn hel you to save a massive amount of time and money in your property searches.
I have learned from various property gurus, mainly in the UK about the key factors for profitable property investment and development.
Simon Zutshi is one leading UK property guru who wrote a book about his thoughts about successful property investment, which is called “Property Magic”, which is now on the 6th edition of that book.
Simon Zutshi suggests that you need to seek the 5% of sellers of property who are motivated to sell. This is because most sellers re not that motivated to sell quickly. As a Property Investment or developer you need to find the sellers who are the most motivated to sell, as it is from this small group of the total market that there is a chance to profit. But the big question is:
How To Find Property Investment & Development Sites From Motivated Sellers?
One of Simon Zutshi´s students and followers is a guy called Guillaume Black and he has developed some software called Property Investment Filter which takes the hard work out of finding such motivated sellers. How does this software work?
Property Filter takes the data from all of the Property Investment platforms advertising property for sale in the UK, and takes certain criteria and analyses this information so as to present it to the subscriber or viewer in different categories, so that you can identify which sellers are the most motivated to sell, and therefore target those properties that best match what you are looking for. This software, therefore, saves the subscriber an immense amount of time searching the usual platforms and arranging viewings which because they are not targeted toward motivated sellers will most likely be unproductive.
To give an example of the Property Filter system in operation we will take a postcode first since the first criterion is the location of the Property Investment that you are looking for.
Property Investment Filter gives you a pipeline of potential deals or suspect properties that you can carry out your due diligence on, which is the first step in your search for deals that may work for you.
You can do a certain amount of due diligence research from your desktop, but if the research is good, then the next logical step is to organize a viewing of the property.
After viewing the Property Investment and confirming that you have not missed anything in your due diligence research, then you can decide to make an offer for the property.
Property Filter can help you with this aspect of evaluation. This is because Property Filter has all of the relevant information about that particular site in its database of information.
You can see from your Property Filter dashboard what the history of the particular site is, specifically dates when it was put on the market, and also taken off the market, as well as the asking price at any time.
Quite a high proportion of sites do not progress to completion. They may be under offer and sold subject to contract, but then there may be a problem with concluding the transaction, and it falls through. The seller may keep it off the market for a while, or they may put it straight back on the market at a different price.
You can see the whole history, including dates when put on the market and when taken off, and the price point at every stage. Sometimes sellers read the market completely wrong and are unrealistic about the real value of their property.
A year ago there was a strong seller´s market in the UK, and many properties were sold at relatively high prices because demand outstripped the supply of available properties.
Now there is a surplus of property on the market and prices are nowhere near as robust. It is now a buyer´s market, and there are many deals to be had at the moment.
You want to locate those sellers who have had their properties on the market the longest, and find the right price to buy from a seller who is probably becoming more motivated as time goes on, especially if they have had one or more sales fall through.
Ideally, though it may sound illogical, you want your first offer for a property that you decided is interesting, to be rejected. You want the seller to reject your first offer because you want to find the right price by negotiation. If your first offer is accepted by the seller, then you know that you have offered too much money for that property, and you may have been able to secure the property at a lower price.
And then the most important thing is to follow up with the dialogue directly with the seller, to see if your offer is not acceptable, then what can be done to overcome that obstacle. After a period of negotiation you may be able to find common ground and agree an acceptable price that also meets the sellers expectations.
Using Property Filter you can set searches within the software for as many locations and criteria that meet your requirements, review them on your desktop and decide which ones to progress to viewing and offer stage, then hopefully to acceptance..
Property filter is one of several software tools that i use to find sites that meet my criteria, and I shall continue to use it because it saves me a massive amount of time searching the other available property marketing platforms.
I will inform you about some of the other software tools that i use for property searching and research in future articles.
How To Find Property Investment & Development Sites From Motivated Sellers?
You can use software or you can use your other senses and listen and talk to poepl to find out who may be motivated to sell quickly. You may be able to solve their problem and create an opportunity for yourself as well.
That is the ideal situation : WIN WIN!