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Sourcing New Deals and Getting New Investors

  • Thread starter GlobalInvestor2018
  • Start date
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GlobalInvestor2018

New Member
Hi,

Have a few questions and would appreciate any seasoned property investors advice.

Originally from an Investment management background (mainly working in commodities) but came across some property deals that have been an introducer. I knew 2 Singapore investors looking to buy a few apartments in London. I subsequently found a small broker who had a few discounted properties and they were of interest to my Singapore investors. Now this broker only deals with a small number of properties so probably not going to be useful should other deals come available.

Now I'd like to get involved with more of these deals and as my partner is Asian British (Chinese British) we could target more Asian investors overseas. I've already had 3 other friends of the Singapore investors, from Taiwan, contact me. My partner been a Mandarin speaker (also works in a sales job) has been helpful filling some language issues.

My questions are -

1. How can I source more under valued deals - is this by screening myself? Going to vendor making an offer at discount then going back to my client, charging a retainer and offering him the discounted property? I'm happy to consider this but also are there a list of any good known brokers I can match with the investors I am starting to get with so they pay me a commission on investment deal?

2. How can I expand my investor client base? Obviously would be looking at East Asian investors but all investors from UK to overseas? How do most find their investors to contact? Cold calling - if so how are they sourcing them? Obviously website / social media / google ads etc but any other methods?

3. Finally, without a Chartered surveyor investment appraisal, how are you determining the value of the property to establish if it is below market value? Just do comparable analysis with similar sold properties locally etc?

Many thanks!

Sebastian
 
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PostBrexitInvestor

Member
I will answer in more detail when I have more time but all I would say is, if you dont know the local market yourself then you will need to go through a broker. Probably two sets of commission - yours and the brokers - so not the most attractive deal for buyers/sellers. Unless you are able to source the deals directly yourself, through a developer or your own research, then margins might be fairly thin. Hope this makes sense?

Why dont you specialise if one part of the country and one type of property - that way eventually, hopefully, people will come to you as you will be the "person in the know". Then you can look to expand to other areas of the country and other types of property.
 
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GlobalInvestor2018

New Member
Yes, agree on the specialty aspect. I know London well having bought my own place here few years ago and have a buy-to-let in London. I could source a few myself (but have time constraints) but would like a good broker to work with so can also offer my potential clients more options. Other cities I know less so (other than Oxford and Manchester). I would need to work with brokers who knew the market for others.

If the deal was good then skimming my commission and the brokers (obviously better if I sourced it) would still produce a good investment for the investor. This was the case with the other deals I was introduced to - there was still a good discount left after commissions.

I plan on looking besides residential, on mixed used buildings (options such as restaurant with residential - popular from those already introduced from Taiwan) and possibly some commercial deals.

Would be good to hear further views.
 
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diyhelp

Active Member
Personally, I would look to specialise in one specific area or one specific type of property in the early days until you get established. If you throw your net too widely then that makes it difficult for you to stand out from the rest. If that makes sense?
 
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