Finding off-market property comes with an array of benefits that you won’t find when you buy on the open market. The process tends to be smoother, more flexible and removes some of the normal time pressures.
Quite often, the property owners may not have even thought about selling their property and without the competition of multiple buyers you have an opportunity to negotiate a fair price without the need to constantly re-negotiate.
Off-market deals work across almost any strategy and the number of exit strategies increases every year.
But how do you find these off-market opportunities?
If you’re an investor, the first port of call would a be a local sourcing agent. They are normally experts in particular regions, know the areas to avoid and will even source a particular type of property to order.
Networking with other investors is another great tool for any property they come across which is outside their strategy and there’s even the opportunity for a Joint Venture.
There are a number of other strategies, such as direct to vendor letters, that can be very effective when done correctly but for most investors, developers and sourcers this can be a drain on their resources and would normally be restricted to the area they operate in and have in-depth knowledge of.
It can be very difficult identifying opportunities across a wider area. As part of a our social impact mission to house the vulnerable and less fortunate, we looked at a number of strategies and developed different systems to help identify off-market opportunities.
We found that an intelligent automated approach delivered the best results and whilst I can’t reveal exactly how it works, I can tell you that our UKPA Smart Deal Machine has generated 120,000+ commercial direct to vendor leads.
How can off-market deals benefit you and the local community?
From our experience, a lot of the off-market properties we come across are not being used to their full potential and with the right approach, investors, developers and sourcers can increase their returns whilst delivering property that as an immediate social impact on individuals as well as the wider community.
This has been very apparent in the social housing sector where local authorities and private providers have suffered years of decline in available stock. Our Partner Network has managed to help address that challenge by repurposing defunct commercial property (off-market) into new, safe residential homes. To date we have secured 1800 properties for almost 8,500 vulnerable people, working with local authorities and housing associations.
It shows the powerful benefits off-market property can generate for anyone in property as well as the wider community.
We’re hoping to extend our off-market lead generation to cover other strategies and have an even bigger impact and that’s where you could help.
We have opportunities for investors, developers and sourcers throughout the UK to help us expand our mission both now and in the future and we would love to hear from you. Simply fill in our contact form and we’ll get in touch.
By Guy Rees, Founder, UKPA – UK Property Angels