In the world of property investment, networking can be one of the most valuable tools in your skillset. However, if you’re new to the market or have moved to a new area, you might not yet have a strong network.
Luckily, it’s still entirely possible to get your foot in the door, particularly in a niche like buy-to-let.
Here are some tips on how to find ideal buy-to-lets without a strong network.
1. Know your location
Having a solid network helps get inside leads on hot new properties, but it’s not the only way to get started with buy-to-lets.
One of the most helpful tips is to know where to start looking for suitable properties. A rental market is different from a purchase market, so focus on locations where renting is the preferable option over buying.
Some suitable locations include:
- Near major employers
- Near important local transport hubs
- University towns or cities
Of course, where possible, avoid things that would put clients off: busy roads, noisy streets, and so on.
2. Don’t underestimate property auctions
If you’ve got a bit of knowledge about buildings and you’re not afraid of a challenge, you could keep an eye on the auctions. Prices swing wildly depending on who’s there on the day. That means you could pick up a bargain. But it also means prices might go so high it is hard to understand why? Everyone has a story of seeing an auction property sell for more than the next door on the open market. Don’t be that buyer! But for the buy-to-let sector, it’s still a great way to get access to tired properties with the potential to add value. And even if you get outbid, you’ll get a lot of learning very quickly.
3. Choose properties where you can add value
This is a similar point, but quite different. Older properties have more significant potential for adding value, whether it is as simple as a new kitchen or something more advanced, like adding an extension.
By adding value to the property, you can charge higher rent. You should make sure you add more to the property’s value than you spend on the works. It’s also an excellent way to make a property more desirable and make it easier to sell later.
4. Don’t be afraid to put in the hard work
What you lack in a network you can quickly compensate for in hard work. Browse local estate agents, either in person or online, for market research as much as desirable properties.
Look at the sort of things that sell quickly, and ask yourself why. Similarly, look at what hangs around for a long time and decide why it might not be selling. What’s more, you could always snap it up at a low price, refurb it and either flip it or keep it and turn it into a desirable rental.
5. Know your target market
As with any business, it’s vital to know your target market. Deciding who your ideal clients are will help you paint a picture of what they want. For example, if you’re setting up in a university city, students want function, a central location, and minimal upkeep. And more and more they want stand out decoration.
These should be your main buying factors for this target market.
Buy-to-lets are an excellent investment that have the potential to offer profit from the start. By doing research and putting in the work, you can find ideal properties, even without a strong network.