What is property Sourcing?

Property sourcing is a term used when a person or company instructs another business to find a high yielding investment property on their behalf that they would not have been able to find their selves. They may not be able to find it themselves due to lack of contacts, market knowledge and time, amongst other things. They also might simply, just not want to and therefore outsource to a company with the expertise and time to do it for them.
A property sourcing agent is someone who secures property deals which they then sell to property investors. The role of a property sourcing agent is to act as a middleman between the buyer and the seller, helping to smooth the deal out, making it a better experience for both parties. Working with property sourcing agents is a great way to grow your portfolio at a faster rate than maybe going alone. There is always a fee involved to pay the sourcing company for the service they have provided and this will vary from company to company and depend on the size of the property deal. If you are interested in our property sourcing service get in contact now

How long does the property sourcing process take?

The average deal takes around 4 months from when we begin sourcing for you. We actively generate a steady stream of opportunities throughout the year, but they never last for long for long! The best way to keep up to date with our latest deals as soon as they are secured it so sign up to our mailing list today. That way, when a suitable property is available, you’ll be first to hear.

Are you able to find tenants?

We cannot directly find tenants for you, however, we have a good network of successful letting agents that we can introduce you to. We only recommend property letting agents that we know and trust and have used ourselves.

What is the difference between an ‘estate agent’ and a ‘property sourcing agent’?

An estate agent works with the seller, and their fees are based on selling at the highest price possible, whereas a sourcing agent works with the investor/buyer’s interests by negotiating the lowest purchase price. They are negotiating on your behalf. An estate agent’s loyalty will always naturally lie with the seller and a sourcing agent’s will always be to their investor client.

Can you help with my mortgage application?

We are not mortgage brokers, however, we have a good network of reliable brokers that we can introduce you to. We only recommend mortgage brokers that we know and trust and have used ourselves. Broker fees can vary in price. It is good to establish the differences in costs from the very start of the property purchasing process.

Can I use my own solicitor or builders?

Yes, you are more than welcome to use your own solicitors and builders. We have recommendations to our own team members available should you require them. If you already have your own solicitor and builder, and you are happy with their services - that’s fantastic. If, for example, you don’t have a mortgage broker or surveyor, then let us know, we are always more than happy to help guide and advise you. If you do not need recommendations or project management, we can simply source you the property without any additional services involved.

What is rental yield?

Rental yields are percentage figures which indicate the type of returns you will make on your buy to let investment. Identifying your rental yield is a key part of any property investment strategy and you must know this figure when reviewing and comparing different properties.

What kind of yields can I expect?

Yields can vary, depending on where and what type of property you buy. Contrary to what many people think when they think about investing in property in the UK, London actually offers some of the lowest property rental yields in the UK. Regional cities in the north of England offer better rental yields in the UK, regularly above 8%. All of the properties within our portfolio in Liverpool currently offer yields upwards of 10%.

Do I need to do my own due diligence?

You are expected to conduct your own due diligence and make your own judgement on any property being offered. You must verify the information and any speculative information offered by us. You are expected to perform your own financial and legal assessment of any opportunity prior to making any commitment to purchase a property.

What makes a property sourcer fully compliant?

Winova Property Sourcing Limited is a fully compliant property sourcing company which means we have professional accountability. We are registered with the Property Ombudsman, ICO, Anti-Money Laundering with HMRC and are fully insured with Hiscox to carry out this work on your behalf. If a property sourcing company cannot show you proof of all of these items, they might be operating illegally and unprofessionally and are probably not people you want to work with. Every sourcing agent should have their own contracts which outline their own unique terms and conditions.

What does BMV mean?

Below Market Value ( BMV) properties are residential properties available for sell at a price below their actual market value. This is usually because the owners of such property need to sell their property very quickly. In most cases, the sellers will sell their property below market value because they are faced with some kind of financial difficulty. In some cases, they may be facing repossession. Some people sell their property below market value due to a divorce or because they are relocating; there are such a broad variety of reasons why someone might want to quickly sell their home. Selling a home below market value means the owner can dispose of their property quickly, without going through a complicated and lengthy process. Speed is usually their priority.

Why use a property sourcing agent to help find and secure BMV property deals?

A key reason for working with a property sourcing team is that you benefit from access to the most lucrative properties that have not even reach Zoopla or Rightmove yet. This means the properties our clients have access to are pre-release deals – often not available to the public market.
We purchase properties in Liverpool and the North West on a regular basis. We have strong relationships with local estate agents and letting agents where we know and trust each other and have worked together for many years. This gives us excellent buying power and therefore availability to below market value properties in Liverpool. Most importantly, we know what a good property deal looks like and it is our goal to help you secure these deals to help you grow your own property portfolio.

What is a HMO?

A house in multiple occupation (HMO) is a property rented out by at least 3 people who are not from 1 ‘household’ (for example a family) but share facilities like the bathroom and kitchen. It’s sometimes called a ‘house share’. If you want to rent out your property as a house in multiple occupation in England or Wales you must contact your council to check if you need a licence. Renting out a property by the room tends to generate more revenue than letting it as a whole.
You must have a licence if you’re renting out a large HMO in England or Wales. Your property is defined as a large HMO if all of the following apply:
1. It is rented to 5 or more people who form more than 1 household 2. Some or all tenants share toilet, bathroom or kitchen facilities 3. At least 1 tenant pays rent (or their employer pays it for them)

What is a single let property?

A Single Let is where you own a house that you let out to one tenant. The one tenant might be family or an individual. They are often considered to be less work and hassle than a house which is rented out room by room (HMO). As a landlord, you are responsible for looking after the property and making sure everything works. This is as well as paying the ground rent and service charge, if it is a leasehold property. The tenant is responsible for paying all of the utility bills such as water, gas, electric, broadband internet, TV licence and council tax - plus their own personal contents insurance.

What is an investment property?

An investment property is a property that generates a return on investment for the person who purchases it. The two ways people benefit from property investment are with regular rental returns, returns from the future resale of a property that’s grown in value, or both.

Why do we invest in Liverpool?

YIELDS – Rental yields are some of the best in the UK. Postcodes such as L1 & L7 offer an average of 8% yield. All our properties have a minimum of 10% - These are FANTASTIC numbers. DEMAND – There is no point in buying a property if there is zero demand. Liverpool has 4 universities and 12 Hospitals/ Medical Centres. This means an abundance of people looking for rooms and houses to rent or buy. CAPITAL GROWTH – While many parts of the UK are suffering from a gloomy outlook for 2020, Liverpool defies this with an annual growth rate of 4.1%. Rents are also set to increase by 3.5 % over the next 12 months.

What should I look for in an investment property?

When looking for an investment property, consider the strength of the location. There are so many different towns and cities in the UK to choose from. Your considerations should include the type of rental yields on offer, the level of demand, and the potential for capital growth. You want to ensure your property is in an area of high rental demand and that you have minimum void periods, providing you with consistent rental returns.
Where we invest in the North West of England, house price growth is predicted at 21.6 per cent over the next five years — higher than any other UK region. Investing in a city with strong capital growth potential and high average yields puts you on the right track towards a lucrative investment. These are the two main considerations when thinking about buying an investment property.

What is a void period?

Void periods are periods of time when a rental property is left unoccupied and, therefore, not bringing in any rental income for the landlord.

How much money do I need to invest in property?

This depends on what type of property investment you are considering. You can purchase property in Liverpool for example via Rightmove from as little as £35,000. You need to consider what you are buying it for and how you are going to fund it to establish how much money you will need to get started.

What is a Buy-To-Let property?

Buy-to-let is pretty much what it sounds like – you buy a property in order to rent it out to tenants. You should consider the property as a medium to long-term investment, in investment terms. Buy-to-let investment is very different from owning your own home as it generates income for you. You will automatically become a landlord when you purchase a BTL and therefore you’re effectively running a small business – one with important legal responsibilities.
You can make money this way by generating an income via the rent charged. You can also generate cash by selling the property, if you ever decided to sell. Although house prices have fluctuated in recent years, property is still a relatively safe long-term investment.

What fees do I need to consider when buying an investment property?

There are a number of fees that you must consider before you purchase a property. These fees can can include:

• Survey fees

What is a Buy-To-Let Mortgage?

If you can’t buy your investment property outright, you'll need to apply for a mortgage. Many people do this on a regular basis and it will have to be a specific buy-to-let mortgage. A standard or 'residential' loan is only relevant when you also plan to live in the property.
There are various differences between a residential and buy-to-let mortgage, and they start with the way your affordability is calculated. Instead of your salary, the lender will view the potential rental income of the property as your primary income source. Many lenders will then take your personal income into account as a secondary factor.

Can I live in my investment property?

Generally, investors do not live in their investment properties. If you chose to live in your Buy-to-let property, it is no longer an income-generating asset and it becomes owner-occupied instead. You must also consider the terms and conditions of your mortgage. If you have a buy-to-let property that you wish to move into, and which you have funded in part through that mortgage, you will need to change your buy-to-let mortgage to a residential mortgage before moving into the property itself. As a general rule, this is not common and often defeats the point of purchasing the investment property in the first place.

How do I know what rent to charge my tenants?

A local property letting agent can help advise you on the typical rent you can expect to achieve on your investment property. We believe that happy tenants are key to success in property investment. Charging fair rents and treating tenants well means that they will stay longer, and therefore results in fewer void periods for investors.

How do I know if I can afford a mortgage?

Once you know how much you have for a deposit, you can start looking into what mortgage companies would be prepared to lend you. You'll be able to work out the loan to value (LTV) applicable for properties of different values. You can then use mortgage lenders' calculators to work out how much a mortgage would cost per month. If you've already worked out your monthly budget, you'll know how much spare cash you have to put towards paying a mortgage.

What is capital appreciation?

Capital appreciation is when the value of your property has increased over time, meaning it can be sold for a higher price than the initial purchase price. It’s important to consider capital appreciation alongside rental returns to get the most out of a buy to let investment.

What is Home Equity?

Home equity is a homeowner's interest in a home. It can increase over time if the property value increases or the mortgage loan balance is paid down. Put another way, home equity is the portion of your property that you truly “own.” You're certainly considered to own your home, but if you borrowed money to buy it, your lender also has an interest in it until you pay off the loan. Home equity is typically a homeowner’s most valuable asset. That asset can be used later in life, so it’s important to understand how it works and how to use it wisely.

What are the different property investment strategies?

There are 7 types of strategy in property investing that are generally considered as the main types of investment. These are:

• Single lets to professionals

What is a HMO?

A house in multiple occupation (HMO) is a property rented out by at least 3 people who are not from 1 ‘household’ (for example a family) but share facilities like the bathroom and kitchen. It’s sometimes called a ‘house share’. If you want to rent out your property as a house in multiple occupation in England or Wales you must contact your council to check if you need a licence. Renting out a property by the room tends to generate more revenue than letting it as a whole.
You must have a licence if you’re renting out a large HMO in England or Wales. Your property is defined as a large HMO if all of the following apply:

• it is rented to 5 or more people who form more than 1 household