Making money from other people’s property

Making money from other people’s property

We all know that one of the best types of investment is in property. To many, purchasing a property is unattainable. This is mainly, due to lack of financing options or lack of a substantial deposit or funds for renovations. However, there are several ways of making money from property.

In the world of property sales, you no longer have to be a property owner to make a tidy profit. Across the buying and selling world is great demand for middlemen. These include property sourcers and stagers smoothing out the property-selling process. There are also property flippers, renovators and managing agents, whose work can quickly increase the profits to be earned when properties change hands. These are some methods of profiting from other people’s property. These offer you lucrative financial opportunities that won’t have the same entry costs as buying a house. In this article we will go over the top five ways in making money from property in more detail.

[1] Property Sourcer: making money by finding property

One of the most effective ways to make money from other people’s property is to become a property sourcer. Property sourcers play a key role in managing the relationship between buyer and seller. In the simplest terms a property sourcer does very much what the job title describes, sourcing properties. This entails finding lucrative property deals for investors.

Property sourcers streamline the process of property acquisition for property investors. Property inveestors are usually already likely grappling with a variety of responsibilities and jobs. Thus, a property sourcer can find a property and negotiate a sale price with a property vendor for their client. Going a step further, some established property sourcers will further streamline the deal by taking care of sales chasing. They can also handle legal and other duties that come with any property sale.

By taking on duties of the back-and-forth between vendor and buyer, a property sourcer can make money as a middleman. Property sourcers can turn simple leads into pre-arranged saleable ‘packages’. As a sourcer, you can become more experienced at finding properties with great potential. You will need be familiar with areas on the cusp of redevelopment and potential. Given their value, property sourcers are sought by property investors, who have the cash to bring to property deals.

Of course, going from simply selling a property lead to setting up a property sourcing company does require work. It is advised that all aspiring property sourcers communicate and register with The Property Ombudsman Scheme. You would also need to pay due attention to rules and codes of practise. Working within these schemes, acting as a property sourcer still represents a great way to enter the world of property dealing.

[2] Renovator or project manager: making money by fixing-up a property

One of the most well-known ways to create profit from a property is to fix it up. It’s a familiar part of many property investor’s road to a full career in property to begin with purchasing a home in need of a lot of work at a reduced price, fixing essential utilities, as well as smartly modernising the property on a budget, before reaping the financial rewards from the house’s renewed market valuation.

Of course, fixing up a property doesn’t mean you have to own it. Property investors will often not have the time to fix up each new acquisition themselves. As many investors acquire a larger portfolio of properties and begin to buy more themselves. This is where a dedicated property renovator comes in.

On top of the profits made from renovation work, fixing up properties for an investor will provide invaluable experience. You can gain early experience by working for pre-existing renovation contractors, before slowly branching out on your own. As a renovator, you will not only be familiar with design and renovation itself, but will also get a taste for what kinds of properties are being bought at low market prices. Furthermore, you will learn about identifying suitable properties that represent lucrative opportunities for profit through renovation. This market experience leaves a property renovator with unbeatable experience for their own forays into property purchases. They also are a good way to quickly build up a portfolio once you have the funds to do so.

[3] Property flipper: fast-tracking profits on property sales

Going hand in hand with a more formal property fix up and makeover is a property flip. Flipping a property is generally a faster way to turn a profit than a traditional house refurbishment. However, it also requires a sharper eye for a great property deal alongside close attention to the numbers. The primary aim of property flippers is to sell on a property at a profit within a few months.

Flipping a property does not always rely on a quick makeover, but can also be brought about through other means. This includes extending a lease or resolving legal issues that were tied up with a deal. Spotting a property that only needs a small amount of work to turn a profit requires good sense and a wide knowledge of the property market. Thus, having the development knowledge to be a builder consultant or project manager, or having the skills to source interesting properties like a property sourcer can provide good income.

[4] Property stager: make money by speeding up property sales

Staging a property is an incredibly simple and affordable way to immediately increase the saleability of a property. Property staging refers to decorating and framing a home in a way that will show off its best features and assets to buyers who are looking at the home both in-person on a property viewing. This is increasingly important due to the use of professional photography on estate agents’ online platforms. This area is well served by official associations that offer courses in home staging and photography alongside networking opportunities.

Property staging does not have to entail all the work that would go into a full property makeover. However, the results for the homeowner can be just as important. Whilst an increase in property value is possible, a well-executed property staging is most likely to greatly increase the speed with which a property owner is approached by potential buyers with an offer. This promise of an instant return is more than enough to ensure that property owners are always ready to offer a good sum for a fine staging. In some cases, a property staging might not even require redecoration, but only a good cleaning and restoration of pre-existing assets to bring out their best.

Alongside furnishings and fittings, a staging can also pay attention to how the home is presented online. Quality photography, alongside even more innovative methods like panoramic images, will make a home drastically more appealing to buyers browsing through websites, where nowadays the vast majority of people commence the first stage of their house hunt. The best home staging will arrest those scrolling through results with a stand-out array of photos. Thereby increasing the chances of an in-person viewing, where well-arranged furnishings and decorations will allow buyers to see the full potential of a property.

[5] Property managing agent: long-term earnings

Another way to make money off the property of other people is to work as a managing agent. When property owners lease a property to a tenant, they are beholden to various regulations and rules to ensure that the property is habitable and well maintained. Often, landlords may have a range of properties with little time to maintain them all alongside other duties. This is where a managing agent comes in.

A managing agent’s responsibility is to mediate the relationship between the property owner and tenants. This responsibility is in addition to managing the property itself in accordance with the terms of the lease. Responsibilities can range from day to day general upkeep and maintenance to large scale repairs, as well as face to face dealings with tenants collecting rent payments, arranging insurance and legal cover, and ensuring safety information is well distributed to all the occupants of the building.

Wrap up

Each of these methods represents a lucrative avenue into the world of property trading. These do not require buying a house yourself. The needs of larger property firms ensure that there is always enough work for middlemen and managers looking to create a property portfolio without breaking the bank. This is not to say that the profits made from any of these methods cannot then be reinvested into property itself. Each of these roles represents a strong starting point that brings with it a large amount of hands-on experience. Experience that is invaluable for anyone looking to trade property in the future.