How Do We Get Off Market Properties for You?

Last updated: 6.53am, Thursday 10th March 2022 by

In the ever increasing demand and shortgage for On Market properties, how do we get our Off Market properties for you?

by Gordon Campbell
March 2022

With us both being very successful, knowledgeable and experienced professional property investors and landlords with a combined 40 years experience who have also built up a very strong and wide network over the years, individually and collectively.

Our network has been built by the way that we live our lives and in the way we do business, professionally, ethically, morally and the fact that we treat everyone the way we wish to be treated.

Everyone knows what is required, no BS, expectations are met and that combined with clear and effective communication, ensures we always provide the highest level of service.

That is why vendors come to us to sell properties.

They know what they are getting.

No suprises and a job done propertly and professionally.

What is our Criteria?

Due to the strong and professional reputation we have, we get offered many properties every month.

We only take about 70% of all the properties we get offered.

There is a huge amount of work and due diligence involved in securing any property, so from the initial communication with the vendor we will have a very good idea about the area.

We sell predominantly in the Glasgow and its greater metropolitan area so we always ensure it is:

  • the right property
  • in the right condition
  • in the right area
  • at the right price
  • the right yield and return
  • a capital growth area

If it doesn’t work in anyway, we do not take it on to sell it.

Our Due Diligence

A huge amount of diligence is done on every property.

Once we narrow down what properties will work, we will:

  • View every property
  • Know in detail the refurbishment and cost
  • Negotiate the very best price with the vendor
  • Do market comparables. (These are factual and actual comparables from Rightmove Plus, the back office part of the Rightmove portal, which is what estate and letting agents use and subscribe to. A very powerful property tool).
  • Speak to local estate agents
  • Speak to local surveyors
  • Speak to local letting agent

Where Do We Get the Properties?

Direct to Vendor

98% of the properties that Alliance Property Group sell are Direct to Vendor, Off Market and Below Market Value.

That is quite a unique and privileged position to have and be in.

That has evolved in the last few years to where we are today with that proportion being so high.

This is because of the very strong reputation we have, the way that we do business in an easy, uncomplicated, ethical, moral and responsive way, and we are the ‘Go To’ people to get properties sold fast.

The main reasons the sellers are looking to sell quick is because of the 3 Ds of Death, Divorce and Debt.

They must sell quick, usually, so by getting a mutually agreed discount on the market value, we can sell quickly and complete a sale in 4 to 6 weeks.

This is a quick, easy and stress-free process for the vendor and all the benefits that are passed onto you.

Estate Agents

This is an obvious one and the way in which most of the housing stock in the country changes hands.

It is very rare for us to sell an on-market property but with the strong relationships we have with some agents they will come to us if a landlord is looking to sell a portfolio or property that is more problematic or requires a quick sale.

The agent knows that when we negotiate and agree terms that the sale will be in safe hands and a win win for everyone.

Auction

Auctions are not a strategy for us.

There can be some good deals that can be got at auction but they can be complicated in so many ways and hugely time consuming with no guarantee of success.

The price may appear to be attractive when it is listed but that is a guide price and if it is a decent property it will sell well over the guide price and no value in the deal.

Portfolios

This can be regarded as another Holy Grail, however a lot of issues can arise on portfolios.

We do get them and the ones we decide to sell are tremendious opportunities.

In several cases when we are offered portfolios, we will look to sell some of the properties individually because of some issues.

The major ones are:

  • Unrealistic Vendors - every vendor thinks that their portfolio, and sometimes individual property, is worth more than it is.

  • Lack of motivation - the portfolio makes a profit or, even when breaking even, is not causing any issues, so there are no “pain points”.

  • All the money has already been sucked out of it. Leverage is at 75-85% LTV and there is no headroom to do a deal.

  • It is poorly managed, usually self-managed by the vendor and can be problematic and it is in a poor state of repair.

    Sourcing Agents

  • This makes up a small proportion of properties we get and sell but we work with some great, like minded sourcing agents.

  • We only work with like minded sourcing agents as unfortunately there are too may who do not understand how the industry works, cannot deliver genuinely solid stock, not the same principles as us and can be time wasting for us.

  • That’s why we also only work with like-minded people and businesses in our power team.

  • With the sourcers we work with, the properties they get and source are for themselves and sometimes they are not in a position to buy it so they offer it to us.

  • Sometimes it is a property they have been offered off market and they don’t have the client base or reach to sell it so it is passed onto us and a commission is paid to them.

Direct from receivers (last but not least!)

This strand is often viewed as the ultimate Holy Grail.

You will, as you progress, come across agents that deal with receivership properties and again we have built up good relationships with estate agents and Bank Receivership/Asset Management Companies that deal with repossession/foreclosure properties as they know they are dealing with serious, experienced, knowledgeable property professionals in Alliance Property Group.

There is an established system, including that the agents/business owners cannot go anywhere near these properties because of the obvious conflict of interest.

This creates a clear opportunity, and there is a networking angle here - lots and lots and lots of hard work may lead to profitable relationships.

Remember that in the UK properties that have been repossessed need to be shown to market, and public notice given for any offers made.

There can be mentions about stock that moves through the “side door” in these situations.

That simply does not happen on properties from receivers or properties we get from estate agents.

They can’t, it’s not legal or ethical for that to be done.

Summary

We hope that will give you an insight to the immense work and diligence that we do before property deal proposal are issued.

Also, the care, passion, desire and professional approach that we do in everything we do for you to give you that leading edge in property.

Thank you for reading