17 Aug Why become a professional deal sourcer?
If you have more time than cash, deal sourcing is a great way to make money from property investment – and learn a lot at the same time.
If you’re an experienced property investor, it’s a way to use your knowledge to boost your income. And if you’re not so seasoned, you can start small and build up your experience.
What is a deal sourcer?
Essentially, a deal sourcer finds properties for investors. However, their role can extend to cover much more than that.
The sourcer will usually carry out full negotiations before handing over the deal to a property investor. In some instances, their role may just be making the vital initial connections between investor and vendor.
The scope of the deal sourcers role will usually involve chasing up and liaising with all parties involved as the deal progresses, including brokers, solicitors, agents and developers.
The fee is usually a percentage of the price being paid for the property but will depend if additional work is involved, for example: organising refurbishment, furniture, tenants etc.
What does it take to become a deal sourcer?
Anyone can set themselves up in this role; however, it helps to have an understanding of the property investment market – or be willing to learn fast! You will also need to register with certain organisations to become compliant.
It takes a certain amount of confidence to embark on this strategy as you’ll need to be at ease with negotiations. Good communication skills are essential as you’ll be spending lots of time on the telephone or in face-to-face meetings.
Marketing and sales experience also help as you’ll be required to generate leads and sell an idea. Tenacity is another valuable attribute as you’ll need to hang in there till the deal is done.
Can you project manage too?
As well as the initial stages of rooting out potential property deals and making connections, you can choose to take it a step further.
Some property investors are quite willing to pay for someone to manage their investment, either long-term or just in the initial set-up phase.
This could include project managing a refurbishment of one or more properties. And/or sourcing potential tenants and possibly ongoing management of lettings.
All of this depends on how much time you have to put into the job. If you’re willing to take on these aspects of the project’s management, then make sure it’s reflected in your contract. You want to ensure you’re paid for the work you do.
How to get started
If you’re already an experienced property investor, then it’s not difficult to get up and running – simply put the word out to your network of contacts.
But if you’re relatively new to property investment, then start with learning about the different strategies, finding some sound potential deals and seeing what interest is out there for them. If you’re willing to put in the research hours, it’s a great way to learn on the job.
Deal sourcing gives you a wider range of experience of the property market than you’d be exposed to if you only have your own money to invest. The key to making it work is to do your homework and build a solid foundation of knowledge and connections.
Would you like to learn more about property investment?
We’ve recently launched two brand new online property investment courses:
Property Investing Masterclass – An Introduction to Property Investing
This course will provide you with an introduction to property investment, whether you’re new, intermediate or experienced.
House of Multiple Occupancy Masterclass – Live Recording
This course will give you a better understanding of one of the most popular and financially rewarding property strategies in the UK.
Plus, we’re delighted to introduce PMA Property Mentor Elite Online & Personal to motivate, inspire and challenge you to achieve your personal and business goals.
All of our mentors are experienced industry professionals with years of experience AND are all active investors.
Email firstname.lastname@example.org or phone 01252 730040 to be the first to take advantage of this brand new online mentoring service.
You can also use my calendar to schedule a call at https://go.oncehub.com/MarkLloyd and book a 30-minute slot.