Property Sourcing
After getting together a rent to rent portfolio to secure positive cashflow. I then began sourcing (deal packaging) properties. It actually began by accident… I was simply looking for myself and had a JV that fell through and rather than lose the deal I passed the property on to another investor friend who could benefit from it.
To everyone who is out there thinking of sourcing as a get rich quick scheme…. it’s not! It’s hard, hard work. Here are some of my top take homes from sourcing…
Be compliant!! Get registered with the property ombudsman, get ico registered and get insured. In general be aware of all the rules that govern you when sourcing properties.
Give as much information as possible to clients about the deal but give them space and time to do their own full due diligence.
Protect yourself from your client… early on I had clients trying to take my power team from me and take away the deals. In the end I decided to only work with a small group of clients whom I trusted (and this still happened!!)
Get paid your sourcing fee via your solicitor.
Keep records and a CRM system (I keep all pictures, excel sheet and notes online).
Be aware that it may take months for a property deal to go through conveyancing (keep an eye on cash flow for this business as there are many many reasons a property deal can fall out of bed)… in the meantime you should be out looking for and sourcing other properties.
Team up… I’ve worked both alone and part of a team sourcing property. Being part of a team and splitting sourcing fees helps accelerate this business and gives you someone else to talk to about any issues.
Have systems!! At one point I was sourcing 10 properties a month. You need strong systems to be able to keep on top of this...
Once you have viewed enough properties and are re-offering on properties, consider sourcing to demand. At my most prolific sourcing point I was re-offering on around 100 properties!
Have an amazing power team and take care of them.
Be aware you can’t control everything so don’t over-promise. I am a HUGE people pleaser and have found the emotional side of sourcing the most rewarding (how amazing to see people becoming financially independent because of you?!) and also very taxing (for me each refurb, each letting, and each re-valuation was like going through my own). Property is an absolute roller coaster ride, and for me sourcing was like hitching a rid on everyone else’s rollercoasters as well!
Be real with clients… let them know how far along in your property journey you are and what knowledge you have.
You can earn a lot and learn a lot…. consistency is key!! After one year I managed to pay off all my training fees and have a pot to begin investing.
Are you interested in sourcing? Are you a sourcing agent and want to add more tips in here? I’d love to know! Drop me a comment below…
Ana ♡
Want to connect? Find me on insta @dranaattlee, or why not pop along to a meet up? If you think I can accelerate your journey to your goals get in touch or book a coaching session!