5 Simple Steps To Becoming A Property Sourcer : An easy way to start generating income from property
For those people who are ready to start in property but either can’t get a deposit together, or can’t get a mortgage, you can still make a great income on the side by becoming a property sourcer.
The beauty of doing this, is that when you can eventually fund the deposit, or you apply for the mortgage then you’ll already be in a great position to buy property Below Market Value (BMV) as you’re become an expert at finding deals.
So to help you, i’ve identified the simple 5 steps I help my clients create that will help you on your journey into becoming a Property Sourcer.
Obviously, in an article such as this, it’s not possible to go into the ins and outs as to how you put this together in detail.
So here’s the summary :
- Find the deal : You always need to be on the lookout for potential deals. There are various ways of finding property deals, including dropping leaflets, websites, advertising and so on. The key is in consistency, getting the wording right on the adverts and so on.
- Qualify the deal : Is it really Below Market Value, or is it really just at market value. What works need doing on the property? What’s the rental value ?
- Present the deal : You will need to ‘top and tail’ this deal into a format that is attractive and easily readable to your potential investors. So you need to create some form of .pdf that you can email out to people. In addition to this you will also need to provide a professional looking profile for you, as people buy from people they know, like and trust. Building your reputation is important. It can take 10 years to build and only a few seconds to ruin it. So build it well.
- Build Your Investor List : You need a database of potential investors that can potentially buy that deal from you. Once you have this, any deal you come up with can be sold much quicker than finding the deal and then struggling to actually sell it. Building up a good list of potential purchasers is vital.
- Become the Broker : If you don’t want to actually do the sourcing work, you can work with other property sourcers and help sell their deals, in return for part of the sourcing fee. This makes you the middle person – you will need 2 databases. The first database will be the people who source deals. The second database is the people who will buy the deal from you.
- Legal Obligations : Are you aware of your legal obligations ? Are you acting as an Estate Agency ? If so, then you will need to abide by the requirements set down for all Estate Agents. Too many Property Sourcers get this wrong and do not comply with the law. It’s an important point.
You may notice I added an extra step for you to watch out for ! The legal side is SO important it was worth mentioning.
I hope you liked these Simple Steps To Becoming A Property Sourcer.
As an overall strategy you can see that this type of income generation can be very lucrative in terms of generating income through Property Sourcing.
Many of my clients choose to become Property Sourcers to great effect – you can even read a case study about one of them here – Success Stories, along with finding out about how some of my other clients have performed.
Do these 5 steps well, by the end of next week, you can get your first deal – but as ever it always depends on doing the work.
What to do next
Apply For A Strategy Session and Let’s See If We Can Help You Get Started Too
Want More Property Sourcing Advice?
Why not download my Free Property Coaching & Wealth Creation Podcast from iTunes.