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In this video, I cover the 6 steps you need to implement to be a property sourcer.
1. 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.
2. 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 ?
3. 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.
4. 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.
5. 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.
6. 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.
Want to get a Quick Start and become a Property Sourcer?
Property Sourcing Compliance – sounds like a bit of a waste of time doesn’t it.
But not if you want to stay legal.
So many people who are property sourcers are simply not compliant, and this puts their business at risk, and in turn their clients too.
This is the Video Introduction to Podcast 117 – Property Sourcing Compliance – you can listen to the podcast now.
Plus – you can get A LOT of information from Tinas website at www.getpropertycompliant.co.uk/
Property Sourcing has become a major obsession for many getting started in property. And rightly so. Being able to source a property legally, at upto 40% off it’s open market value is a powerful skillset to learn.
If you’re wanting to learn how to become a property sourcer, then that podcast is here
The question is, are you doing it legally ?
If you’re a Property Sourcer, and you want to stay above the law (of course you do!) then Tina Walsh can help you get there.
I see so many property sourcers who are not compliant, nows the time to do something about it before you get found out and fined (The penalties even include jail time).
You can reach out to Tina Walsh at her website
But do your research as this is really a very important aspect of your business to get right.
The last thing you need is a knock at the door by the wrong people but it can and will happen.
I get that marketing your property sourcing business is very important, but being compliant as a property sourcer is vital too.
It’s one of those ‘protection’ cards you get in Monopoly (like the ‘get out of jail free’ card) – it doesn’t feel useful when you win it, until you have to go to jail in the monopoly game, and it’s at that point you’re grateful you have it !
So – go and listen to the podcast here
The other thing about Property Sourcing Compliance is that if you want to be in this for the long run, then making sure you’re playing within the confines of the law is essential.
This means sometimes you have to do the right thing, especially when nobody is looking !
The problem with property is that there are so many sharks out there that just want to take your money and not give you anything in return.
Tina Walsh is a client of mine (and an ex-copper!) – and I know just how good she is.
In addition to that, running her property sourcing compliance training is really important to her as she sincerely wants to help other people make money and stay legal too.
Thats one for the reasons we push Tina as THE go to person for Property Surcing Compliance.
So what’s involved in Property Sourcing Compliance then ?
Well who better than to listen tot he expert who lives eats and breathes this stuff ?
Listen to the podcast, or get your self over to one of the Property Sourcing Compliance Training events that Tina runs.
Hope you enjoy it !
Is an investment in property something you are considering?
The difficulty for most is the upfront costs in getting started.
But you can start as a Property Sourcer first which could be your 'side hustle'. This could help you generate the extra cash to go full time as a property investor and even start developing etc.
I've simply seen too many people start up as a 'property sourcer' thinking that there are no regulations, and of course this couldn't be further from the truth.
Do you have any questions about Property Sourcing Compliance that are keeping you from moving forward?
When you are provided with good advice and information, much of the challenge can be removed, which is why we recommend Tina. Read more and get some information that can help you get on your way and even better, make contact with Tina and her Facebook Group.
Remember that property sourcing is all about the numbers. When you're sourcing property to sell on to someone else, there's no point in getting emotional or attached to the place.
But again, I've seen people do just that ! You need to keep your eye on the numbers and make your decisions with your head, not your heart.
Make sure to gain a thorough understanding of local property values. Mortgages and rent in local neighborhoods can help you figure out the home's value better than any financial statement. When you understand what is happening at the street level, your decision will be better informed.
Find a market you enjoy. If you find a market that you like, it can actually help you become successful. No matter if you are a flipper or purchasing properties that require little money down, stick with the things you already understand.
If you want to get into property sourcing but do not have enough money to get coaching, then changing your environment into one thats conducive to your success is vital.
As a Property Sourcer, be very picky about the properties you source for your clients and don't just jump into the first deal just to get one under your belt. They all count, and you need to make sure you get your first one right.
Getting a Property Sourcing Coach can help you find the right deal of course.
Make sure to do your due diligence. Spending sufficient time researching is far easier than getting overwhelmed and over-leveraged. Deals often appear wonderful at face value, but digging deeper than the surface might bring other details about.
Put your trust in the numbers. It may sound obvious, but the numbers are what property investing investing is all about. Numbers don't lie, so do the math you need to do to understand a good investment and then stick with the plan.
Join Facebook forums online that discuss investing. You can learn smart investment tips from the experts. You will be able to ask questions to professionals. Lots of support can be found in investment communities. If you are new to the investment world, you can pick up great tips this way.
A word of warning though about forums.
There are lots of 'know it alls' who have virtually no experience.
I've seen one lady profess that she can't work out how to retire on her property investments and she's been an investor for at least 15 years - I mean - how bad do you have to be !
Just make sure you know who you are dealing with, there are a lot of 'sharks' out there.
Property Sourcing Compliance is no kid's game. It is imperative to know what you are getting into and what you can expect.
Hopefully, this article has given you some critical advice that can help you make some good decisions. The key is gain as much information as possible to ensure your success.