PROPERY SOURCING, DEAL PACKAGING & MORE – COMPLETE GUIDE!
Jordane Thompson
February 22nd, 2022
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Start your property portfolio today!
approached companies such as ourselves for investment opportunities, but what exactly does it all mean?
What’s the difference between the two?
Not to worry, in this guide, we’ll touch on everything that you need to know about property sourcing which will be useful if you are looking to invest or even if you’re interested in becoming a property sourcer yourself.
WHAT EXACTLY IS PROPERTY SOURCING?
It’s what we do in our day to day jobs! Property Sourcing is the activity of finding property deals, negotiating with the seller and packaging the deal up in a presentable way with all the figures on information to investors – which takes all the leg work out of trawling through Rightmove for the investor.
How is this different from what an estate agent does? It’s a more skilled and knowledgeable role as it’s more about finding the potential in a property, looking into it’s growth and what potential yields you can expect. In order to get a full picture of the property and present it to their investors list a property sourcer researches information like:
- Area demographics, crime rates and population type.
- Growth of house prices in the area over the past few years.
- Potential tenants in the area and the rent you can attract.
- What type of investor it might be suitable for, private tenant, HMO, serviced apartment etc.
WHAT DOES DEAL PACKAGING MEAN?
It’s essentially the service that we provide, and in a nutshell, it’s packaging up the deal to ensure everything is done for you as an investor. We provide all the information stated above, presenting the investor with all the information they need to make the investment and taking any stress, hassle or time out of finding the deals themselves.
Usually, for doing this there is a fee that the investor will pay.
It’s an appealing prospect for investors that want to be completely hands-off in the process, as it’s a lot less time consuming and the deal that a property sourcing company will find is often better than an investor will be able to.
IS THERE A DIFFERENCE BETWEEN THE TWO?
Some articles will state there is a difference between the “sourcer” & “packager” – the way it’s often described is the sourcing agent is responsible for finding a suitable property deal, the deal packaging agent is required to find out everything about the property and the local area to provide a full overview and information about the property.
But we think it goes hand in hand.
How can you be expected to spot a deal as a property sourcing agent, without having the full insight and knowledge of the local area? Our property sourcing agents are also the ones who package the deals and send them out to our investors, we’re an all-rounded bunch!
As the UK’s leading property sourcing company, we can help you find investment properties across England and Wales. Join us today!
HOW DO PROPERTY SOURCING COMPANIES FIND DEALS?
We’re actually a little bit different, the deals come directly to us. We’re part of a group of companies that includes a cash property buyer, and they get hundreds of people every month looking to sell their properties and often below market value. We are able to handpick the properties that we feel will package up as a great deal for our investor database, or if we know a property will meet one of our investor’s criteria.
If you’re not as lucky as us in terms of having a source of leads readily available, there are a few things that you can do to get going. Firstly, your task is to find motivated sellers, the way many choose to do this is using social media, Facebook, LinkedIn, Twitter and Instagram to network with potential investors and property sellers. It’s the toughest and most time-consuming part, but you need to build up a reputation for yourself, joining groups and the correct conversations to find the best opportunities.
WHAT DOES IT TAKE TO GET INTO PROPERTY SOURCING?
Interested in getting into property sourcing? Not to worry, we welcome the competition! But what does it take, what skills do you need to have in order to be successful in the industry? We go through everything here:
An understanding of what investors want
This is key to the process, as you might imagine. You need to put yourself in the investor’s shoes when you’re looking at sourcing properties, understanding their ideal locations, expectations and demands.
Then it’s up to you to display your expertise of finding a property that fits your investor’s requirements and match up the two. You should know the current market trends, the pros and cons of certain areas and be able to help and influence the investors to try and get them the best deal.
Strong skills in networking
This is integral to your success, you need to be able to network and build connections with anyone associated with real estate, from individuals to large companies, the more connections you have in your network the more beneficial it will be.
Your network will make your job so much easier, it helps you with the hunting for deals and also building a database of investors that might be interested in them.
Keeping all the records and information
A LOT of the role is admin. You need to keep notes and information on each of the potential investors you have to know what they might be interested in, as well as on the other side, keeping notes on properties and what the sellers wanted to achieve so you can easily match up the two.
It’s easy enough when you only have a couple of interested parties, but as your network grows it can become really hard to manage so you need to ensure you keep all the records and information you possibly can.
Great communication
Another piece of the puzzle is the communication aspect, you need to constantly keep everyone up to date. You also need to be confident in your ability and knowledge to be able to help and guide investors towards deals that you have available.
Time management and flexibility
Remember that the key aspect of this, the way your make money is by making it easier and less time consuming for investors. In essence, you’re sacrificing your time to find them great deals – so time management is key in order to maximise your profit potential.
An eye for a good deal!
This should go without saying, but you need to be able to spot a good property deal when you see it. Knowledge of an area, the idea of rental prices and market trends will really put you ahead of the competition. Having this eye and knack for a deal buys you precious time allowing you to get the property in front of investors quicker than anyone else.
Certifications and licences
If you are sourcing property, there also might be some legal requirements that you have to abide by which are detailed in the Estate Agent Act 1997 which is The Property Ombudsman. You might also want to look into joining the Residential Landlord Association or National Landlord Association and Professional Indemnity Insurance just to make you look more credible and professional.
ARE THERE ANY FEES INVOLVED?
General with property sourcing there is a fee involved, and they range quite significantly. The majority of sourcing fees are between £1,000 and £5,000 thousand pounds, and it’s also often referred to as a “finders fee”. The fee usually reflects how good the deal is, and how much work has ultimately been put into finding the property.
As for deciding how much you should charge for your fee if you are a property sourcer, what is your time worth and how much value are you providing? What we’re really saying is it’s completely up to you what you charge, investors just need to be willing to pay it.
Start your property portfolio today!
approached companies such as ourselves for investment opportunities, but what exactly does it all mean?
What’s the difference between the two?
Not to worry, in this guide, we’ll touch on everything that you need to know about property sourcing which will be useful if you are looking to invest or even if you’re interested in becoming a property sourcer yourself.
WHAT EXACTLY IS PROPERTY SOURCING?
It’s what we do in our day to day jobs! Property Sourcing is the activity of finding property deals, negotiating with the seller and packaging the deal up in a presentable way with all the figures on information to investors – which takes all the leg work out of trawling through Rightmove for the investor.
How is this different from what an estate agent does? It’s a more skilled and knowledgeable role as it’s more about finding the potential in a property, looking into it’s growth and what potential yields you can expect. In order to get a full picture of the property and present it to their investors list a property sourcer researches information like:
- Area demographics, crime rates and population type.
- Growth of house prices in the area over the past few years.
- Potential tenants in the area and the rent you can attract.
- What type of investor it might be suitable for, private tenant, HMO, serviced apartment etc.
WHAT DOES DEAL PACKAGING MEAN?
It’s essentially the service that we provide, and in a nutshell, it’s packaging up the deal to ensure everything is done for you as an investor. We provide all the information stated above, presenting the investor with all the information they need to make the investment and taking any stress, hassle or time out of finding the deals themselves.
Usually, for doing this there is a fee that the investor will pay.
It’s an appealing prospect for investors that want to be completely hands-off in the process, as it’s a lot less time consuming and the deal that a property sourcing company will find is often better than an investor will be able to.
As the UK’s leading property sourcing company, we can help you find investment properties across England and Wales. Join us today!
IS THERE A DIFFERENCE BETWEEN THE TWO?
Some articles will state there is a difference between the “sourcer” & “packager” – the way it’s often described is the sourcing agent is responsible for finding a suitable property deal, the deal packaging agent is required to find out everything about the property and the local area to provide a full overview and information about the property.
But we think it goes hand in hand.
How can you be expected to spot a deal as a property sourcing agent, without having the full insight and knowledge of the local area? Our property sourcing agents are also the ones who package the deals and send them out to our investors, we’re an all-rounded bunch!
HOW DO PROPERTY SOURCING COMPANIES FIND DEALS?
We’re actually a little bit different, the deals come directly to us. We’re part of a group of companies that includes a cash property buyer, and they get hundreds of people every month looking to sell their properties and often below market value. We are able to handpick the properties that we feel will package up as a great deal for our investor database, or if we know a property will meet one of our investor’s criteria.
If you’re not as lucky as us in terms of having a source of leads readily available, there are a few things that you can do to get going. Firstly, your task is to find motivated sellers, the way many choose to do this is using social media, Facebook, LinkedIn, Twitter and Instagram to network with potential investors and property sellers. It’s the toughest and most time-consuming part, but you need to build up a reputation for yourself, joining groups and the correct conversations to find the best opportunities.
WHAT DOES IT TAKE TO GET INTO PROPERTY SOURCING?
Interested in getting into property sourcing? Not to worry, we welcome the competition! But what does it take, what skills do you need to have in order to be successful in the industry? We go through everything here:
An understanding of what investors want
This is key to the process, as you might imagine. You need to put yourself in the investor’s shoes when you’re looking at sourcing properties, understanding their ideal locations, expectations and demands.
Then it’s up to you to display your expertise of finding a property that fits your investor’s requirements and match up the two. You should know the current market trends, the pros and cons of certain areas and be able to help and influence the investors to try and get them the best deal.
Strong skills in networking
This is integral to your success, you need to be able to network and build connections with anyone associated with real estate, from individuals to large companies, the more connections you have in your network the more beneficial it will be.
Your network will make your job so much easier, it helps you with the hunting for deals and also building a database of investors that might be interested in them.
Keeping all the records and information
A LOT of the role is admin. You need to keep notes and information on each of the potential investors you have to know what they might be interested in, as well as on the other side, keeping notes on properties and what the sellers wanted to achieve so you can easily match up the two.
It’s easy enough when you only have a couple of interested parties, but as your network grows it can become really hard to manage so you need to ensure you keep all the records and information you possibly can.
Great communication
Another piece of the puzzle is the communication aspect, you need to constantly keep everyone up to date. You also need to be confident in your ability and knowledge to be able to help and guide investors towards deals that you have available.
Time management and flexibility
Remember that the key aspect of this, the way your make money is by making it easier and less time consuming for investors. In essence, you’re sacrificing your time to find them great deals – so time management is key in order to maximise your profit potential.
An eye for a good deal!
This should go without saying, but you need to be able to spot a good property deal when you see it. Knowledge of an area, the idea of rental prices and market trends will really put you ahead of the competition. Having this eye and knack for a deal buys you precious time allowing you to get the property in front of investors quicker than anyone else.
Certifications and licences
If you are sourcing property, there also might be some legal requirements that you have to abide by which are detailed in the Estate Agent Act 1997 which is The Property Ombudsman. You might also want to look into joining the Residential Landlord Association or National Landlord Association and Professional Indemnity Insurance just to make you look more credible and professional.
ARE THERE ANY FEES INVOLVED?
General with property sourcing there is a fee involved, and they range quite significantly. The majority of sourcing fees are between £1,000 and £5,000 thousand pounds, and it’s also often referred to as a “finders fee”. The fee usually reflects how good the deal is, and how much work has ultimately been put into finding the property.
As for deciding how much you should charge for your fee if you are a property sourcer, what is your time worth and how much value are you providing? What we’re really saying is it’s completely up to you what you charge, investors just need to be willing to pay it.
Large discounts on property
Completely transparent
Tailored investment opportunities
We’ll handle everything for you
Looking for hassle free property?
We’ve got you! Whatever your motivations as a landlord or property owner are, we can help source and match property with you.
When the foundations of your company are built upon industry knowledge and experience, you can’t help but be a self-confident company.
Here at The Property Sourcing Company, we are led by a roster of industry experts who have over 50 years of combined experience in doing BMV property deals, as well as packaging them up for investors.
Quality sits at the heart of our team, who go the extra mile to tailor our service to you. We pride ourselves in our ability to source you a wide variety of high-yield property investments.
Get in touch and we’ll establish what type of property you’re searching for, before talking you through our current investment opportunities. We’ll also keep you posted as we acquire new deals.
When you buy your investment property through us and we’ll take care of solicitors, surveys – everything – all to ensure you have a stress-free property purchase. It’s just one of the ways we make investment work for you.
Why invest with us?
Simply put, we’ll get you the best possible deal. Our sister company, The Property Buying Company, have been in the property buying industry for years & we have access to all their stock which is at a price point that is ready for investors to buy and make a great return on.
No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.
