Working with a property sourcing agent or investment company is going to help your business grow much quicker. Not only will it free you up for more important tasks but it will also save you a huge amount of time and give you a lot more flexibility when it comes to your investment choices.
Working with a property sourcer can mean bigger discounts, higher rental yields, an easier buying process and access to off-market properties. Today, we are answering a question that was put to us by one of our clients who wanted to know exactly what happens when you first agree to work with a sourcing agent.
Working with property sourcing agents is a great way to grow your portfolio quickly but, of course, you have to pay for their services. Today we look at the kind of deposits you might have to put down to secure a given deal; how much they are, at what stage in the process you might be expected to pay and at how secure they generally are across the industry.
How do you put together a quality property deal for your investors when you’re sourcing property and real estate? The answer is that you only choose properties where you have a full picture of the market in which you’re sourcing and you seek to match like with like, as per the requirements of the niche, property investor you’ll be looking to attract… one that’s happy to pay you more for the services you’ve provided.
As a property sourcer, you can expect to earn a finder fee of between one and five thousand pounds a deal… and that’s quite a spread. To calculate where you are on that spectrum you have to ask yourself a few questions. What is my time worth? How much work am I prepared to put in to develop the deal? And what is the true value of the deal to an investor?
Today Frank asks what kind of contracts you need to have in place if you want to make property sourcing your business. The answer is that you don’t necessarily need contracts at all but that the process will be more straightforward (and you will be more protected) if you do.
The very first property sourcing deal I found using a leaflet was back in 2007.
It was a fantastic deal, a small 2 bed semi-detached house in a great rental area. It wasn’t on the market with any estate agents and in-fact they only contacted me as their mother had received the leaflet and passed it on to them.