Property sourcing may be a very lucrative profession, but it requires work ethic, experience, ability, and the right connections, much as any other profession. Let’s take a look at each of these fundamentals one by one to see if you’ve got what it takes to succeed in the world of property sourcing. To begin, you must first establish the necessary foundations. Form a business to fulfill your legal responsibilities.
The legal aspects of working as a property finder
From the beginning, you must learn how to run your ethical sourcing business. You will be regulated by the Estate Agents Act 1979 and you will be working on behalf of the buyer in locating the house.
You will also need to:
- Become a member of a property ombudsman organization, such as The Property Ombudsman (TPO)
- Be registered in the Information Commissioner’s Office (ICO) (ICO)
- Join a specialist organization such as the National Landlords Association (NLA) or the Residential Landlords Association (RLA) (RLA)
- Be sure you’re covered by technical indemnity insurance.
A Terms of Business document outlining what you offer and a Heads of Terms document are also helpful to prospective clients and serve to protect you. You should work with a legal professional who can help you create these.
Before you start, get your legal affairs in order; this will serve as the foundation for your success.
Connections needed to be a successful property sourcer
Of course, you must have a large number of investors on your papers. Not only that, but you must get to know each of these potential customers well in order to find the best deals for them. Investors are not all looking for the same type of opportunity; they will have different business plans and budgets.
Put in the effort to not only develop your network, but also your understanding of it. It helps if you are a natural networker and love being with people. So, if you have excellent leadership skills and a natural ability to develop relationships and affect others, property sourcing can be the profession for you!
To become a property sourcer, you must have the following knowledge and skills
In addition to coordination and networking abilities, the following characteristics are advantageous:
- Market knowledge: the opportunity to find a deal
- Negotiation abilities: the desire to reach a fair agreement with the best properties.
- You must be good with statistics in order to demonstrate the benefit to prospective investors.
- Sales abilities: You must be able to show your offer to customers and persuade them to make a decision.
- Organized: the opportunity to keep track of several tasks and efficiently plan your time.
- Patience: certain transactions will take a long time to complete!
To become a property sourcer, you must have a strong work ethic
Property sourcing is not for those looking for a “fast buck.” But once again, there isn’t much. If you want to be a good property sourcer, or successful at something else in life, you must put in the effort. Job that requires you to give your all in the process and to rinse and repeat for several years.
You must actively increase your skills, expand your network, improve yourself, and persevere. You will make a lot of money if you are able to do so.
Making it easy for new sourcers to get started
We’ve spent years studying and analyzing the best in the industry to figure out what it takes to be a good property sourcer, and we’ve established the characteristics mentioned in this article as a result of our research.
Then we went a little ahead. We tried to overcome some of these ‘problems’ and remove some of the obstacles that new sourcers encountered when starting out.
There is plenty of Proptech Software to pick from if you are looking for Properties in the UK. One of the most well-known is DealSourcing. This proptech software was effective in automating the process and creating a portal that serves as your personal property sourcer. Thanks to algorithms and automation, the app can locate properties from all over the internet and sort them by ROI.
It saves you time, money, and effort! The ability of this tool to find high-yield assets is its primary feature. If you want to invest in Buy-To-Let properties, DealSourcing.co is a must-have.
The software also calculates the return on investment on every property on Rightmove and identifies properties for sale that are below the market value, saving buyers hours of research time.
The Top 3 Most Useful Use Cases of DealSourcing.co:
- BTL & HMO Deal Analyser
Forgot your property spreadsheets. They measure the cash balance for each transaction without the use of a spreadsheet or calculator. Calculate your overall offer, taking into account all expenses, Stamp Duties, earnings, or even the risk of trying to leave money on the table.
- Find High Yield properties by location
They examined information from almost 500,000 homes in England, Scotland, and Wales. Their main goal is to figure out which postcodes have the best buy-to-let yield.
- Find negative equity properties by location
A house is considered to be in negative equity if its value is less than the mortgage secured on it. They help you find those offers based on your location.
Brought to you by DealSourcing.co.
DealSourcing.co gives you control over the power of automation. With the click of a button, you can search over 200,000+ Below Market Value deals (Buy-To-Let, HMOs, and BRRR) with ROIs of over 15%. With our simple and easy-to-use tools, you can find high-yield properties quickly.