If you’re an investor in the real estate market, interested in either commercial real estate or residential, you know that it’s all about finding good deals. But how do you find those good deals? That’s where property deal sourcing agents come in.
In this blog post, we’ll introduce you to the world of property deal sourcing agents. We’ll talk about what they do, how they find deals, and why they’re so important to investors.
We’ll also give you some tips on how you can become a property deal sourcer yourself.
A property deal sourcer is a person who finds properties that are being sold below the market value. They then present these deals to investors who may be interested in purchasing the property. A property sourcer does not need to be a qualified surveyor or estate agent, but they must have an in-depth knowledge of the local property market to succeed.
If you’re looking to invest in real estate but you don’t have a lot of spare time, then deal sourcers may be the perfect option for you. Deal sourcers are often real estate investors themselves, who buy properties below market value and resell them for a profit.
Deal sourcing can be an excellent way to get into the property market without having to put up much money upfront, whilst making some quick cash.
While some deal sourcers specialise in finding fixer-upper homes, others focus on finding turnkey rental properties or properties that can be flipped for a profit. So whether you’re looking for your first investment property or your next big project, deal sourcers may be the right choice for you!
If you’re interested in becoming a deal sourcer, there are a few things you’ll need. First, you’ll need to have expert knowledge of the local property market where you will operate.
Additionally, you need to be comfortable working with others and have excellent communication skills. Finally, it’s important to have an eye for detail – if you can’t spot a problem when it comes to properties or contracts, then you probably won’t be successful as a deal sourcer.
Despite these challenges, deal sourcers are some of the most successful property investors out there. And given the current state of the market – where prices are constantly rising – there’s never been a better time to get into this line of work!
What Do Real Estate Deal Sources Do?
In short, deal sourcers are real estate professionals who provide property investment deals for investors. They work as independent contractors and are paid a percentage of the total investment made on a property deal, or a fixed fee.
This means that they can make a lot of money if they find properties that meet the investment criteria of their clients.
Deal sourcers are skilled professionals who can help you find the right investment properties. They use their knowledge of the market and their network of contacts to locate properties that meet the specific needs of the investor.
How Do Property Sourcers Find Deals?
There are a few different ways to find investment properties below market value, but the most common way is to look for motivated sellers.
It could be argued that there are an infinite number of reasons why any one person might be motivated to sell their property for a cheaper price.
However, some reasons for selling property for a cheaper price may be more common than others.
The following list includes a few potential reasons why someone may be motivated to sell their property for a cheaper price:
1. They need to sell the property quickly and are willing to sacrifice some profit in order to do so. Common circumstances include divorce and probate.
2. They are facing financial difficulties and need to offload the property as soon as possible in order to free up some cash.
3. They are emigrating or moving to another area and need to sell the property before they go.
4. The property is in poor condition and needs significant repairs or renovation, making it less attractive to buyers who are looking for a ready-made home.
Finding motivated sellers is not always easy, and deal sourcers have many tools in their tool box including online marketing and a mailing list.
What Traits Make a Good Property Deal Sourcer?
There are a few traits that make a good property deal sourcer. The first is the ability to find properties that fit the buyer’s criteria. This means being able to identify what the buyer wants and finding properties that meet these requirements.
It also helps if the sourcer has good negotiation skills, as they will need to get as much money for the property as possible.
Additionally, it is helpful if the sourcer has organizational skills so they can keep track of multiple deals at once without getting overwhelmed.
Finally, it is important for a sourcer to have good people skills in order to build relationships with buyers and sellers. This can be difficult, but it is essential in order to get deals done efficiently.
How Can You Become a Property Deal Sourcer?
To become a successful deal sourcer, you’ll first need to build some extensive knowledge of you local property market.
You will also want to find out about the types of properties and developments that potential investors are looking for during the current climate.
And last, but no means least, you will need to adopt the skills of identifying potential improvements of any particular building or piece of land.
Some experienced sourcers will work with multiple buyers simultaneously in order to get them all interested in a property or piece of land.
Other sourcers will work more closely with one buyer at a time in order to build trust and create an agreement before selling it on.
Regardless of the strategy used, success as a sourcer ultimately comes down to being knowledgeable about the market, having strong negotiation skills, and being able to stay calm under pressure.
It can be a very difficult career path to achieve, so be prepared for long hours and hard work.
The Benefits Of Using A Deal Sourcer
Using a deal sourcer can be extremely beneficial for investors. This is because deal sourcers are able to quickly identify and assess opportunities. They have a deep understanding of the market and what buyers are looking for.
For an investor who is looking to make a purchase, and is cash rich but time poor, a property sourcer can provide the perfect service.
They often work with a wide range of investors and can help them find the right properties for their portfolios.
This means that they have access to a vast network of contacts in the industry. As such, they are able to quickly identify potential partners or customers who may be interested in investing in a particular property.
Sourcers are often able to negotiate a better deal for their clients than they would be able to on their own. This is because they understand the market and how to position themselves in order to get the best possible outcome.
Additionally, they have relationships with a wide range of people, which means that they can tap into resources that individual investors may not be able to find elsewhere.
As such, sourcers can be essential in helping investors identify and capitalise on potential opportunities.
Do I Need To Pay A Deposit To A Property Sourcing Agent?
The answer here is maybe. Some property sourcing agents require a deposit, and others don’t. One of the first things you need to confirm with them is whether you need to pay a deposit before you hire them. And if so, you should look at the level of the deposit before collaborating with them.
The reason some property sourcing agents charge a deposit is because it’s the only way they can guarantee that the buyer will definitely go ahead with a particular investment. And they need some degree of certainty, not only to protect themselves, but also to communicate that certainty to their sellers.
Property buyers are the intermediary between the buyer and seller and therefore they need to ensure that both are on the same page and that a sale is likely to go through.
How Much Will A Deposit Cost?
The cost of the deposit will vary depending on the value of the asset and the terms of the contract. In general, the industry standard for property sourcers is between £500 and £1,000.
At What Stage Should The Deposit Be Paid
There is no set rule that dictates when the deposit needs to be paid, it will depend on the specifics of your property deal.
Be sure to confirm these details with your property sourcer before agreeing to any deals and signing any contracts.
How Will The Deposit Be Protected?
Every property sourcing agency will have different policies regarding deposits, so it’s important that you understand the terms and conditions attached to any deposit you pay. By doing this, you can avoid any unpleasant surprises down the road.
Ideally, your deposit should be paid into an escrow account. This means that the deposit is held with a third party and will provide protection for both the investor and property sourcer.
If the investor doesn’t complete the purchase, the sourcer and seller are protected. And if the seller withdraws from the sale, the sourcer and investor are protected.
Some property sourcers only use personal bank accounts to hold deposits, which are less secure for the investor. So it’s important to check the details regarding deposits before entering any agreements with a property sourcing agent.