Property deal sourcing is the art of finding, analyzing, and negotiating properties for personal use or selling them to investors. The property deal sourcer saves your time by dealing with all the essential requirements and finding your desired area. Property sourcing is best for you if you have zero interest in researching. Deal sourcers help you research and collect valuable information related to your area of interest. It enables you to find your ideal location suiting your budget.
Here are some reasons why property sourcing is beneficial for you:
- The property sourcers are cost-effective in terms of their vital networking with qualified individuals and companies. They’ll source you the property before it hits the market.
- It minimizes the communication barriers you may face while investing in some foreign property.
- Experienced property sourcers save you from scammers, especially if you are dealing for the first time.
What differentiates a property deal sourcing from a real estate agent?
Real estate agents and property deal sourcers facilitate their clients by buying the right property of their choice. Some aspects differentiate a real estate agent from a property deal sourcer. The method of payment creates a vast difference. A person who sources the deal receives his/her payment based upon the percentage generated by the tenants’ rental or the rent paid by the tenants. On the other hand, a real estate agent gets paid on a commission basis. A deal sourcer is a more skilled and knowledgeable person as compared to a real estate agent.
The following factors differentiate a real estate agent from a property deal sourcer:
- A real estate agent gets paid by the seller, not buyers. So they are more loyal to the sellers as compared to their relationship with investors.
- Your relationship with the real estate agent lasts as long as it takes to seal the deal between the investor and seller. Contrary to it, a property sourcer helps you tenants’ rent research, purchase, rent, or settle your property.
- A deal sourcer helps the seller or even a real estate agent selling the property or finding them potential clients. They allow investors to grow their portfolio with valuable purchases across the globe.
What are the methods of property deal sourcing?
Deal sourcing comes in different ways, such as the traditional method and the online one. There are pros and cons of each technique. Following is the summary of both approaches that help the investor in closing the right deal:
Conventional methods of deal sourcing
The old method of deal sourcing, also known as the conventional method, is decades old. It uses workforce and manual resources. The process is famous among banks and established equity firms looking forward to finding avenues of investment. This method helps the investors in:
- Strong and effective networking
- Building a strong foundation and reputation among investors and companies.
- Establishment among the list of reputable referrals
But the traditional method is not best according to the dynamic states o today’s world. With the challenging environment, it's hard to cope up with modern challenges using this old method. It takes longer to achieve desirable results.
The online or new method used for deal sourcing
With the advancement in technology, the system has shifted online and provides better results than before. This method provides quick and accurate information that’s easy to convert and fulfills the ideal market requirements. The best platforms for deal sourcing these days include Linkedin, Facebook, Twitter, and Instagram. Using the best online platform, you can access any geographical region of your choice and find the deal sources around it.
The automated process enhances market mapping and boosts efficiency. This method has the following techniques over conventional strategies:
- It saves time as there’s no hassle of collecting data manually.
- Collects information related to your deal from different resources and provides one that fulfills your requirements exactly.
- The overhead costs are small, and you no longer have to rely on them.
Roles and Responsibilities of deal sourcer
A property deal sourcer facilitates the investor by fulfilling his duties and offering extra benefits within his means. There are the following roles of property deal investor:
Understanding the expectations of Investors
A comprehensive understanding of the investor’s demands and expectations can help get the ideal location on time.
Property sourcers often know the best deals within the desired location. Their expertise in a particular niche (of locating or sealing the contract) influences the investors. They know the current market rates, pros, and cons of investing in that specific area.
An investment company uses great strategies to source the deal successfully. Deeper connections help them understand the pains, needs, and challenges faced by investors. The detailed discussion of these challenges allows them to find appropriate areas that can bring solutions to them.
Property deal sourcers have an influential association with real estate networks and individuals. Vital networking with such individuals, companies, and real estate agents seal the most creative deals.
Property deal sourcers have a valuable network of investors and sellers that help them hunt and negotiate better deals.
These sourcers help you get information from these companies or real estate networks and get rentals or resell your property. It saves you from the extra cost of consulting a professional real estate agent. Your property sourcer may introduce you to their community, strengthening your interest and partnership goals with experts in this field.
A property sourcer maintains all the records through paper works or software.
Maintaining records of all the major or minor details of expenditures, emails, and investment plays a vital role in closing deals. Records also update the investors regarding their assets and investments. Documentation of records provides claims that prevent future disputes between parties. It also helps to provide details regarding:
- New fixtures
- Monthly rentals
- Mortgages and insurance policies
Effective communication and skills management
A property deal sourcer knows his target market and wins the deal through his practical communication skills. It doesn’t matter what stage of sales and marketing any property sourcer is; his body language, posture, and impressions play an important role in closing the deal. These characteristics hinder communication barriers and boost skills that increase profitability.
Time management and flexibility
A property sourcer with flexible nature saves your time and brings out the best for you.
The flexibility in his nature allows him to work under pressure and put forward the best deals. They know what arrangements to make at any occasion of death, wedding, or moving out. Your sourcer takes your investment headache and allows you to focus on your essential goals without any hassle. He keeps you updated regarding your investment and looks for better opportunities in case of reselling the property.
What kind of Certifications and licenses should investors a Property sourcer have?
Other than the ethical business requirements, some legal requirements are useful for anyone working on investors’ behalf. The property investor should go through the following registrations governed by the Estate AgentAct 1997:
- The Property Ombudsman
- Residential Landlord Association or National Landlord Association
- Professional Indemnity Insurance
Providing these registrations and certificates clears the property deal sourcer’s profile and adds to its credibility. It assures that the deal would be free of scams and all the details would be transparent.
Behaviors and red flags that show a property sourcer isn’t ideal for a job
It’s essential to look around all aspects of property deal sourcer before closing the deal. Your ideal property deal sourcer may still show you some red flags or behavioral signs which indicate their ineligibility for your job.
- Money laundering: If you find your dealer involved in scamming, money laundering, or theft, fire him away at that right moment. If he dares to steal a small section from your investment in the future, he may cause you massive damage.
- Inaccurate information: your sourcer should guide you regarding all the pros and cons of the property. If you find any piece of information misleading, there should be no chance to work with him again. Anything that can harm you or your investment should be a part of the information provided by a property deal sourcer. If not, he is responsible for the damage.
- Ill-reputation: The deal sourcing market is rich with people who share a lousy reputation due to their scams and improper guidance. Hence, even before source dealing, you need to conduct a thorough investigation to assure/verify your decision.
The bottom line
Property sourcing is beneficial for those who are looking forward to getting the best deals with less hassle. The real estate industry is improving every day, providing opportunities to investors and property source dealers. Contacting a source dealer eases the process of inspection, negotiation, purchasing, and other essential aspects that are hard to accomplish on your own.
Getting in touch with a professional property source dealer in the UK market can help you in many ways. In this article, we’ve listed ways how that can help you save your cost and time. Moreover, it helps you in the growth of your portfolio through more robust networking with experienced sourcers. We’ve shared instructions on how carefully choosing a property sourcer can save you from scammers and frauds that can ruin your investment. I hope it helps!