What is Property Sourcing?

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  • Property Sourcing
What is Property Sourcing?

In the property investment sector, the goal of the ‘sourcing’ process is to find a property or land that matches an investors, investment criteria.

A property sourcing agent is a ‘go-between’, a person who finds a property or land that meets an investors investment criteria, packages the deal, and upon completion of the purchase receives a fee for that service.

There are two different ways to Property Source

  1. Find a deal, package and sell to an investor – Get a fee
  1. Find an investor, understand exactly what they want, source it, sell – Get a fee

It is easier and simpler to meet minimum standards required under certain regulations if you find an investor first.

The Four Stage Sourcing process

Stage One – Investor 

  • Find an investor to work with
  • Understand the strategy that they are looking for 
  • Know your patch – Geographical area they want to invest in
  • Secure the investor – Contract
  • Complete Due Diligence – Manual and Electronic procedure
  • Commence sourcing

Stage Two – Sourcing 

  • Generate seller, property or land deal leads 
  • Filter leads based on potential
  • Arrange viewings
  • Carry out viewing 
  • Complete due diligence on the seller, property or land 
  • Make offers

Stage Three – ‘Packaging’ 

  • Create a professional report/brochure for a deal
  • Include all key elements of the deal 
  • Send report/brochure to investor
  • Secure agreement to purchase

Stage Four – ‘Deal Monitoring and Progression’ 

  • Monitoring the purchase progress – Liaising with solicitors and other professionals involved in purchase process.
  • Completing the purchase of any ‘deal’
  • Ensuring sourcing fee paid

Property sourcing when done legally, compliantly and ethically, can provide a lucrative source of income

If you’re completely new to the property investment sector and don’t currently have enough cash to invest yourself, don’t worry – many before have used have used sourcing effectively as a route to build up a larger ‘cash pot’.

They’ve also gained valuable knowledge along the way and developed invaluable long-term relationships with experienced investors.

Our training partner, Property Sourcing Compliance (PSC) provides a short and insightful introduction course into Property Sourcing so you can assess whether this is the right route for you before investing time and money into a new venture.

We also have a Hub post on the cost of setting up your business – make sure to check it out here.