In order to decide if there is a distinct difference between ‘property sourcing’ and ‘deal packaging’, enough to warrant the use of a different description for your business we first have to look at each in turn.
The definition of ‘sourcing’ can be described as the act of searching, finding and evaluating a ‘product’ (property or land in our sector).
The process of ‘sourcing’ may include any or all of the following tasks:
- Identifying a geographical area for investment
- Identifying an investment strategy
- Generating property or land leads
- Filter leads based on potential
- Arrange viewing
- Carry out due diligence on the property or land
- Make offers
Any investor would have to ‘source’ for themselves to find a ‘deal’ to start an investment portfolio or increase an existing portfolio.
A sourcing agent would ‘source’ a ‘deal’ for an investor who is using their ‘property sourcing’ service.
The definition of ‘Packaging’ can be described as to contain, protect, communicate and market a ‘product’ (property or land in our sector).
The process of ‘packaging’ is simple once an offer has been accepted on a property or land then you would ‘package’ the deal up and send to your investor – hence the term ‘Deal Packaging’.
An investor would not have to ‘package’ a deal that they were buying themselves, whereas a ‘property sourcer’ or ‘deal packager’ would package up a deal.
So, is there a difference between Property Sourcing and Deal Packaging?
Some believe that a ‘property sourcer’ provides a much more in-depth service – from sourcing a deal, packaging it, to managing refurbishments, whereas a ‘Deal packager’ simply finds the deal and packages it.
The only difference is the way that each person describes their business. People have caused a lot of confusion over the years as they’ve created all sorts of different titles to describe what they do when operating a business that ‘sources’ for investors.
Often people want to avoid being linked with the ‘sourcing’ sector as it’s had such a poor reputation for being honest, professional and ethical. Some simply want to try to find a loophole to avoid the cost of setting up ‘compliance’ for their business.
There are a number of terms you can define yourself as:
- Property sourcer
- Sourcing agent
- Deal packager
- Portfolio builder
- Deal sourcer
- Property finder
- Deal finder
However, the thing that doesn’t change is that compliance is a legal requirement. There should be NO confusion!
To operate either a ‘Property Sourcing’ or ‘Deal Packaging’ business you would have to master both skill sets – Sourcing and Packaging!