For those looking to earn a living in the property industry, but who don’t want to deal with renovations and tenants, becoming a property sourcer is an appealing option. It’s not as common as being an investor, but the barrier to entry is a lot lower.
A property sourcer is an intermediary between a property buyer and seller. They find off-market or below market value (BMV) properties for their clients, who are usually investors looking to purchase homes at a discount in order to renovate and sell them on at a profit.
Property sourcing agents work by building relationships with estate agents, developers, auction houses and other potential sellers of below market value properties. By doing this they gain access to information about upcoming sales which their clients would not be able to obtain themselves and can quickly find suitable properties for investors.
They are also heavily reliant on digital advertising to attract potential sellers before they hit the traditional route of appointing an estate agent.
Most importantly, property sourcers must have an in-depth understanding of the local housing market so that they can identify areas where there is high demand but low supply – thereby increasing the chances of their clients getting a good deal on a purchase.
How does property sourcing work?
A property sourcer helps investors find good property deals. They use their knowledge of the market and their network of contacts to find sites that meet the investor’s criteria.
They are often paid a commission by the investor, but they can also work for a real estate company or be self-employed.
Sourcing generally involves three main steps:
- Attracting investors ready to make a purchase;
- finding properties that fit the investor’s criteria, and
- negotiating a purchase price with the seller.
The first step often requires advertising, brand building and networking. The second step requires research and networking, while the final step usually relies on negotiation skills.
Attracting investors ready to make a purchase
Investors are always looking for new, quality properties to invest in. By targeting investors who are already interested in purchasing property, you can amplify your efforts and increase the chances of a successful sale.
Consider conducting market research to identify potential investors who fit your target demographic. By understanding what interests these individuals, you can create targeted marketing campaigns that appeal to them.
Additionally, be sure to create detailed sales presentations that showcase the property’s features and highlights.
Finally, provide thorough documentation throughout the process so that buyers feel confident about their investment decision.
There are some who turn this into a full-time property business; to do so you’ll need to invest in a website and pipeline management system; our recommendation is propertypipeline.pro.
Finding properties that fit the investor’s criteria
The first step in finding properties that fit the investor’s criteria is to develop a list of factors to consider when looking at potential investments.
These factors can include: location, size, layout, age and condition of the property, and current market conditions.
Once the list has been compiled, it can be narrowed down further by focusing on specific types of properties or areas within a city or region.
Additionally, the investor should keep in mind their investment goals and make sure any property they invest in aligns with those goals.
One of the tools in any property sources arsenal is a ‘motivated seller site’. This is a special website that has one job only: getting contact details of people looking to sell a property.
You might be worried that having two websites is going to cost a lot of money, but don’t worry, one of the reasons I recommend propertypipeline.pro is because they provide you with BOTH types of website and a way to manage all the contacts you collect.
Negotiating a purchase price with the seller
When negotiating a purchase price with the seller, it is important to remember that they are usually trying to sell the property quickly, without paying for estate agents.
Some tips for negotiating a purchase price with the seller include:
- Be prepared to offer a significantly lower initial offer than what you are initially thinking of, this will give you a chance to be negotiated up, if the seller decides to negotiate in earnest.
- Be prepared to walk away from the deal if the seller does not agree to your proposed purchase price – this will send a clear message that you are not willing or able to overpay for the property.
- Do your research before meeting with the seller – know exactly what type of property you are looking for and have any questions about it completely answered by either visiting or speaking with them formally (in person, by phone, etc.). This will help minimise any misunderstandings during negotiations and increase chances of coming up with an agreement you can both be happy with.
If you do end up walking away from a deal, it’s important to have a system in place that will automatically follow up with them after a period of time (you guessed it, propertypipeline.pro does this). It’s amazing how much better your offer will look to a seller if they’ve still not sold their property after a couple of months!
The benefits of being a property sourcer
If you’re a potential property sourcer one of the main questions you’ll have will be about the benefits of the job.
You’ll enjoy a number of benefits, among them is the ability to control your own income. As an independent contractor, you can set your own hours and rates.
This flexibility makes property sourcing an attractive option for those looking to supplement their income or earn a full-time living.
In addition, they have the potential to earn a significant amount of money through commissions and bonuses.
And because you work with other people looking to invest money, you don’t require a large amount of cash to get started.
So, if you’re interested in becoming your own boss and earning good money while doing it, then learning how to become a poperty sourcer may be the right choice for you.
Benefits of using a property sourcer
Why do people use property sourcing over visiting local estate agents?
Access to more deals: By working with a property sourcer, you will have access to more deals than you would if you were searching on your own. This is because they have access to off-market listings and can often negotiate better prices on properties.
Save time: Searching for investment properties can be a time-consuming process. By working with a sourcer, you can save time as they will do the legwork for you.
Get expert advice: A good property sourcer will be able to offer expert advice and guidance on finding and acquiring investment properties. This can be invaluable for anyone new to investing in real estate.
Find the right property at the right price. Finding the perfect property at the right price is an ongoing challenge for property investors. There are a number of factors to consider, including location, size, and amenities. It can be difficult to determine which properties will fit your needs and meet your budget, so why not let someone else do it for you?
How to become a property sourcer
There is no set path to becoming a property sourcer. However, many people who are successful in this field have a background in real estate or property investment.
A good place to start is to read up on the compliance elements of this role, I recommend picking up the book Property Sourcing Compliance.
Next, you’ll need to create a pipeline system for investors and potential sellers. Although it can be done using lots of different systems, I highly recommend propertypipeline.pro as it’s an all-in-one system created by a team heavily involved in the property market.
Not only can they get you up and running in around 14 days, they can also give you help and advice in areas such as marketing, which is a must if you want to find buyers and sellers.
This has the potential to turn into a successful small business, so you should also check out this article: How do you build a successful property sourcing business?
Finally, you’ll want to prepare an investment pack, which will help explain to property investors who you are, what you can do for them and why they should use you.
As a property investor, you have to start looking for opportunities and that is where property sourcing comes in. It can be a very lucrative business when done well.
Of course, it’s not a path you should take without any experience or access to expert guidance to be truly successful; remember that there is no sure thing as a guaranteed money making new business, so be sure to do your research first before committing time and money to this opportunity.
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