Finding investors for your property sourcing business is a significant part of the success of your business.
What is property sourcing?
Property sourcing is the process of analysing, negotiating and completing on property deals. The process involves researching the area for investment, choosing a strategy to invest and sourcing leads (whether this be via an estate agents or direct) and ultimately deciding which of those leads will provide the best investment opportunities to then make offers and complete on the deal.
Property deal sourcing vs estate agents
Deal sourcing is the service of property sourcing in which a deal sourcer acts on behalf of a property investor to find and secure a property for investment. Whilst this might sound similar to the role of an estate agency, the way that property sourcers and estate agents interact with people and properties is very different. Property sourcers go out to find properties whilst estate agents often advertise these properties, with people approaching them to view them (which may in fact be a property sourcer).
A property sourcing agent should have a good understanding of the property market and can be hired by individuals who wish to invest in property but perhaps lack the time, despite being an experienced property investor, or expertise to find the right property for them. Property sourcers can be used for a variety of investment ends and types of property.
Benefits of a property sourcing
Increased profit and cash flow
A property sourcer might survey a range of possible investment properties in the real estate market to identify the one with potential for refurbishments to be completed by the investor so that the property can be sold at a profit.
Alternatively, they might try and increase a client's monthly cash flow by finding the right property, such as a HMO, that could be put on the rental market to generate monthly income.
A property sourcer might also have a better understanding of what properties are below market value (bmv). For first-time buyers entering the property investment arena, using a sourcing service might be a beneficial way to get an introduction to the property market.
Reduce cost
Using a property sourcer can prove cost-efficient. A good property sourcer will have many connections in the property market as well as the ability to ascertain the genuine worth of a property. This will help them to negotiate a better price for the deal as they have the knowledge and understanding about common structures and fees.
Time
Most investors will most likely not have the time to do all the research necessary to source properties alongside their normal jobs. It is, therefore, better to outsource this to professionals in the field with a number of years of experience as well as connections.
Market knowledge
Most individuals can probably count on their hands how many properties they will buy in their lifetime, a property sourcer on the other hand will be involved in hundreds of property deals. This vast experience, market knowledge and understanding will come in handy when individuals are choosing a property to invest in.
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Reaching success in your property sourcing business
Undoubtedly, you will need a large number of investors. You must have a thorough understanding of the needs of each of these potential clients in order to identify the best offers for them. Each investor will have different business strategies and budgets, and they will all be seeking different opportunities.
How to find investors
Social Groups
Social networking sites such as LinkedIn and Facebook have groups dedicated to property investors and investment service providers. It is a place to share and advise on investment opportunities and can be a good way to find private investors for any projects you have.
Connect with professionals
Letting agents have good knowledge of the local property market and will be in touch with many established landlords who may be seeking to grow their property portfolio. Connecting with letting agents or other key professionals in the property market will be useful for the longevity and success of your business.
Referrals
One of the best ways to get investors for your property sourcing business is through referrals. If you do a good job in assisting your client in their investment journey by finding profitable properties, their success will benefit you. A successful investor will return to you as they will trust your judgement and they will recommend you to their network of other property investors.
Exhibitions and Events
Trade and property networking events catered to property investing are good places to find investors. These events are packed with many property professionals in the field who may be looking to invest or will have access to property investors.
Below are some examples of local trade shows in the UK that could be useful to find property investors.
More casual meet-ups can also be found on Eventbrite that cater to property investors.
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