What I do need to do to become a Deal Sourcer?

A property deal sourcer is an individual or company that finds and sources profitable real estate investment opportunities for buyers, investors, or developers. They act as intermediaries, connecting sellers with buyers and ensuring that the deals they present are viable and attractive for investors.

Here’s what a property deal source typically does:

1. Identifying Opportunities – They search for properties that are undervalued, have potential for high returns, or fit specific investment criteria (e.g., below market value, distressed properties, etc.).
2. Due Diligence – They perform the necessary research and checks on properties, including legal considerations, market conditions, and any potential risks or opportunities.
3. Negotiation – Deal sources often handle negotiations between buyers and sellers, ensuring that both parties reach a favourable agreement.
4. Connecting Investors and Sellers – They bring sellers and buyers together, often providing the investor with exclusive off-market deals or opportunities that are not widely available to the general public.
5. Add Value – Deal sourcers may add extra value by offering property management, refurbishing, or project management services to make the investment process smoother for the buyer.
6. Commissions – Deal sources typically earn a fee or commission once a deal is successfully completed.

In essence, a property deal source provides the expertise, network, and knowledge to find profitable property deals and facilitate the transaction process for investors, ensuring they get the best value for their money.

Can I make any money doing a Property Deal Source?

Yes, you can make money by being a property deal sourcing, and it can be a profitable business if you have the right skills, knowledge, and network. Here’s how you can make money:

1. Sourcing Fees/Commission

Deal sources typically earn a commission or fee for finding and securing property deals for investors. The fee is usually a percentage of the deal value, ranging from £1,000 to £10,000 or more, depending on the deal size and complexity.

2. Finding Off-Market Deals

As a sourcer, you can focus on finding off-market properties (deals that aren’t listed on public property sites), which are often more profitable. Investors are willing to pay a premium for these types of deals, especially when they offer the potential for high returns.

3. Working with Multiple Investors

You don’t have to rely on just one investor. By building a solid network, you can source deals for multiple investors at the same time, increasing your potential income from various commissions.

4. Joint Ventures (JVs)

In some cases, you can enter into a Joint Venture with investors. You may find the deal, and the investor will finance or develop the property, and then you share the profits. This can significantly increase your earnings, especially if you find high-value properties.

5. Property Refurbishments

In addition to sourcing, you may be able to offer a service for managing refurbishments or renovations, which can earn you more money from the same deal.

6. Repeat Business and Referrals

By consistently sourcing profitable deals, you can build a strong reputation in the industry. Happy investors may refer you to others or keep coming back for more deals, which means steady income and a growing business.

How Much Can You Make?

• Per Deal: As a property deal sourcer, you can earn between £1,000 and £10,000+ per deal, depending on the deal’s size and location.
• Annual Earnings: If you source several deals each month, you can potentially earn £50,000 – £100,000+ per year, especially if you’re working with high-net-worth investors or larger deals.

What You Need to Succeed:

• Networking: Build relationships with property investors, developers, agents, and other sourcers.
• Market Knowledge: Understand property markets, trends, and what makes a deal profitable.
• Negotiation Skills: Help secure the best prices and terms for your investors.
• Due Diligence: Ensure deals are viable and meet legal and financial requirements.

In short, being a deal sourcer can be a lucrative business with the right connections, skills, and market knowledge. It’s a great way to earn money in real estate without owning properties yourself.