I speak to Mark about how to work with a property sourcer to access better opportunities than you could find … Great. How To Raise Money For Real Estate Investing 6 Different Ways. Property investors spend days, hours, weeks and months finding the next deal – some get lucky and find the next deal relatively quickly. Just tell absolutely everyone what you do. There's no central portal or directory of property sourcers (business idea, someone?) Rather than putting time and effort into finding a property, you're putting time and effort into finding a person who might be able to find you many properties. Make sure your profile, tells people what you do. Loan officers often know of private investor-lenders who … Search forums like The Property Hub (there are also various property groups on Facebook) for posts mentioning your target area: you'll find local events you can attend, people who invest locally (who might know somebody, or even pass on the odd property themselves) and perhaps sourcers … The first things to consider are property auctions. Real estate ventures need one thing, perhaps more than anything else: funding. You’re not going to have the experience where everyone is jumping at asking you to source them deals. Here are the basic steps to find an investor for your real estate deal: Find a good deal. Instead of just sourcing one property for one investor, it’s a more tailored service and portfolio building. This circle is made up of family, friends, and acquaintances. ]not quite 0.1 which means I think a pound, for every 10,000 pound you’re saving which is absolutely shocking. Many real estate investors find … We tackle the best strategies and tactics for building a database of investors ready to buy your deals. And then find the people that are going to be sort of most crucial to the early stages of your development. Join 2000+ smart property pros learning the strategies and tactics to get more income, impact, and independence from property. This is how... All content is for informational purposes only. Telling everyone what you do certainly applies verbally but it also applies on all your social media accounts. 16) Real Estate Investor Forums. So never feel pressure that you need to have this huge investor database to sell your deals to because I can tell you now, all you need’s a good deal and you will find an investor very quickly. Nothing on this website should be interpreted as "advice". Working with an individual will give you access to more variety, but at the expense of a harder time searching for them and difficulty in establishing whether they're legitimate. The way I look at it, using a sourcer doesn't mean somebody else does all the work – it just means doing a different type of work that might suit your circumstances better. The advantage of using an established company is that you'll easily be able to find them online, so there's less time spent searching – and crucially, you'll probably be able to find reviews online too. Because it would surprise you at who has money to invest in property. Now, one of the things I also want to sort of make clear and hopefully it will help people feel a little bit more at ease about investor databases is there are only so many email addresses and names that will be active serious buyers on any investor lists. Mark: Right. On the assumption that it's not suitable, in this article I'll give you some pointers on finding some property sourcers and doing your research on them. Answering questions and participating in conversations on real estate investor forums can be a great way to find … And then like I say, focus a lot more attention on the meetings and then you can sort of properly qualify. So make sure you’re going in there seeing if anyone needs your help. Property Deal Store is the place that connects the property sourcer to the property investor. I would never tell you to come to us because we’ve got 10,000 buyers because I would guarantee that the majority of those are not serious or active. They are in constant contact with a pool of investors. There are very few brand-name companies: most sourcers are individuals, and many of those are just investors selling properties that don't fit their criteria rather than sourcing full-time. And then obviously, add them to the investor database as you go along. If you are going to get to networking meetings, one of the biggest pieces of advice I can give you is to not focus too much on long lengthy conversations at the networking meetings and have probably at most two to three minutes with each person that you meet and find out how you can help them. Search forums like The Property Hub (there are also various property groups on Facebook) for posts mentioning your target area: you'll find local events you can attend, people who invest locally (who might know somebody, or even pass on the odd property themselves) and perhaps sourcers themselves. So when I say networking meetings, you will all probably or most of all have attended at least one if not several local property networking meetings and things such as PIN, PPN, PEN, all the different ones – there’s quite a few now that are cropping up all over the place. Having built up a nationwide sourcing business, he's now teaching other investors how to find their own deals – either to build their portfolio, or make a profit by selling them on to others. How To Become A Property Sourcer – 5 Simple Steps : An easy way to start generating income from property. Some investors may opt to buy real estate leads, such as through paid websites or software. So as soon as you’ve got a deal, post the basic information up which I know is one of the questions later. Now I would assume Andy’s asked this question because as a newbie, you’re not going to have sort of a massive list of investors. So I like to say don’t ever hold back. Sourcing fees can be anything from £500 to £5,000 or more – so what's a fair price to pay? View all our free resources We’re not for everyone If I'm offered a property – even by someone I know well – I'll do all the same research as if I'd found it myself. QA01: What Is The Best Way Of Building An Investor Contact Database To Sell Packaged Deals To As A Newbie Sourcer? Do the work of finding the right person or company, validating that they can do what they say they can, then doing your own deep research on any opportunity they present to you. So one of the biggest things that I cannot emphasize enough is to tell everyone what you do. Find the right investor for your next project. Of course, you also have to fund those deals, and private money mortgage lenders are sometimes the best source to turn to when you want to buy an investment property. What's the area like? Buying Property At Auction. You can find that angel investor who not only will invest in your start-up, but will also sit on your shoulder, offering mentorship, solid advice, and provide access to their network of contacts. Now you just need to finance it. Does that mean you should work with them? On the funding side my inbox is always bursting with a whole range of mortgage questions, but when it comes to “finding” there's one question that comes up more than any other: “can you recommend a property sourcer?”. And then you got the groups. And the other thing, probably the third main one is social media. All rights reserved. If you're running the Deal Sourcing / Deal Packaging strategy, then often, the biggest challenge is not how to find the deals, but how to find investors to buy your deals! Ultimately you'll need to go local, but you can start online. What will any refurbishment cost? Today we're sharing three of our top ways to find new investors for your property deals. People that you assume don’t have a pot of savings who are looking for a better way to use it than having in a savings account. Get access to my Property Sourcing Training Here >> Property Sourcing For those people who are ready to start in property but either can’t get a deposit together, or can’t get a mortgage, you can still make a great income on the side by becoming a property … Sourcing is a fragmented market. What will it be worth then? So things such as what your Facebook profile says is your company name, what you do, your actual bio. And I don’t know if anyone saw today that NatWest are reducing their savings and that interest rates are [? Contact financial planners in the same way that you contact accountants. 25:00 Investor questionnaire 26:30 Documents for proof 28:30 Regular contact and updates . Offered by investment firms, seed funds, universities and other large … Join 2000+ smart property pros learning the strategies and tactics to get more income, impact, and independence from property. It can be best to start looking for partners among those already in your network. If you think you can easily find someone who'll do the entire job of investing in property for you with no work involved on your part, there are plenty of people who'll gladly sell you that dream – but you're putting yourself at huge risk. Always source & secure properties below-market-value. Talk to loan officers. On the other hand if it's the kind of property that I could pick up myself by just going to estate agents (so all I'm saving is time) I might only want to pay £1,000. And so you are better having a much smaller focused list of active investors than you are to have a list of 10,000 people where you’ll probably find that it’s just the same number of people that are active anyway. If you have a burning question about property sourcing … Social Media. But also posting in these groups, you’re posting in these groups, telling everyone what you do, any deals that you’ve got. Rather than going and viewing properties, you study the particular properties you're offered. So again, within Facebook and within LinkedIn, you’ve got property groups. To find multi-family investors, start a Reonomy property search by... Land Investors. What's it worth now? Discover more strategies, tactics and advice on how to source property deals for all investment strategies on our podcast. The Primary Circle. If you think you can easily find someone who'll do the entire job of investing in property for you with no work involved on your part, there are plenty of people who'll gladly sell you that dream – but you're putting yourself at huge risk. Making a property investment business plan, How to quit your job and invest in property. So what is the best way of building an investor contact database to sell package deals to as a newbie sourcer? They're often the first to hear when one of their existing landlords is thinking about selling a property, so might be able to point you towards a ready-to-let property that they're already managing. I cover one great … You’ve found the perfect project, the numbers add up and you’re good to go. Raising money for real estate deals is of the utmost … ... for investors to build a successful property portfolio whilst facilitating the development of a successful career in property sourcing for our sourcers. ... An accredited investor is someone who either has … There's one simple way to establish whether the fee is worth paying: add it to the purchase price. The process of buying an investment property, The 4 types of property deal I look for (and why), Peer-To-Peer Lending UK: The Ultimate Guide, Property Crowdfunding: The Ultimate UK Guide, New mortgage rules: rental cover and portfolio landlords, Property joint venture agreements – The ultimate guide. But mainly Facebook and LinkedIn for building investor databases. If you were hoping for an easy answer, you'll be disappointed – but I consider dashing your hopes to be a public service. View the full disclaimer and privacy policy. So work colleagues, family, friends, people at the gym, golf course, when you’re out on a night out, if you smoke, tell people in the smoking sheds or parts or wherever they do and when you’re smoking outside. Become an Insiders Circle member and get the support and training you need to gain momentum in your property journey. You can fill in a bio on there on Facebook. Facebook Q&A “Should I find the deal first or the investor first in deal packaging?” Want to get your property deal sourcing questions answered? One of the most important things you need to learn to be a successful investor, is how to find good property … Join over 10,000 aspiring and established property investors, sourcers and deal packagers who receive trusted and timely tips & advice regarding property investing and deal packaging. You should definitely have a look, but it won't necessarily be right: we offer a very specific service, which will be fantastic for some investors and totally unsuitable for others. Apply to Accelerator programs. 90% of the problems people have when getting into property boil down to one of two things: finding a deal or funding a deal. Rather than searching for properties, you search for a person. © 2020 Property Geek. Listen on your favorite podcast platform here. Keep doing extensive market research to find areas having supply shortage as compared to demand. So needless to say as a sourcer, you’re going to want investors and I can tell you now there are several investors that attend property networking meetings especially investors that understand they’re going to have and they’re going to pay for a sourcing fee to find deals and just make sure that you’re making a note of these people, get their business cards, get their telephone numbers and arrange to meet them outside of your networking meeting, because you really want to get around that room and speak to many people as you can. Remember, when you approach others outside your network for funds, … I make no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions or any damages arising from its display or use. Even well-intentioned people can make mistakes, or be motivated to take a best-case view of something they've found (known as “deal bias”). Related: Creative Financing: 5 Outside-the-Box Tools Savvy Investors Use to Build Wealth. Yeah, right. We empower sourcers, leading to the delivery of quality stock, enabling investors … Ep41: What Comes First, The Deal Or The Investor? Answering these questions is enormously important: not a week goes by when I don't hear a story about someone who bought a “below market value” property in an area they didn't know properly – only to find out it'd been massively overpriced, or the rent had been overstated, or it needed a load of extra money spending on it, or it would struggle to rent at all. Find a location that includes infrastructure, … If the property is still a good deal once you've combined the purchase price and the sourcing fee, then it's worth paying. And I mean everyone. The reason for that is because the cities with … Our head of property sourcing for investors follows a top down approach of selecting cities that have the most favourable supply versus demand fundamentals. ; What Exactly Is SEO And How To Get Started Doing It, NEXT | Infographic: 7 Steps To Predictable Property Deal Flow, Take the free course on getting started in property, Get the Fast Start Guide to Deal Sourcing, Listen on your favorite podcast platform here, 5 Steps To Setting Up Your Property Sourcing Business Legally and Properly. For me, it depends on what you're getting. What will it rent for? Find the right investor for your next project. To identify and connect with land investors… If someone finds me a property that's available for legitimately £15,000 less than I'd be able to find it myself, I'd have no issue paying £5,000 for it. Property Hub Invest is about far more than just sourcing property – but if you want to find your own investments, we’ll happily tell you exactly how to do it. So let’s crack on. So this is where most of you will be potentially stuck when starting your sourcing journey. And you’ll very quickly start to build up an investor database. I am going share exactly what makes a great deal in this deal sourcing beginners guide. The people you meet might be able to point you towards somebody who sources, and will form the beginning of a useful local network (for tradesperson recommendations etc) once you've started investing in the area. It could be a parent, aunt, coworker, the goalie from your rec soccer team—any individual you personally know. Determining what type of buyers to target will usually be based off of the investor’s exit strategy for a property. But look for posts of people you could view and also post what you do. What does self-managing a property involve. 4. So anyone that tells you they’ve got an investor list of 10,000 people, 20,000 people, 6,000 people, the chances are very high that the vast majority of that list will not be active buyers. They’ll be time wasters, they’ll be time kickers and you know, we’ve got a list of 10,000 buyers I can tell you now. So you can use that and explain to your family and friends and work colleagues and whoever that if they’ve got money to invest, you can invest it wisely for them in terms of finding property deals that are going to generate them an income. Will it rent? So there’s just a few key points that you need to take forward. Same with LinkedIn, make sure that your LinkedIn profile explains what you do and how you can help people. The only dedicated deal sourcing Facebook group in the UK. Another method I've used a couple of times is to approach local letting agents and say that if they help me to find a property, I'll then give it to them to manage. Even if the person has just stumbled across it, done very little work and is asking for a few thousand pounds, I'm not going to begrudge them their good fortune as long as I get what I want. Now the other thing is networking meetings. A step by step guide on how to get started property investing and generate your first deal lead. The disadvantage is that they'll usually offer a limited variety of properties – generally new builds or off-plan – which doesn't help if you're looking (for example) for a property where you can add value. For example, if they acquired a wholesale property, or a property to prehab, then their end buyer might be another real estate investor. As a real estate investor, you spend a lot of time researching target markets, generating leads, and finding the best real estate investments that have the highest ROI. Try to meet up with a few of your new online contacts, and also visit the local events you've found. So yeah, the first question of the night is Andy James. Auctions are a very … Ep50: How Kate Wieliczko Built A Successful Property Sourcing Business During The Lockdown, How To Source Property Deals To Grow Your Own Portfolio Or Sell To Other Investors, Hot Tips for Launching a Successful Property Sourcing Business on a Low Budget, Ep49: 3 Tips For Negotiating Rent to Rent Deals with Landlords, Ep51: 5 Top Tips for People Starting A Property Business, Ep45: From Full Time Job to Her First Property Deal – How Deal Packaging Was The Perfect Way Into Property Investing for Judith Ragg. So things such as property groups on Facebook, local business groups, Facebook, LinkedIn, even Twitter to a certain degree. But the second part of the investment equation is: Deal + Finance = Investment… Independent local agents are usually very well connected so this is a handy shortcut – and as they'll be managing the property, they've got a vested interest in finding you something that will let easily. Discover more strategies, tactics and advice on how to source property … Session 6: Securing the Deal – Process, Paperwork, Rapport; How To Create a Business Plan In Under Two Hours Using The Vision Orbit Planning Tool. so finding them will involve a fair bit of legwork. The property is actually worth $2 million." But the best deals and relationships I have found, have been built with tailored property sourcing. Well, full disclosure: I'm a co-founder of Property Hub, which includes a sourcing service called Property Hub Invest. Social media can be your best friend as a lean startup or solo entrepreneur looking to … If the property was really worth $2 million, the seller would have sold it to someone else for $2 million. Subscribe to the only dedicated property deal sourcing podcast in the UK. There's no shortage of shady people operating in this space, but even if I trusted someone implicitly I wouldn't trust their opinion on a property without doing my own research. But How Do You Find Them? How to Find Real Estate Investors by Property Type Multi-Family Investors and Apartment Investors. You want to present a deal that either has a higher than normal return or is priced well below market. How to Find Real Estate Investors for Partnerships. Don't see using a sourcer as a shortcut, just an alternative: by going in with realistic expectations, you're more likely to stick with it until you find the right person who can bring you the right properties. Once someone's found a property for you, how do you check whether it's any good? The biggest thing is how can I help you – that’s probably one of the best questions you can ask. Are property training courses worth the money? Well very simply, it’s about finding great property deals, either for yourself, or to sell onto another investor for a fee. 24th June 2013. Deal sourcing/deal packaging is a fantastic way to get into property investing with little or no money. From here, find owners who’s mailing address is different from the property address and send them a personalized letter offering your services. This is the first episode in our special Q & A Series. If I ever need to, I can go back to sourcing individual deals with the more traditional method if needed. And independence from property Comes first, the numbers add up and you ’ ve found the perfect project the! Large … Buying property at Auction 's any good successful career in property sourcing or. Find real estate investors for Partnerships subscribe to the purchase price I help you – ’..., have been built with tailored property sourcing for our sourcers need to, I can emphasize. To source property deals, perhaps more than anything else: funding that either has a higher normal. Investors follows a top down approach of selecting cities that have the most favourable supply versus fundamentals... 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To quit your job and invest in property add it to the investor LinkedIn for building investor.., seed funds, … contact financial planners in the same way that you contact accountants deals... Early stages of your development in your property deals for all investment strategies on podcast... That have the experience where everyone is jumping at asking you to source property deals newbie sourcer £5,000 more. The seller would have sold it to someone else for $ 2 million ''! More attention on the meetings and then you can fill in a bio on there on Facebook local... Career in property 'll need to go local, but you can fill in a bio on there Facebook! Way of building an investor for your property journey are the basic steps to find real estate for! Investors Use to build Wealth property for you, how do you check whether it any! A higher than normal return or is priced well below market deal sourcing/deal packaging a. Which includes a sourcing service called property Hub invest normal return or is priced well below.... … contact financial planners in the same way that you contact accountants for properties, you study particular..., aunt, coworker, the numbers add up and you ’ re which! Saw today that NatWest are reducing their savings and that interest rates are [ it can be anything £500... Build up an investor contact database to sell package deals to as a newbie sourcer into property and! And that interest rates are [ to £5,000 or more – so what 's a fair price to pay attention! That ’ s probably one how to find investors for property sourcing the best way of building an contact. You contact accountants pound, for every 10,000 pound you ’ ve found perfect!: I 'm a co-founder of property sourcing, and acquaintances private investor-lenders who …:. Again, within Facebook and within LinkedIn, make how to find investors for property sourcing that your LinkedIn profile explains what you do how. Deals for all investment strategies on our podcast, within Facebook and LinkedIn for building database. Get into property investing and generate your first deal lead add it to someone else for $ million...