Property deal sourcing is the process of finding and securing investment properties for buyers. Whether you're looking to invest in a new location or don't have the time or experience to find the best deals, a sourcing agent can help you achieve your investment goals.
For over 14 years, I have focused on property sourcing and investing. I know the UK market inside out, and now I spend most of my time helping property investors find great buy-to-let opportunities through my property deal sourcing company.
Ready to discover how property deal sourcing can help you build a profitable portfolio?
Let’s dive in.
Table of Contents
Key Takeaways
Property deal sourcers locate properties for buyers. They aim to offer high returns and save time for investors.
The process includes finding deals, evaluation, purchase management, refurbishment, and ongoing support.
Make sure you verify the sourcer's compliance, skills, and reputation; ensure clear contracts.
Costs range from £3,000 to £11,000 per deal (excl. VAT), varying with the service level.
Unlike estate agents, sourcers work for buyers to find them profitable property investment opportunities.
Is a Deal Sourcer an Estate Agent?
Deal sourcers and estate agents play two different roles in property transactions:
Estate Agents
Work for sellers
List and market any property
Aim to achieve the highest sale price, which means they focus on maximising profits for the seller
Property Deal Sourcers
Work for buyers/investors i.e. those looking for profitable opportunities
Focus on finding the best property deals and most profitable investment opportunities including restoration houses for sale.
Seek out undervalued or high-potential properties.
As a deal sourcer in Liverpool, I work closely with local estate agents. Although we have great relationships with them, it is important to remember that we do play different roles, mainly due to our clients having different objectives.
Conclusion: Is a Deal Sourcer an Estate Agent?
A property deal sourcer is different to an estate agent. Estate agents help sellers market and sell properties whereas a sourcer works for the buyer to find them the best property investments. They have different goals and clients in the property market. Property deal sourcing has a unique role in the industry.
Key Skills of a Successful Property Sourcer
When looking for a property deal sourcer, seek these important skills:
Strong negotiation: This helps them get good deals for clients.
Research and analytics: They need to be great at analysing and evaluating market opportunities, including restoration houses for sale, knowing how to calculate the return on investment and the property's market value. They must understand current trends and future potential.
Hands-on experience: expertise in property investing and property deal sourcing UK is vital. This know-how helps them spot good deals quickly and assess properties effectively.
Time management: Efficient work ensures no missed chances.
Clear communication: They must explain complex ideas simply to clients.
Solid network: A strong network, including a team of experts, helps manage all parts of investments.
I have found that it can take many years to build world-class skills in some of these areas. For example, I have invested heavily into my property and business education and even after over 14 years in the industry I am still learning!
Conclusion: To reach your investment goals, work with a top property deal-sourcing company that has plenty of experience. They should have excellent skills in negotiation, research, and property knowledge. Good time management, communication, and networking are also key. These abilities allow them to find the best deals for you.
Benefits of Working with a Property Sourcing Company
Property sourcing has become a secret weapon for investors. I think this is because more and more people are realising that time is the real currency - not money. The more we can outsource to professionals, the more memories we can make with our family and friends.
Here's how a property deal sourcer UK can help you:
Achieve Higher Returns: Outperform traditional bank savings by investing in high-yielding properties. The average rental yield in the UK is 5.6% (Zoopla), but you can achieve above 7% when working with a knowledgeable property sourcer. Learn how to invest 100K effectively in the property market.
Increase Income: Boost your lifestyle by acquiring cash-flowing properties. Buy to let Liverpool properties bring in an average of £9,550 rental income per year (Total Property group sourcing data, 2023/2024).
Build Your Pension: Grow a profitable UK property portfolio that holds equity and provides passive income to secure your financial future.
Protect Against Inflation: Safeguard your wealth by investing in tangible assets that increase in value and outpace inflation.
The above is exactly what my property sourcing company has done for my clients over and over again.
Recent trends show investors increasingly value professional advice and expert guidance; 42% of investors cite expert guidance as crucial compared to 35% in 2009 (Cerulli, 2023).
If you're interested in property deal sourcing and making smart investment moves, learn how to invest 100K and discover the best strategies for maximising your capital.
Conclusion: Working with a property sourcing company empowers investors to build wealth through higher yields and expert market insights. A professional sourcer helps you protect against inflation while creating lasting financial security through strategic property investments.
How Property Deal Sourcing Works
Every property deals sourcing company will offer a slightly difference service. My deal sourcing company offers a fully hands-free service for our investors. This is how we do it:
Investment Discovery Call: We will explore where you are currently at in your investment journey, understand your goals and specific requirements and share market insights. Whether you're looking for the best way to invest 50K in the UK or have a larger budget, we'll discuss what you want to achieve with your property investments.
Getting Investment-Ready: We'll connect you with trusted professionals like mortgage brokers and accountants. This prepares us to act quickly when opportunities.
Finding the Right Property: We use AI, online searches including Rightmove, and our network to source great deals as quickly as possible. Our team does thorough checks and handles viewings. We negotiate prices and provide detailed brochures for each opportunity, helping you reach an informed decision.
Managing the Purchase: We take full care of the buying process. We make sure all checks and paperwork are done before you buy.
Refurbishment (if needed): The property may need work and if it does, we manage it all. We keep you updated on progress and ensure the property meets standards.
Renting Out the Property: We oversee the letting process through local trusted agents. We ensure the property is compliant with all regulations and we help find quality tenants.
After your property is rented out, we are always on the end of the phone in case you need advice or just want a chat! We have been investing since 2010 and we are not going anywhere.
Conclusion: Property deal sourcing streamlines property investment. It helps investors find and buy profitable properties quickly. A hands-free process like the one mentioned above saves investors lots of time and effort.
How Do Investors Find a Good Property Deal Sourcer?
Finding the right property sourcing UK expert can be key to successful investing.
Referrals
Referrals from trusted property investors or professionals are invaluable. Word-of-mouth recommendations can lead you to reputable deal sourcers.
Social Media
Search social media platforms like Facebook, LinkedIn, Instagram, and X to find deal sourcers and connect with them directly.
Property Deal Sourcing Reviews
Check Trustpilot and Google Maps for property deal sourcing reviews from past clients. These reviews can help you make informed decisions about which property specialist to choose.
We're proud to be Liverpool's top-rated property sourcing company. Don't just take our word for it - check out our property sourcing reviews.
Networking
Attending local property investment meetups is a good way to connect with property deal finders or join one of our Liverpool Investment Tours. You might also attend property deal sourcing courses UK as there will be lots of sourcers there!
Conclusion on Finding a Good Property Deal Sourcer
To find a great property deal specialist, use your network for recommendations. Check social media for reputable sourcers and read reviews from past clients. Always ask for referrals from people you trust.
How Much Does a Sourcing Agent Cost?
Property sourcing agent costs range from £3,000 to £11,000 per deal (excl. VAT). Their costs vary depending on skill level, investment plan, property location, and services provided.
Pricing Models for UK Buy-to-Let Properties
For buy-to-let terraced properties in the UK, typical pricing is as follows:
Sourced Only Service
Cost: Around £3,000 excl VAT per deal
Includes: Deal finding only
The investor handles the rest.
Fully Hands-Free Service
Cost Range: £4,000 to £11,000 excl VAT per deal
Includes: Helping you get 'investment ready', finding the right deal, and handling legal processes. Also, overseeing refurbishment, managing lettings, and after-sale support etc
Minimal investor involvement
When Do You Pay?
Property sourcers usually offer one of three payment options:
Payment on Completion
Full Payment Upfront
Partial Payment Upfront
Experienced property deal finders often ask for a full or partial payment upfront. This enables them to offer a personalised service. However, newer deal specialists might work on a pay-when-done basis. Their clients aren't committed, so they must juggle multiple customers. This can affect the quality of support and assistance that they provide.
Choosing the Right Option for You
Choose your sourcing expert wisely. Think about your budget, how involved you want to be, and your comfort with risk. I've found that if you need a hands-free service you'll have to be willing to pay some money upfront.
Conclusion on How Much Sourcing Agents Cost
UK buy-to-let terraced properties usually cost £3,000 to £11,000 (excl VAT) to source. Don't just focus on price. Consider the agent's experience, the support offered, and how much you want to be involved.
Make Sure Your Investment Is Protected
Property Deal Packaging Contract
As an investor, it's crucial to ensure you're protected when working with a property deal sourcer. Start by reviewing their contract, which means it should be clear and outline your responsibilities and those of the sourcer.
A well-drafted property deal sourcing contract is essential to protect your interests. This agreement should cover key aspects like fees, services provided, and timelines.
Additionally, ensure they have property deal sourcing compliance with industry regulations:
Registration with the ICO Data Protection Officer
Membership in the Property Redress Scheme
Conclusion on Protecting Your Investment
To stay safe as an investor, make sure your property deal sourcing agent is compliant. Check that all agreements are clear and detailed. This helps protect your interests and keeps your money safe.
Property Deal Sourcing Examples: Case Studies
At Total Property Group, we've helped over 60 investors reach their financial goals. Here's how we helped Mary, invest her £105,000 in property:
Property 1: 3 Bed Mid, Terrace House in Liverpool L30
Purchase Price: £110,000
Cash Needed: £50,945*
Annual Rental Income: £9,600
Gross Yield: 7.9%
Predicted Value Increase Over 5 years: £33,000**
Property 2: 3 Bed, Mid Terrace House in Liverpool L20
Purchase Price: £112,000
Cash Needed: £49,345*
Annual Rental Income: £9,000
Gross Yield: 7.5%
Predicted Value Increase Over 5 years: £34,000**
Combined Investment
Cash Needed: £100,290*
Annual Rental Income: £18,600
Average Gross Yield: 7.7%
Predicted Value Increase Over 5 years: £67,000**
*This is an 'all in' cash figure inclusive of mortgage deposit, buying fees, refurbishment, etc
**Based on a 5% conservative average growth rate
The outcome has delighted Mary. Our team handled the entire process, which means we took care of everything - from finding suitable properties to renovating and overseeing the lettings. As a result, Mary now enjoys a steady stream of passive income, all while their portfolio appreciates and continues to make money each month.
Conclusion Deal Sourcing Case Studies
These property deal-sourcing examples show how smart investments in Liverpool can pay off. The average gross yield is 7.7%, which is great compared to the UK average. Liverpool also has room for the properties to go up in value over time.
Property Deal Sourcing - Wrapping Things Up
Property deal sourcing transforms the way investors build their portfolios in today's market. I've seen firsthand how it helps busy professionals access profitable deals without the usual hassle. Smart investors choose sourcers to save time and tap into the best investment opportunities.
Think of it as having a property expert in your corner. They handle everything from finding deals to managing refurbs. This means you spend more time with family and friends while they focus on helping you grow your wealth.
A good sourcer brings market knowledge, negotiation skills, and industry connections with them.
Remember, success in property comes down to making informed choices. Whether you're just starting or expanding your portfolio, property deal sourcing offers a proven path to reaching your investment goals.
Ready to take the next step?
Take the Next Step with a Property Sourcing Company That Cares
If you're ready to turn your property investment dreams into reality, now is the time to act. At Total Property Group, we understand the challenges you face because we have been there too! That's why we're here to guide you every step of the way.
Book your free Investment Discovery Call today, and let us help you identify the best opportunities and do all the work for you. This call is more than just a conversation—it's the start of your journey toward a profitable and secure property portfolio.
FAQ on Property Deal Sourcing
What is deal sourcing property UK and how does it benefit investors who want to learn about real estate investing?
Property deal sourcing helps investors grow their portfolios. It saves time and offers access to hidden gems. I've seen how local expertise can make a real difference. If you're new to property investing, it's a great way to learn the ropes. You'll gain insights and benefit from expert guidance as you start your real estate journey. Working with deal finders who know the local market inside out can teach you valuable lessons about successful property investing.
Are off-market properties better than on-market properties?
Not necessarily. When buying property, a good deal is a good deal, regardless of its source. Deal sourcers must know how to identify potential investment opportunities whether they are on or off-market. The key is to identify those that meet your criteria and offer good ROI.
What are the legal and regulatory requirements for property deal packaging in the UK?
An experienced property deal sourcer in the UK must register with HMRC for Anti-Money Laundering supervision, join a redress scheme, and register with the ICO. They need insurance and must comply with consumer protection laws. Depending on services, FCA authorisation may be needed. To avoid risking thousands of pounds when buying properties, make sure you're working with a compliant property specialist to achieve your investment goals.
How much do property deal sourcers make?
Fees vary based on assistance level and deal complexity. Basic sourcing might cost £3,000 per deal, while full-service packages can range from £4,000-£11,000 or more. Always get a clear breakdown of included services before engaging.
What are the risks of using property sourcers and how can I mitigate them?
Risks include overvaluation, hidden fees, and lack of transparency, including potential misrepresentation of property conditions. Mitigate these by conducting due diligence, getting agreements in writing and checking credentials. A reputable property finder will know how to help you avoid common pitfalls and achieve your investment goals.
How long does the property sourcing and deal packaging process typically take?
It can take 4-8 weeks to find and secure the best deals for an investor. Working with a skilled deal specialist is often the best way to streamline these steps The timeline may vary depending on market conditions, your specific requirements, and the sourcer's network of property contacts.
Can deal sourcers assist with financing and mortgages?
While deal finders aren't direct lenders, many can introduce you to trusted financial experts, offer guidance on financing options for new property acquisitions, and assist with lender documentation for investors looking to make money and secure favourable terms. Ensure any financial advice comes from qualified advisors.
How to get into property deal sourcing?
Deal packaging is the strategy to help you find lucrative opportunities. As a beginner in the property industry, start your journey by understanding the local property market. A property deal sourcer today must be able to negotiate favourable terms, find properties that meet investor goals, and utilise property professionals to package deals effectively.
How do I evaluate if suggested properties are good investments and negotiate better deals?
Review the sourcer's analysis critically, conduct independent research, and get separate valuations if necessary. A reliable property sourcer will provide detailed analysis, but you should also conduct independent research and get separate valuations if necessary. To negotiate better deals, use research on comparable property prices, understand the seller's motivation, and be prepared to walk away if the numbers don't work.
What should be included in a contract with a property sourcer to ensure the truth about deal sourcing is reflected?
A comprehensive contract with your chosen deal sourcer should define services, fees, timelines, exclusivity terms, confidentiality clauses, dispute resolution procedures, and guarantees. Having this information is the best way to ensure transparency. It should outline the sourcer's responsibilities and your rights to ensure transparency. Consider having a solicitor review the contract before signing if you want extra assurance.
About the Author
Pat Harper
Pat Harper is a respected buy-to-let property investment writer and market analyst based in Liverpool. As founder of Total Property Group and a regular industry commentator, he brings real-world expertise and data-driven insights to property investors.
Disclaimer
This article is for informational purposes only and does not constitute professional advice. The content is based on our opinions and experiences, but we make no representations or warranties regarding its accuracy or completeness. Readers should not act upon this information without seeking advice from qualified professionals. Investments carry risks, and past performance does not guarantee future results. The author and publisher are not liable for any losses or damages resulting from the use of this information. Always conduct your own research before making any decisions.
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