How to deal source for beginners (and get started in property)
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- čas přidán 11. 07. 2024
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Today's video is How to deal source for beginners. A common question I have been asked is how to deal source. It seems rent to rent along with deal sourcing are common property strategies that many people are eager to not only learn about but also try.
For that reason, these videos would be incomplete without telling you about what it takes to become a deal source, how to deal source and also how to do it ethically and legally. You want to be a compliant deal sourcer if this is your chosen property strategy.
Useful timestamps:
00:00 Introduction
01:40 Deal sourcing chapters
02:08 What is deal sourcing?
03:25 How to set up as a deal sourcer
03:50 Compliance costs explained
04:58 Setting up your deal sourcing business
05:45 How to start sourcing deals
06:40 5 Key Deal Sourcing Attributes you need
10:17 Deal sourcing example
Let me know if you have any questions down below.
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Got my curiosity juices flow. Great video except for the fact you support man u haha
Lol anything to get the engagement going in comments! Worst case I’ll do a second video with them in :)
I need these haha
Haha need more comments - I’m getting a few dms on socials but we gotta keep it here
It’s easier surely?
Great video once again. Loads of useful content. Being a deal Sourcer myself - I can say first hand how much time it takes. Brilliant advice you’ve given
Cheers my bro! Yeah, it takes a lot of relationships, knowing the right deals and ensuring the end consumer is getting what their after - which i KNOW you do well. Thanks for watching
Great video man. So professional deserve more subscribers
Thanks buddy, really appreciate you watching and the kind comments 🙏🏽
Amazing video 🥰 - really useful breakdown
❤️
Loving the videos Mr A 👏👏👏👏
Thank you Tai ☺️🙏🏽
Thank you for the great free content. Can you elaborate on what the risk assessment is for when setting up the business?
Great video
❤️
Great video man, i like the structure, the humour and overall the info👏🏻👏🏻👏🏻hey, where abouts are you based? Would you be interested in an interview? To tell your story and hash out more questions about property?
Hey mate great video. Can you please make a video about a website on what to have for your deal sourcing business?
Excellent video, after doing all the preparation explained here, how long should it take to get your first deal?
I like this content
Thank you mate, appreciate you watching 👌🏽
Great video as always mate. In your opinion what are some of the pitfalls with deal sourcing and how often would a deal sourcer have to take a claim on their Public Liability insurance?
Thanks Matt. Pitfalls, deals falling out of bed, vendors changing their minds, sellers getting cold feet etc. So a lot of the time you have to be trying to mitigate these problems the best way, by ensuring your time is at least covered from an expense perspective. I would also encourage people to not compete with estate agents, instead work with them!!
As for the claims side, we have yet to utilise it - so full transparency I can't answer sorry.
Just so you know... I've found myself down a CZcams rabbit hole watching your videos past my bedtime 😂
😂😂 I’m very grateful honestly. Hoping they’re helping out too 🙏🏽🙏🏽
Thank you for the video.
If there is a property that is available for r2r, what sort of questions do you ask the estate agents or property owners and how would someone like me (co deal sourcer-ish) close the deal?
Great video man thank you, just wanted to as if there are any contracts needed and if so which ones?
Their will be contracts you’d need to utilise with clients when getting the deals over the line yes. For example, NDA if you wish and to reserve the fees if you want these to hold the property.
Great video mate. When do deal sourcers get paid and how?
So it really depends on their model. There can be an upfront payment to secure the property whereby if the buyer then pulls out, it would likely be non-refundable, with the remaining amount paid on completion. Or some like to act specifically for people and take payment on a "i'll now go searching for you basis". Personally I think, it should be done once the property is completed, with maybe a small % paid for finding and securing and getting things ticking as it would be a kick in the teeth if the vendor dropped out last minute. But it would also be unfair to charge the buyer the whole amount if this happened too. Hope that helps.
this was really helpful thank you! could you do an extreme in depth video about the step by step process from viewing a property, how to speak to the owner, estate agent and investors, which contracts to use and where, and anything else I may not know of? I'm starting my business this year and want to know EVERY detail from start to finish, maybe a good idea for a series? :)
Hey Tia, thanks so much for watching this. I can definitely do videos on the above, its always useful to know where people need assistance or help so ill script and record some of these for you and hopefully others to jump into and then as always any questions please let me know.
Hope is to have enough content here so people dont spend £££ on dumb courses and can just learn it and save their cash for actual deals.
@@TheAnxiousInvestor that's amazing thank you! love your content and that you're not selling anything! detail about the contracts would be the most helpful :)
Will try my best to share it all Tia no problem 😌
@@TheAnxiousInvestor yhyh that would be a sick video im tryna learn this bro.
@@TheAnxiousInvestor I would love these videos as well! Wanted to get into this for months but just don't feel confident in my knowledge. As a single dad I also don't have thousands to throw at a course 😅
Hey man just starting out on my journey should I be looking for an investor first or building my brand ect
Great video thank you! How long did it take for you to secure your fist deal with an investor since the moment you got into deal packaging?
Hey, so I secured investors as soon as I told my friends and family I was investing in property, because they already new like and trusted me. But I dont deal source personally as I try to buy my own properties and hold them myself rather than give them to other investors.
Honest insight into deal sourcing. I imagine competing with estate agents will be the toughest part to this too?
Well, this is where I believe people go wrong. Why not work with estate agents? Why not utilise and leverage their stock, and bring together your time and investors to connect the pieces and work together. You could split fees, provide referrals to their lettings department. I truly believe working with people rather than making it a vs competition will give better results.
@@TheAnxiousInvestor How do you work with them? Do you have a Facebook or Whatsapp group?
Would it be a good idea if I purely focused on acquiring a Chinese investment network? As a UK sourcer?
Hey Man, phenomenal video! Helped out a ton. Getting into RE Sourcing requires quite a bit of capital, which as an international architecture student in UK i don't possess. What route would you suggest taking in order to build up just a tiny bit of capital to pay for all of those expenses, whilst getting experience in the market? I was thinking to start as a part time estate agent, but am yet not sure if thats perhaps the best route. (Im aspiring to become a RE developer in the future)
Hey mate so ideally I always recommend building up capital through whatever skillsets or means you currently have. Property isn’t cheap & but selling the dream that it is allows gurus to sell you their BS and make thousands at your expense.
There are costs associated with deal sourcing / rent to rent that many people skim over which makes it tough for people to start and then the very little cash they have they blow on mentorship and masterminds.
You don’t need to be an EA to be a developer but you can get experience just through reading and watching online and meeting people who may be open to sharing their projects etc with yourself
For the lowest barriers of entry you are looking at rent to rent and deal sourcing and then potentially assisted sales / lease options but they require a bit more know how.
Don’t rush or fall into FOMO mode, just take your time and save capital and have a clear understanding as to why you are doing what you’re doing
I have a free skillshare class on this you’re welcome to check out:
www.skillshare.com/r/user/findyourvoice
@@TheAnxiousInvestor whats is "masterminds" in a housing context? thanks.
Great video!
I am looking to get into deal sourcing, when it comes to viewing properties and doing the due diligence, would the deal sourcer pay the building surveyor as well as ensure the relevant compliance such as gas safety and EPG grade D above etc.
So you can usually get the EPC for free online via a quick Google check.
I wouldn’t pay for a surveyor to find out about gas safety, again it’s a quick question for the agent / landlord to provide this.
You would need to of course know your numbers in terms of returns & have a good indication of renovation costs should they be required.
@@TheAnxiousInvestor thanks for your response.
The surveyor was more to do with property structure, damp, roofing more of the unseen cosmetics etc.
hey the anxious investor - what are the requirements/legals i need to co source any deals with a compliant sourcer
Hello brother. Like your advice. Which platform and website we can search for a good deal ?
During this pandemic made it much difficult to connect to the people where require communication.
Your help would be much appreciated.
Thank you 🙏🏻
Hey! So Rightmove / zoopla are your best options for searching properties & obviously offline guerilla marketing which I explain in another video (czcams.com/video/kgV8eTrGQJQ/video.html) are your best options my friend
Also ICO as well? Gdpr and personal data too
Assuming you didn’t watch the video lol? I’ve mentioned all of these 😉
Is Deal Sourcing a self-employment job?
What about Co-Deal sourcing for example if you get 1500 from the Deal Sourcing partner do you have to pay tax or... you know?
Nice video ,I have a question…when deal packaging do you tell the agent the house is for an investor and your negotiating on their behalf or do you tell them it’s your own then once everything is agreed you tell them you’re pulling out and you have someone else who can take it on
Regards
You tell the agent you deal source for clients
Never lie to them, you let them know what your plan is as Mr Transcendental rightly said. Totally missed this comment, my apologies!
I spoken to a landlord who is happy for me to Airbnb or use property for Serviced Accomodation. It’s a 2 bedroom flat in Manchester needs decorating wallpaper is different on each wall and landlord said he would repair tap and panel in bathroom. Havent made offer but will go £200 - £300 low a month. He said has all electrical, gas and epc certificates. Would this be good to source to investor if i get accepted? Thanks
Hey. If you just want to sell "qualified leads" instead of packaged deals do you still need to register for all the legal stuff? Thanks and love the videos 👊
Legally yes - if someone audits or checks you could end up in trouble. Finders fees are kinda a “go around” but obviously I can’t : won’t recommend doing anything against the law here
I have however on trust taken deals of property and paid them for their “assistance” in getting it together regardless of their status as a deal sourcer / packager
Thanks for watching too 😁
How much do you sell leads for and how does an investor know its "qualified"
Hiya, I’ve been trying to educate myself on deal sourcing for a couple months now and I’ve just came across your videos hoping you can help, I was wondering after we view a house and secure a deal, where are we meant to find investors? I’m not sure where to get started and start looking, that’s the thing I’m really struggling on, thank you
Hey Megan, if you jump through my videos I do share how to raise finance and how I’ve done it.
The concepts are simple you just have to be consistent with it all. Let me know after watching those if you have more questions and I’ll try my best to help you
@@TheAnxiousInvestor Where do you find investors
coudl you do an indepth video on the 5 key attributes you mentioned in the video 06:40
Give me a week, I plan videos a week ahead usually, I’ll script and record something out. If I can fit it into a video I think will be worth sharing I’ll get it out a week Wednesday if nothing I’ll drop a full explanation in the community tab. Most likely will try and do a video for you though thanks for watching
@@TheAnxiousInvestor no problem bro also can u show us what stages to ask for sourcing fee and how to make sure you get your sourcing fee off the investor and whether contracts or legal agreements are needed when discussing sourcing fees and obtaining them?
Also, would you say deal sourcing is the right choice for a student, as I am yet to build connections, and my network is currently empty? Im supper passionate about the RE career, just need to understand if im on the right track.
Possibly, it depends on your skillset mate. Can you analyse deals okay? Can you negotiate? Are you comfortable documenting / sharing your findings to the public to bring in investors etc?
What if the estate agent or seller asks for proof of purchase?
Funnily enough I saw an ad about a week ago on how you can make £10000 just of your laptop selling deals 🤣
😂 yup! I see these daily myself too. The only people who make that cash from their laptops are people selling the courses telling you how to do it.
Glad you didn’t fall for it
How does the process work when you find a good property? Do you give the address to the investor and then ask for a fee? Surely once they have the address they can just cut you out. Do you sign an agreement with the investor before passing over the address?
Exactly what I’m thinking, how’s it going for you anyways ?
This was a great video, really honest and insightful. Could I contact you via email to ask some further questions I have ? I tried your calendly link but it doesn’t appear to work
Hey Mikayla. Thanks so much for watching. I’ve recently stopped the free calls after 12 months, as this channel has grown along with Instagram I’ve had a lot of no shows. If you message me on Instagram I will honour a slot this Friday if it suits but other than that I’ve sadly gone to consultations only - so no one can drop out and my time doesn’t get wasted.
Hope that makes sense and thank you so much for watching
@@TheAnxiousInvestor completely understandable no worries! Yes I will contact you via your Instagram. Appreciate the response :)
Can people do virtual deal sourcing. Not looking at the property physically?
Hey, I wouldn’t personally trust a virtual deal sourcer. I would want to know that they have spent the time to check the property out, unless a home report or something can back identifying no real problems - but then I’d probably want to personally go and check it myself. Interesting Q to be honest, just seems to “easy & automated” when the whole idea of becoming a deal sourcer is more than just finding a property on right move and negotiating a few £££ of it.
Hey hey, so one more question...finding people who want to invest in your deals when your starting out is hard, full stop, but right now with covid do you think it's even harder? I spoke to someone who said that networking events are good to find people to engage in your deals but these obviously don't exist...FB groups are mostly private unless you 'invest' 10million pounds in their training course....so where do you end up making connections??Forums???? 😫
Haha- I hear that. It’s tough but you probably already have people around you who aren’t sharing what they have because they don’t know what you can do.
Look at friends and family but when I say look, don’t necessarily beg or ask. Instead on your socials, or in convos let them know the stuff you do. The returns you can potentially get. The value you can potentially add to their life.
Once I started documenting my journey and finally making a profit rather than losing it, they wanted a piece of it.
Obviously socials can help and perception can work - but I’d always encourage honesty and transparency Incase you lose a real potential investor.
If you are looking to source more specifically as I’ve just realised this is on a sourcing video, IF nobody knows you they’ll potentially ask for the right legal compliance, registration numbers aml etc.
So before you even get going have that ready. Then you need to join groups on fbook (not the course selling ones) and share there and start to build a reputation. Some WhatsApp groups often have deals flying around / again though unless you have crazy ROI people may not entertain you if that’s your 1st ever post.
Get into people mind space so they feel like they know you!
Heck if you find something good enough, like a BRRR deal we’d take it off your hands, so trust that if you do get a good deal, you have the potential to get it gone. Worse case you can collab with someone and split the fee based on workload if they have an exit.
Lots of options - hopefully it makes sense and I haven’t rambled too much lol
@@TheAnxiousInvestor yeah makes sense thanks, im on it!
If someone earns higher tax bracket income, do you recommend buying through a limited company?
Hey Stephen I’d recommend personally speaking to an accountant, however a BTL on my wife’s name due to her being in higher tax bracket served us no benefit once section 24 kicked in as we was unable to offset mortgage interest and the rental income (gross) was effectively added to her salary.
I don’t want to say yes 100% as I may miss something I am unaware off as I’m not an expert in tax but we was advised to then move to LTD & for that particular one I ended up going on the mortgage after a refinance
@@TheAnxiousInvestor 👍🏽 greatly appreciated
Anytime
on average how many deals do you think you can get per month?
So I don’t do this as a “strategy” but my partner in SA was sourcing a few a month prior to covid (r2rSAs) but the lead time and turnaround is much quicker!
I’d say the best sourcers can turn a few but they are few and far between! Most sourcers if they do okay, they realise it’s tough and either buy or start selling some courses etc
I think if you can focus on service, find a patch, get good with EAs and Lettings you could build a good pipeline and then even a few (forecasted a few months ahead) could be well worth it!
In 6-12 months depending on how hard you work, bit if a ball park id say selling 2 deals a month should be comfortable! Although we are going into uncertain times too
So is one/two deal a month feasible if you have a 9-5 as well? appreciate the it would be hardwork.
That’s not impossible, if you put in the right leg work initially, understand the importance of building investor lists, the timescale from end to end, etc etc it’s feasible.
The few r2rs sourced by a partner post a year was hitting 3/4 when sourcing wasn’t really the main income stream so definitely feasible.
Just don’t under estimate the initial work mate and if you do it, best of luck 🤞🏽
@@TheAnxiousInvestor I'm thinking of focusing on my area only 50 mile radius because i know the area extremely well and can genuinley add value to investors. I'm ok with grafting for a a few months before i see a return its not an issue. I'm just confused on which types of deals to focus on as there are so many angles.
@@TheAnxiousInvestor like the video btw :) thanks for the super quick rpely
Awesome! We’ll be in touch with me too over the upcoming months as I’m always looking for deals (more so in 3-6 months time) 👌🏽
@@TheAnxiousInvestor For sure 👍😊
How do you find investors?
I have some videos on here about raising finance - it’ll explain everything I’ve ever done to raise £££
Can you do deals sourcing as a side hustle ?
Yes of course, but it’s not something that takes just a few hours & if people are honest there’s a lot of graft & hardwork that needs to be put into it
So I’d highly recommend giving it some thought and seeing how much time you have
@@TheAnxiousInvestor oh ok I see thanks for the reply one more question where do find invests when you set up your deals sourcing business ?
Friends family networking events & social media
It’s important to connect with people or put yourself out there enough so people can see your work & potentially take a deal or two of you
@@TheAnxiousInvestor thanks you so much sir for your help much appreciated 🙂
very welcome
Does registering for the Anti Money Laundering apply to Rent 2 Rent Investors too?
Only if you’re taking funds from people (via sourcing the deals) otherwise it’s not necessary for just rent to rent
@@TheAnxiousInvestor I appreciate your response. Thank you 😊
What kind of contract do you use to secure the property for your inventor?
Usually an NDA will suffice for your investor and then a contract of terms and conditions about the actual deal (payments, schedules, what could occur etc and how they would be mitigated).
@@TheAnxiousInvestor thanks for that. Is there a book you could recommend on deal packaging?
@@TheAnxiousInvestor I heard signing a purchase option agreement is best as its literally your property now they have to pay you for it
Whats been your best year - in terms of personal income?
Let’s support each other
Can't fault a trier. Every video.
Deal sourcing sounds like a headache I dont want to be having right now pmsl
haha, it is a tedious process, but for many people they enjoy it and the fruits of hard labour can be worth it
I have 10k is their any possible to do something
Most definitely mate. There’s a link below if you wna ever do a 15 min call to help
1 year later and they finally signed jayden sancho
😂👌🏽 thank god!!
don’t you also need a contracted
Need a business plan 😂😂😂
😂
And if you're REALLY poor, you can still source deals, and find a sourcer with a legitimate company to split the fees with until you get the money to become compliant.
Something I am doing a video on soon. Happy to pay whatever the fee is, providing the deals is good,
@@TheAnxiousInvestor Do you have investors who are interested in Commercial-to-Resi? If so, we should talk. I have major experience in finding such deals
I am personally interested. We have put recent offers on some, but got rejected. Drop me a message on Instagram if you have anything and if it stacks I’ll pay you
@@TheAnxiousInvestor Great, will do so now. God I love the internet...
Question (slightly bitchy slant but still a question) Whats the deal (haha) with deal sourcers creating sensational Instagram accounts containing americanised videos of them swinging gucci hand bags around their pretty average properties, with sprinklings of your standard motivational quotes running throughout their account and boomerangs of them getting out of a 4x4s. Do you need to look like a car crash at river island to get in to deal sourcing to be successful? must you where cheap suits, start taking drone videos of properties and do the odd piece to camera to get in to the industry of deal sourcing? Does it help with attracting the right investors? Are we becoming super americanised/reality tv star in our approach to this but this is what investors are looking for????
haha i love this!! Sadly Perception sells and most of these investors or gurus pride themselves on showing the world how well they are doing. After all, are you even an investor if you don't take a snap with a Lambo? Or run adverts next to the 1 building site you ever passed or own? It is a lot of smoke and mirrors sadly.
As i mentioned in my how to raise finance, and as I have always tried to document over the last 5 years more specifically, being yourself is the key IMO. I can only speak from my own experience, but I have yet to write a post asking for investment ever. Yet these multimillionaires - i should have put that in brackets - are the ones asking and seeking investments.
Really makes you think eh??
Be yourself, don't say stuff or do stuff because its cool to do so, and slowly people will gravitate towards you. Thats my 2cents i guess on it.
@@TheAnxiousInvestor yeah I share your 2cents worth...which is good as I really didnt want to have to start shopping at River Island 🙈💃🏻
😂😂 primark works pretty well for me!
Régressive property 😂😂😂😂
😂😂👀👀
How can property police as you put it come down in you? Bet it’s stupid U.K. rules
As a deal sourcer essentially you’re acting as an estate agent so that why the governance exists. You want to have yourself insured Incase something goes wrong - or someone reports you for not having the correct insurances / compliance checks done.
I’ve not personally heard of anyone being audited but random audits into how you work with clients, manage their money & run the side of sourcing can be done. Chances of it happening may be slim but I’d always advise people to do everything the right way.
Hopefully that’s what you was asking? It’s an old video of mine so trying to remember why I’d say those exact words
Not one so called expert 😂 been able to answer one stupid ass question 😤....is there way to deal source and create a joint venture residual income short or long term???
WHY'S THAT SO HARD TO ANSWER??? 🤬
Why you so mad? Answers yes.
Amazing video let’s connect