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Buy to Let Property Sourcing

Being a Property Sourcer

I’ve got to admit it, Saturday’s course was ace!

Twelve people in a room with one hugely successful property sourcer who usually earns over £12,000 a month – what’s not to love?

I knew much of what we were taught, which was great – confirmation that I’m on the right track. Because I’ve already been working with investors and already have my own portfolio I knew more than some people. And no doubt less than others.

One thing that worried me a little was the lady sitting next to me, who said she had got into sourcing properties because she wanted something easy.

“I love the thought of being able to package something up, send it off and collect my money,” she told me.

Now either I have been sourcing properties for investors wrong, or she is in for a bit of a shock. The two most stressful things in life are apparently divorce and buying a house.

As a sourcer you might deal with the first, and you will almost definitely deal with the second (unless you only source rent to rent deals, for example).

I’ve bought numerous houses over the years and each purchase has had its stressful moments along the way. Why someone would think managing a house purchase – or several at a time – dealing with both the buyer AND the seller – would not each come with its stresses I have no idea.

As usual, I was crippled with self doubt and immediately assumed I’ve been doing something wrong. But I don’t think I have. I suspect this lady has been sold a dream, or allowed herself to hear a dream, and she could be in for a rude awakening.

Anyway, enough about someone else. I have more than enough to worry about concentrating on myself.

With Sarah Poynton-Ryan, super successful property sourcer

I came away with a set of actions, for sure. I also realised I needed to do a lot of thinking.

Sarah Poynton-Ryan, the sourcer who ran the course, sources properties all over the country, never visiting any of the properties. I’ve always seen myself being much more of a local property sourcer, property professional. I’m working hard to get to know my area, get established here, get known. Once our new company – not the bathroom business, the next one (!) gets going, we’ll become synonymous with our local patch. The anonymity of sourcing nationally unsettled me.

I previously spent time with a different trainer, whose approach was far more hands on, and aligned better with my comfort zone. So do I want to be him, and possibly limit myself in this small and rural area? Or do I want to think bigger, harder, nationally.

Two days on I’ve given my subconscious chance to tell me what it wants. It told me pretty clearly that I don’t, currently, want to be a hardened, big-scale sourcer, although no doubt deals from around the country will come my way as I get more established.

Dean and I want to offer a refurb service to our investor clients. We want to work with them as partners, not just passing deals on. We’ll probably end up managing those properties later once they are let. That might change, of course, and maybe I’m just playing it safe?

Either way, it shows the power of taking time out to learn. Knowledge truly is power, even if it is the power to know that something is not for me. I picked up loads of tips and info on Saturday that will serve me whatever I decide to do.

I might kick myself later, because following Sarah’s path might be more lucrative more quickly, and I hate the thought that I might be playing it safe! But everything is fluid and movable and the journey ahead is long and full of opportunity!

 

 

Buy to Let Leap of Faith Property Sourcing

So far so good!

It’s 11.17 pm on Friday night, and I’m sitting on my bed in a hotel in Milton Keynes (I know, the glamour, right?!)

It’s ages since I blogged, I’m so sorry. Partly this communication failure was due to my laptop needing to go to the mender’s, partly it was because everysinglefrickindayseemstolastabouttwosecondsatthemoment.

Seriously. The alarm goes off at 6.02 am, I take a couple of deep breaths, spin around, eat something and suddenly it’s 11.17 at night and I’m finally blogging.

(Where do those days go? I seriously need to start taking more control of my days. Plans are needed. Ok, more of that later, not now when I’m too tired to think.)

Back to my lack of blogging. Actually, my blogging blackout has been a good sign.

Last time I scribbled my thoughts into the universe it was the day before T was due to join us, our new sales director/project manager type. It was a true leap of faith and I had NO idea here how it was going to go.

OMG folks.

It has been AMAZING.

It could have gone two ways, but I am so delighted to say that it went the right one. We are six weeks in and already things have turned around unbelievably.

I’m giving myself a quiet pat on the back here, because I followed my instincts and brought him on board, even thought it was a huge financial risk to do so. It still is – I mean, it’s early days – but it seems to be paying off.

On his second day he went round all the suppliers and potential suppliers, negotiating discounts with them on bathroom products. I mean, I don’t even know how to do stuff like that.

In the past week he has gone out alone to do price ups. There was me thinking he would be doing that six months down the line.

We are booked up until August, with deposits received from customers which means there is money in the bank like never before.

We’re not rich. Yet. Far from it. But the signs are there. Not that we’ll all be driving around in brand new Mercs by Christmas, that’s not really us – more that there is now the possibility that we will be able to build up enough reserves so that the business will still be around in a year’s time. Less of the luxury profits, more of the actually building some decent foundations.

And the very fact that I’m here, sitting in this overheated Novotel is because tomorrow I’m due to attend a course on sourcing properties. Because after cutting back on all my other business interests to focus on the main one, I have finally felt that I will be able to make some headspace for another income stream.

And because our bathroom and building businesses bring us into contact with people constantly, we are in a great place to take advantage.

So I’m hearing you ask what a property sourcer does. The answer is simple – they source property ‘deals’ for other people, usually investors.

Say someone has a pot of money they want to invest but nowhere to invest it. They might approach a property sourcer to find them a decent property at a bargain price, they then pay the sourcer a fee for that ‘bargain’ and they keep it as an investment. Or do a refurb and sell it on for profit. The key is in the sourcer fee – it can be a nice little earner, in fact I know some people making a very good living out of property sourcing.

But how on erath do you find bargain properties, I also hear you ask. That’s where the nice bit comes in. Property can be bloody brilliant but properties can also be a nightmare. Inherited houses, houses that won’t sell, houses that need refurbing etc etc can all become real problems for people. Then there are issues like divorce, relocation, downsizing etc etc which can make people want to sell fast. For these people, the property sourcer can be a huge help to get them out of a problem situation, and if that means dropping the price then for many it’s worth it.

I already work with investors and I know a bunch I haven’t worked with yet, so I know I will be able to sell on deals.

And I already know of people who have told me of their own ‘problem properties’ – so I know they are very much out there.

So I reckon I’m going to do okay at this property sourcing.

And if it brings me in a salary then that will take pressure off the business, while allowing me to split my time between the two.

I have so many ideas and plans it’s hard to contain them all. But I will, I have to!

Right now there are four people’s salaries balancing on one small job. So the foundations absolutely need to strengthen. And I’m hoping sourcing properties will compliment our family business, not distract me too much from it.

I’m hoping that T will continue to take more work away from me, so that I can do more like this, sit in the Novotel and blog about exciting things happening tomorrow.

I can’t wait!

 

 

 

 

 

 

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