Property Sourcing Courses and Compliance
Welcome to Property Sourcing Courses and Compliance | Everything you need to know!
In this blog we do our best to answer your most asked questions about Property Sourcing, Training, Courses and how you can get property sourcing compliant with the Compliance Vault.
What is property sourcing and how does it work?
Property sourcing involves finding and securing investment properties as well as opportunities, such as commercial buildings with the potential to be converted (aka commercial to residential); and land, for clients. Property sourcers typically use a variety of techniques to identify potential investment properties, or locations, such as online searches, auctions, and networking.
How do you do property sourcing, and what are the steps involved?
The specific steps involved in property sourcing can vary, but some common ones include market research, deal analysis, negotiation, due diligence, and identifying at least one exit strategy.
What are the different types of sourcing, and what are some popular strategies?
The three main types of sourcing are online through various websites, networking, local contacts and knowledge, data, lead generators.
Popular strategies include lease options, rent-to-rent, and HMO.
How can you improve your property sourcing, and what do successful sourcers look for?
Successful sourcers often have a keen eye for identifying properties with potential, as well as strong negotiation and networking skills. They also stay up to date on market trends, emerging investment opportunities, along with a general awareness of any news regarding legislation and potential interest changes on lending/mortgage rates.
What is the difference between deal packaging and deal sourcing, and which one should you choose?
Deal packaging involves putting together a package of properties that are ready for investment, while deal sourcing involves finding individual properties that meet a client’s investment criteria. The choice between the two depends on the client’s specific goals and preferences.
What is deal sourcing property, and how do you find investors for property sourcing?
Deal sourcing property involves finding properties that meet a client’s investment criteria. Finding investors for property sourcing often involves networking and building relationships with potential partners.
Something most tend to forget is to mention their new business to friends and family. This personal / private network is usually well connected and there’s also the potential to leverage trust quicker.
Should property investors use a property sourcer, and how much do they charge?
Using a property sourcer can be beneficial if you don’t have the time or expertise to find investment properties on your own. Charges for their services can vary depending on the scope of the project.
What is property sourcing compliance, and what do you need to know to be a compliant sourcer?
Property sourcing compliance refers to the legal and ethical standards that sourcers must adhere to when finding investment properties. This can include things like licensing requirements, consumer protection laws, and just as importantly, the Client Bank Account.
Is property sourcing legal, and what is the PRS – Property Redress Scheme?
Property sourcing is legal, but there are certain legal and ethical standards that sourcers must follow. The Property Redress Scheme is one of the ombudsman that oversees the industry to ensure ethical, moral and legal operation within this sector.
What is the TPO – The Property Ombudsman?
TPO – The Property Ombudsman is the ombudsman within the industry that looks after agents and investors, ensuring there is ethical, moral and legal conduct from both parties.
What is AML and how does it affect a property sourcer?
Anti-Money Laundering also referred to as MLR (Money Laundering Regulations) is an agent’s commitment to help the country prevent money laundering through high ticket items, such as property.
The onus is for the agent to do relevant checks to ensure that the money to be used in the purchase (or the property / land involved in the sale transaction) were not generated through illegal activities.
Do I need Professional Indemnity Insurance?
Absolutely. Just like you need insurance to drive, you must have insurance to cover your professional activities.
How much can you make from deal sourcing, and what is a sourcing fee?
Earnings from deal sourcing can vary depending on the scope of the project and the specific agreement between the sourcer and the client. Sourcing fees are typically a percentage of the final sale price of the property.
However, for those locations where property is priced much lower than the rest of the UK, you can also opt to have a minimum fee to cover your time and activities to acquire the property (or site).
What is the difference between a property sourcer and an estate agent?
While both sourcers and estate agents help clients find properties, sourcers focus specifically on investment properties and have a different set of skills and expertise.
Is deal sourcing profitable, and how can you succeed as a Sourcer?
Deal sourcing can be profitable if you have the right skills and expertise. Success as a sourcer often involves building strong relationships with clients and partners, as well as staying up to date on market trends and emerging investment opportunities.
Additionally, it would be worth looking into a system, or having a process, to help you with the running of your business.
What are the 5 aspects of sourcing, and what are the 4 strategic areas of sourcing?
The 5 aspects of sourcing are market research, deal analysis, negotiation, due diligence, and exit strategy.
The 4 strategic areas of sourcing are sourcing channels, deal sourcing processes, deal sourcing strategies, and deal sourcing business models.
What is the 6 step sourcing process, and what are some common sourcing activities?
The 6 step sourcing process involves identifying potential investment opportunities, pre-qualifying the deals, analysing the numbers, negotiating the deal, performing due diligence, and closing the deal. Some common sourcing activities include networking, online searches, and direct marketing.
How do I become a Property Sourcer and how long does it take?
First, it is always best to gain the knowledge of what is needed as a bare minimum.
Training with a reputable company or individual is always advisable, if you do not have any relevant experience. As an example, if you are looking for a quick introductory course, then we recommend Daniel Latto’s Property Sourcing Video Course. It’s just £27 and a great entry point to Property Sourcing or as a refresher. Then if you are looking for longer more indepth course, we like the way Valter Pontes trains his mentees, but there are many out there to choose from.
Remember, cheapest doesn’t always mean there’s a saving, and most expensive doesn’t always reflect best quality. Please do your own due diligence when engaging a mentor.
Once you’ve had some training and know what is needed from you in this role, you’ll need to set up a business and then start your legal compliance, prior to carrying out any business activities.
Is there an easy way to be property sourcing compliant?
This is a question that comes up a lot. Property Sourcing Compliance is absolutlely essential. You have to be compliant in order to source properties legally for investors. Then are many factors to becoming compliant and staying compliant. Doing it all yourself for a 1 or 2 person sourcing business will typically cost in excess of £2000 and 200 hours of your time across a year. There is property sourcing compliance training available but it’s down to you to get it right. So, is there an easy way to get property sourcing compliant?
Absolutely. Sourcing Investments Property Sourcing Compliance Vault
How does the Sourcing Investments Property Sourcing Compliance Vault make it easy?
We do all the hard work for you. From registrations to document suites to AML. The best things is that whenever there is a new regulation or update to legislation we automatically update everything. So, you don’t have to worry about being compliant as it’s all taken care of… Every quarter you submit your deals that fall under compliance to our team and you’re done.
So, you just saved 200 hours work and even better, it costs less than doing it yourself, meaning you save money and time. You can check out the Compliance Vault here
I nearly forgot. Included with the compliance vault is free access to the Sourcing Investments Agent Platform (normally £500 pa) where you can market your latest property find to thousands of property investors.
Ready to start your Property Sourcing Course, Training or Compliance journey?
Book a call for a chat to see how we can help you get started in your journey.
Right now there are thousands of international and UK investors who want to buy your properties.
Let’s grow your business and make this year the best ever!
Register in less than 60 seconds ↓
Thanks for reading
CEO, Sourcing Investments
And if you want to keep up with the latest from Sourcing Investments? Follow us on social for the latest properties, events, products, training and much more!
Subscribe to our YouTube Channel
Then follow us on any of our social media channels
Investor FB Group → https://www.facebook.com/groups/SIfamilygroup/
Agent FB Group → https://www.facebook.com/groups/sisourcingagents/
Instagram → https://www.instagram.com/sourcinginvestments/
Twitter → https://twitter.com/sourcing_invest