What Is Property Deal Sourcing And Deal Packaging?

Property deal sourcing, sometimes known as deal packaging, is basically a way of making money in the property industry without ever owning the property in question.

Deal sourcers act as a middle man between the deal and the person trying to buy or sell a property.

Property Sourcing Definition:

In simple terms, a property deal sourcer will find a deal, negotiate and finalise it, and match that deal to an investor who is looking for that particular type of deal.

If the investor is happy with it then the deal sourcer will hand the deal over to the investor for a fee.

This fee is sometimes called a finders fee (also known as a sourcing fee).

This full process is known as property deal sourcing or property deal packaging.

How Property Deal Sourcing Works – Graphic by propertybeacon.co.uk

This allows deal sourcers to make money in the property industry without needing the capital to buy a property themselves or ever have any ownership. 

Deal sourcers benefit in the sense that they can build up decent cash flow from deal sourcing without ever needing the savings to buy a property outright.

Investors benefit from being able to find deals quicker and save time. This can be important for people who have money but don’t have as much time. 

What Is A Property Sourcing Agent?

A property sourcing agent is simply the person that carries out any deal sourcing for investors. 

A property sourcing agent is a person who finds appropriate property deals for investors and makes sure the deal is secured and agreed upon.

These deals will often be below market value properties.

Then they pass it on to the investor for a fee.

This is different to an estate agent which is a different thing all together.

What is a ‘Property Sourcing Agent’? – Graphic by propertybeacon.co.uk

If you don’t want to become a deal sourcer yourself, but think they could help you find investments for you then learn how to find a property sourcing agent.

How Do You Become A Property Deal Sourcer?

You can either become a property deal sourcer on your own or you can choose to work for someone else.

On Your Own

To become a deal sourcer in property you need to make sure you cover a few things. 

First things first, you’ll have to learn how to find deals as a property sourcer.

Luckily, nowadays it’s easier than ever to find deals because you can use online tools for property deal sourcing,

Once you;ve figured out how to find and package deals, you can’t just put up a website or Facebook page and start telling people you’re sourcing deals now and start taking payments… (I mean technically you can, but you shouldn’t).

Before you become a deal sourcer, you should make sure you know all the rules in the UK to make sure you are compliant

This protects not just the investors but also protects you as the deal sourcer.

You’ll then have to make sure you can find deals at the same time as finding investors that you can pitch your deals to.

Working For Someone Else

The other option is to try and get a job for an existing property sourcing company.

This would be a good way to start learning more about the role and you could then move up the ranks or even start your own company.

To find jobs in property sourcing companies you can check job boards like Indeed.

Before you start looking at jobs, you probably want to know the what kind of salary to expect as a property sourcer when working for someone else.

Options to become a property deal sourcer – Graphic by propertybeacon.co.uk

Who Is Deal Sourcing For?

Deal sourcing can work for anyone, from people with no properties to people with large portfolios. 

Sometimes people will package deals as their whole income and that will be their bread and butter.

On the other hand, there are people that will invest in their own properties and do a bit of deal sourcing on the side. 

Can You Make A Living As A Property Sourcer?

The big question everyone wants the answer to:

Can I make money as a property sourcer and when can I buy myself a nice Lambo?

– Every newbie in the property industry
image of a deal sourcer imagining making lots of money thinking of fancy car and big house

Well, you might not get a Lamborghini straight away.

But if you’re consistent with learning and improving and you take your time then deal sourcing can definitely lead to a profitable property business.

If you consider that the average finders fee from deal sourcing is anywhere from £2000 to £6000, you can see that with just a few deals a month you could make a decent living in the UK. 

Since you can make a decent living as a sourcing agent it’s a great way to get started in property with little money.

This doesn’t mean that it’s easy though. You need to make sure you learn not only about sourcing property but about the property industry as a whole. 

How To Learn About Property Deal Sourcing

Learning about deal sourcing is vital to success. 

We expect doctors to know what they’re doing because they’ve spent years and years studying before they ever treat a real patient. 

Take this mentality into your property journey.

Always look to improve and not only will your investors have better returns but your bank balance will thank you too.

As a quick summary, you can learn about property deal packaging through: 

  • Podcasts
  • Books
  • YouTube videos
  • Websites like Property Beacon
  • Forums
  • Property Networks
  • Courses (be extra careful here though)
  • Property Newsletters
  • Social Media
Ways to learn about property deal sourcing – Graphic by propertybeacon.co.uk

The video below by ‘The Anxious Investor’ is a good overview of property deal sourcing (you should definitely check out their other videos too.)