In a recent video, I spoke about becoming a deal sourcer. Many people are doing this wrong. They go out and find deals first rather than finding an investor and looking for the sort of deals they want. This leads to deals falling through and estate agents getting a negative impression of deal sourcers as a whole. The better way of doing things is to get the investor first. This is actually very simple to do but many people don’t know the exact steps they need to take to do this.
In this article, I am going to explain the 3 steps you need to take to get an investor before you go out looking for deals.
1. Go where investors are
The first step is going and speaking to property investors. This means going where property investors hang out. These investors could be people that are just getting into property but have funds ready to go, or they could be experienced investors looking for very specific kinds of deals. There are a number of places to find these people; my training events are a good starting point as are property networking events. You should find out what events are going on locally and attend as many as you can. Don’t be afraid to search for events outside of your area as well. Speaking to as many people as possible will increase your chances of success.
So, how many investors do you need to find before you can get started? The answer is you only need one. Once you have one serious person who wants you to find them deals, you can get going!
2. Ask what they want
So once you meet an investor at an event, what do you say to them? It’s simple, ask them what they do. When they say they are a property investor, ask them what deals they are looking for. Once the investor tells you exactly what they are looking for at the moment, explain you are a deal sourcer. Ask them, ‘If I can find you something like what you are looking for, would you like me to send you an email with the details?’ The most successful people in business find out what people want and then give it to them. Being a deal sourcer is no exception.
3. Take a fee upfront
Another thing you should do is take an upfront fee. You can’t be sure someone is serious about buying a deal from you unless they have some skin in the game. If you are going to go out and look for a specific kind of deal for an investor, you need to know they are serious. So, how does this work? You take a small refundable deposit, say £500, from the investor. This amount will be deducted from the sourcing fee if you find them a deal. If you can’t find them a deal that meets their criteria, you refund the fee. This ensures you are only looking for deals for serious buyers while being a no risk option for the investor as well.
If you would like help getting into property, why not attend my next free property training? Tickets are free. You can book one here.
