Deal Sourcing and Investors Need to Stop Doing This! – Samuel Leeds
Hello everyone! My name is Samuel Leeds, and I am a property investor as well as a property guide and today’s topic of discussion is focused on certain things that both deals sourcers as well as investors who are paying deal sourcers for specific tasks need to stop doing immediately.
So Long story short, anyone and everyone who is either a deal sourcer or a property investor, this is for you, and I feel I have the necessary experience to be speaking on this topic because I have been packaging and selling property deals for quite some while now and have either faced these issues myself at times or helped my students who have dealt with these.
So, what I have been hearing a lot lately from both property investors as well as deal sourcers is that they are not happy with what the other person is doing. For instance, property investors are not satisfied with the deals that they are getting by their sourcers are not happy because they feel like investors are not paying them money or sometimes, they are not paying them enough, or even that they are not paying them on time. So, for all these concerns, here is what I think about it, and yes, a lot of people might disagree with me. In fact, a lot of people might even get upset over what I am going to say, but here is what I believe: do not make someone do your job just because you are incompetent to do the job yourself.
And what I mean by that is do not pay someone else to find you a property deal because you cannot find one for yourself, and there are multiple reasons why I believe in that, with the primary ones being that you at times a deal sourcers might exaggerate the quality of the property for you or they may hike up the prices for you. They might even intimidate you into buying a property deal that you might not even be necessarily satisfied with.
But that does not mean deal sourcers are unreliable or that you should never opt for one. I myself at times pay deal sourcers, but that is after considering a few factors. Yes, you can pay a deal sourcers the money when you believe you have the necessary experience and skill set as well as the knowledge to not get fooled into paying for a property deal that is not worth the amount you are being asked to pay for it. As I mentioned earlier, I myself pay deal sourcers at times to find me property deals, but I do that because I know I am not just paying through my nose or believing someone blindly. I know I have the essential knowledge and experience and the skill set to know whether the deal I am being offered is even worth it or not.
I understand a lot of property investors do not have a lot of time on their hands, and of course, time is money, so in that case, if you are paying a deal sourcers just make sure that you know what you are paying for because otherwise, it is very common and very easy for property investors to be fooled into paying for property deals that are not worth the amounts that they are being asked to pay.
Following this simple rule is not only going to save you a lot of time, effort, and money but also significantly lower the risks of you investing in rubbish deals.
Now the next important point I am going to discuss today is focused on deal sourcers. I always tell deal sourcers that never try to sell a property deal to anyone until and unless you know it is good enough that if you had the money even, you would invest in it. Do not ever try and sell bad deals just for the sake of quick cash because, in the long run, this is going to damage your goodwill and business, and besides, it is simply not good business practice.
I would also like to point out here something crucial for every deal sourcer here, and that is that whenever you sell a deal to a property investor, always close your client. Do not let them waste your time, get information out of you, or just play you unless you have gauged whether they are even serious about the deals you are offering them. Do not ever shy away from immediately asking them whether they even have the required funds for the deal you are discussing. If not, avoid wasting your time on them.
So, always ensure you ask for a proof of funds whenever Initiating a deal. And if your investor has the funds, the next question you need to ask them is whether they will be able to pay your fee the same day you sell them the deal. Otherwise, there is no point wasting your time because, again, time is money, and prequalifying whether your investors are serious buyers or not saves you both time and money.
This little business practice is going to help you achieve a lot. Most deal sourcers coming to me complain about how their investors pull out the very last minute, and on inquiring, it turns out because they never asked for their fee or any money upfront. Of course, when there is no upfront cost involved, they have the leeway to back off whenever they please, and that is why you need to close your deal to ensure you do not waste your time, money, or deal.
And that is all for today. My name is Samuel Leeds, and I also offer property investing crash courses provided by my company which also happens to be the largest property training company in the UK. For more details on property investing, deal sourcing, and property guide, subscribe to my YouTube channel and keep yourself updated.
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