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This week, I got a great question about becoming a deal sourcer. There are probably a lot of people feeling the same way, so I thought it would be a good idea to do a blog post about it. Hopefully, my answer will inspire more people to take action and make their dreams a reality!
I wanted to become a deal finder, but it seems that every man and his dog is one now. Surely the market doesn’t need 10’s of thousands of deal finders? Surely it’s well over saturated now.
That’s a great question, Alan. I think I’ll answer this in a few parts; firstly, there’s lots of deal finders out there yes, but are there tens of thousands of really good ones? I’m not sure there are. I mean right now, you say ‘every man and his dog’ is a deal finder. I think right now ‘every man and his dog’ are desperately looking to get a good deal but can’t find one, so we’re in desperate need of good deal finders.
Another thing is when dealing with deal sourcers , the way I see it, I almost see a deal sourcer a little bit like they are part of your power team.
When you’re buying a property, you need a mortgage broker. What’s the mortgage broker’s job? The mortgage broker’s job is to find you a good mortgage. Now you could say, ‘well, why don’t you find your own mortgage?’ because it’s easier and more convenient to pay a mortgage advisor or a mortgage broker to just go out scan the market and say ‘I found you this, that, I found you this mortgage’. You could find it yourself; you could go into all the banks yourself individually, but you’re paying for a service which is going to make your life easier.
Same with a letting agent, why don’t you just manage it yourself? The deal sourcer is the same. When I’m paying a deal sourcer or a deal finder, I’m paying them because they’ve gone out there on a Tuesday afternoon in the rain and they’ve viewed 20 properties. Then they’ve chosen the best one and they’ve negotiated a good price. I’m paying them because I don’t want to go out in the rain on a Tuesday afternoon and view 20 houses, so they are part of my power team.
I mean I don’t use a deal sourcer every time I buy a deal. Sometimes I’ll find it myself, sometimes I’ll joint venture. However, there’s a lot of people buying a lot of deals right now, that might use a deal sourcer again and again and again and again. That’s my answer, I hope that makes sense.
So, if you want to be a deal sourcer but you’re thinking, ‘oh man there’s loads, what’s the point’, again, what I would probably advise you to do is say, ‘How can I become the best?’ Believe me, if you’re the best or even in the top 10%, if you’re one of the best deal finders out there, then people are going to pay you because you’re the best. So don’t worry about the competition, worry about being the best!