Today’s first episode of thoughtful Thursday features the UK premier property sourcer, Alasdair Cunningham.
One of the biggest and most profitable strategies is property sourcing. Sourcers can typically earn between £1,500 to £3,000 per deal. Due to the fact that a lot of money can be made through this strategy, it’s essential that you are fully compliant. Any sourcer that you may want to work with have shown you proof of their compliance is vital.
Alasdair tends to source 18-22 properties per month. His philosophy on sourcing is that they will do all of the leg work for someone that wants a property sourced.
This could include doing all the due diligence, finding estate agents and property management companies. Putting together the key components of a power team for the potential investor. Viewings to assess the condition even potentially putting together a package of how much refurbishment could cost if one is needed.
Sometimes as a sourcer you could view between 12-14 houses in order to find just one property to source. Including the travel and due diligence you could spend a day and a half on one property that may no end up being sourced.
Even after all due diligence is done and the buyer is happy with the property that has been sourced. The sourcer cannot guarantee that it will be rent and will be profitable. It’s up to the buyer to make sure they know what they are doing and have created the ideal strategy.
Sourcing is an extremely useful tool that all investors should have in there armorer as you never know when you’ll need it. You could come across a property that may not be in your patch or a strategy that you are using. Having the skill and knowledge to pass it on is vital to being a well-rounded investor.
Alasdair does have a few qualms with other sourcers who are not compliant and operate in bad faith. Selling deals on social media, Gumtree scams where landlords pretend to have properties stealing people’s money.
The trick to where Alasdair has the upper hand is that he is very accessible. He has built a strong and reputable brand. People believe in his proven results and is the reason why he is the premier sourcer.