Russell recruits sourcing guru Alasdair Cunningham to discuss how to avoid getting caught up in bad sourcing deals. As a sourcer himself Alasdair is appalled at the behaviour of other sourcer’s. They are not compliant selling bad deals with nothing that don’t stack up.
Property sourcing is very much a regulated strategy. A lot of people can make money through sourcing but people can lose a lot of money buying from a sourcer. So it’s bitterly important that both parties are aware of what they are getting involved in.
Recently more and more horror stories have been cropping up regarding people being misled by sourcing ending up with bad deals, ones that don’t exist or not being afforded refunds. The best way to avoid being sold a bad deal by a sourcer is to do your due diligence.
As Alasdair points out their many steps that a sourcer will need to go through in order to be compliant. Making sure you track these steps will give you indication if the deal you are about to buy is from a compliant sourcer.
Every sourcer should have a website set up that will allow potential customers to access important information such:
- Company address
- Refund policy
- VAT Number
- Redress Scheme information
- Insurance Information
- HMRC Registration Number
All the above information should be located via their website. As a potential buyer if you cannot locate this information don’t be afraid to ask them. Alasdair explains how he is very open with his sourcing business. Often inviting potential buyers to contact his brokers for further background checks.
In a business like sourcing, reputation is important and can go along the way with securing your next deal and making you have continued supply of business. A lot of the business Alasdair generates is through repeat buyers. They trust his process and know exactly what they are getting and have no fear in buying 5, 6 or even 8 properties from him.