If you’ve been interested in property sourcing for some time now, but aren’t sure how to go about it, then read on…
Here at Sourced, many of our franchisees started off sourcing while holding down a day job. Eventually, they became so good at sourcing that financially, were able to pack in the day job and spend time earning money by doing what they loved.
Other Sourced franchisees went straight in to sourcing on a full-time basis – so fascinated were they by this new occupation they had discovered. The point is, property sourcing property can take up as much time of your day-to-day life as you want it to. That’s how flexible sourcing is. And, because of this, it is one of the best careers for giving you a good work/life balance.
When can I Pack in the day job?
You will obviously have to earn enough money to sustain your lifestyle i.e. pay the mortgage, buy food, continue with certain hobbies etc. With maximising your sourcing pipeline or utilising the right property investment strategy, there’s no reason why you can’t go on to earn more than your day job pays.
Strategies for Starting out
Deal Packaging and Trading
With this strategy you don’t even need to put down any money. Find an investor, motivated vendor, and get going. This will give you small to medium lump sums of income on a regular basis.
There is usually an initial outlay involved in the set-up (from £3,000 to £10,000 on average), but you will generate monthly income once you get tenants in.
You’ll need money to buy the property in the first place. But you’ll add value by modernising/upgrading the property and selling at the higher price.
It could be a number of months – and even a year – until you start seeing some profit with two of the strategies: Rent-to-Rent and Flips.
Rent-to-Rent can take a while to set up (i.e. refurbish/convert the property and find tenants). You will also have to manage it if you don’t outsource this, it can take up quite a bit of your time too. There is also quite a bit of legislation to read up on if you go down the HMO route.
Flips can also take some time to refurbish, then sell on. You’ll want to make at least 20% profit too.
Tips for Property Sourcing
Finding the right property can be tricky, but the harder part is finding the investor or buyer and having that trusting relationship that they buy from you instead of going elsewhere. It’s about relationships rather than profit. Other top tips are:
• Have a clear, defined strategy and focus only on this.
• Build relationships. You will need a power team – investors and also solicitors who understand the strategies you are using. Then there are architects, surveyors and even the local planning and housing offices.
• Spend as much time talking to investors as you do sourcing.
Join Sourced Network
Interested in working with us on a part-time basis as a property sourcer, with the view to progress to do your own projects? Property is a fascinating and fun industry – in addition to proving very lucrative.
To find out more about how Sourced can help you to kick-start your property business, download Prospectus today.