| Being a finder/sourcing agent is one of the best | | | | know all the in and outs. Once you have got all the |
| ways to get started in property. The reason for this | | | | relevant information, try to contact investors and say |
| is two-fold: | | | | you have a potentially very profitable deal. The best |
| - Firstly, you get to take a finder's fee. This fee is | | | | way of contacting investors is by posting messages |
| normally set by you and varies depending on the | | | | on property forum pages, and by meeting them at |
| amount of work you have had to put in to the deal. | | | | property clubs and networking events. If you have |
| - Secondly, you are getting invaluable experience in | | | | done your homework correctly and have a good |
| learning how to analyse deals and put them together. | | | | deal, you shouldn't find it very hard to find investors |
| As a property finder you can charge anything from | | | | willing to consider the deal you are offering. |
| £75 upwards. A lot of property finders charge | | | | 2. The other alternative is to post messages on |
| a flat fee between £1000 and £2,500. | | | | property forum or chat pages, and network with |
| Others charge between 1% - 2% of the price of the | | | | property investors, telling them that you are a |
| property. As you can imagine, this can be quite | | | | property finder and finding out what their individual |
| lucrative if the property is worth £750,000. | | | | criteria are. You need to get as much information as |
| Most property finders would consider being flexible | | | | possible from them, build up a database of each |
| with the fee, depending on the sort of service they | | | | investor and their specific criteria and strategy and |
| had to provide. For instance, they would charge you | | | | then source property according to their specific |
| more if they had to source a property and find out | | | | needs. If you do this well, they will find it difficult to |
| how much work was needed to renovate/refurbish | | | | resist the deals you put before them, because you |
| it, go out and get quotes from builders and then | | | | will only put deals before them that you already |
| negotiate a suitable discount for you, than if they | | | | know match their strategy. |
| just went out and found a property below market | | | | One thing to keep in mind as a property finder, |
| value in an area of your choice. | | | | especially as a beginner, is that it's a lot easier to |
| The fantastic thing about being a property finder is | | | | source property near where you live. So, if it is |
| that, as a beginner, you don't really need any start | | | | possible for you to come up with profitable deals |
| up capital and you are learning all the time about how | | | | near where you live, do that as your first priority. But |
| to analyse and put deals together. You will be | | | | if you are struggling to make the figures add up for |
| sourcing for investors, so you will learn very quickly | | | | Buy to Let near your home, you might have to look |
| about the criteria they use, and, because they are | | | | further a field: some times much further a field. |
| most likely successful themselves, you will be able to | | | | But don't forget that, just because the figures don't |
| analyse their buying criteria and use them as potential | | | | add up on a Buy to Let basis, doesn't mean that |
| criteria for the properties you plan to buy in the | | | | they won't add up for a developer that just wants |
| future for yourself. | | | | to buy a property do it up and sell straight on. So |
| By sourcing for investors, in the beginning especially, | | | | don't write off the area you live in straight away, |
| you will be bringing deals to them that they will | | | | because, no matter where you live, there are bound |
| reject. But they will normally tell you exactly why | | | | to be a few really good quick flip (buy, do up and sell |
| they are rejecting them, so that you won't be | | | | straight on) opportunities that come up from time to |
| bringing them the same deals again. Hence, there is | | | | time. |
| probably no quicker or better way for you to learn | | | | Being a finder goes hand in hand with contract |
| about what deals are profitable and why, and what | | | | trading, where you can make thousands of pounds |
| deals look good on the surface, but once you dig | | | | from property without every really owning it. So, if |
| deeper are better avoided. | | | | you fancy making money from property, but you |
| There are two potential ways to set yourself up as | | | | don't really want to be an investor or developer, you |
| a property finder: | | | | could consider one or both of these ways to make |
| | | | money. You would need to become fairly skilled at |
| 1. Just start looking out for potentially profitable | | | | either of them and be able to access the property |
| properties that you think investors or developers will | | | | market well, but there is potential there to start up a |
| be interested in. Once you find them, do your | | | | business as a property sourcer/finder and have |
| homework on them, and analyse the deal as if you | | | | regular clients who would normally be investors or |
| were going to buy it yourself. So this includes details | | | | developers. You would know their buying strategy |
| of the local community, any regeneration planned for | | | | inside out, know exactly what they are looking for |
| the area, shops and transport links, crime, rental | | | | and just go out and find these properties for them. |
| prices etc. You are going to be approaching | | | | In the short term this is definitely something you |
| professional investors, so they are going to want to | | | | could do in addition to your normal daytime job. |