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Understanding the Role Of A Deal Sourcer For Property Investment Success · The Property Unleashed Podcast

• 0:00
  Speaker 1: How to use a deal saucer to help you find the best property deals.
• 0:04
  Speaker 1: Hello, my name is Mark Fitzgerald and it's great to have you joining me here today.
• 0:18
  Speaker 1: So today I wanted to just go through how you can utilize and use a deal saucer to help you grow your property business.
• 0:27
  Speaker 1: You see, there's a lot of people out there that don't have the time to be able to go out there to be able to view properties, to be able to find properties.
• 0:34
  Speaker 1: Why?
• 0:34
  Speaker 1: Well, maybe they're in a full time demanding job, maybe they've got another business that is taking up a lot of their time, but they've got the money and the resources to be able to put in to good deals and this is where a good deal saucer can be worth their weight in gold.
• 0:50
  Speaker 1: Now, when I say a good deal saucer, the only reason I say that is there's a lot of people out there that think deal sourcing is a get rich quick, easy to do business and whilst you can make really good money and a really good living and build a real, profitable deal sourcing business, unfortunately, I see a lot of times people falling a bit flat on their face.
• 1:13
  Speaker 1: Why?
• 1:13
  Speaker 1: Because they rush things or they try and cut corners.
• 1:16
  Speaker 1: So, first and foremost, if you're going to work with a deal saucer, they need to be compliant.
• 1:21
  Speaker 1: They need to have the relevant compliances in their businesses to be able to act as a property saucer and a lot of people do get that wrong.
• 1:30
  Speaker 1: But I'm looking at this now as an investor myself, so I want somebody to go out there and I want them to find me deals.
• 1:38
  Speaker 1: So what am I looking for when somebody comes to me?
• 1:42
  Speaker 1: Because what I see again is I go to a lot of networking events and I speak to a lot of people and there's people always coming up to me with a piece of paper and stuff like that and saying here's a brochure, I've got a deal, would you like to buy this deal?
• 1:52
  Speaker 1: And it's just like you don't even know me, you don't even know my criteria, you don't know what I'm looking for, you don't know the types of strategy.
• 2:00
  Speaker 1: You've just got yourself a deal that you think is a good deal, but who's it a good deal for?
• 2:05
  Speaker 1: Is it a good deal for the investor or is it a good deal for the landlord?
• 2:09
  Speaker 1: And that's what a lot of deal sources get wrong, because they'll go out and maybe they'll meet a landlord or they'll meet an investor that's trying to sell or offload their property.
• 2:20
  Speaker 1: The landlord will say this property is worth 200,000.
• 2:23
  Speaker 1: But I'll tell you what.
• 2:23
  Speaker 1: I'll let you have it for 175,000 if you can give me a quick sale.
• 2:27
  Speaker 1: All of a sudden they're like phew, happy days, I can do that.
• 2:30
  Speaker 1: That's a good percentage off.
• 2:31
  Speaker 1: That's a good deal for somebody.
• 2:32
  Speaker 1: Right, leave it with me, let me lock in an agreement.
• 2:36
  Speaker 1: Give me some time and I'll go out there and do it.
• 2:38
  Speaker 1: Now.
• 2:38
  Speaker 1: Have they done the due diligence to say that that deal is worth that?
• 2:42
  Speaker 1: Now, if they're worth anything, they will have.
• 2:44
  Speaker 1: They'll have had a little look, they'll have weighed things up, they'll have asked people, they'll have done their due diligence to see whether it is actually worth that sort of money.
• 2:51
  Speaker 1: And a lot of the times they've done a good job.
• 2:54
  Speaker 1: A lot of the times they haven't.
• 2:56
  Speaker 1: But also then they're just saying to themselves I need an investor now to buy this good deal.
• 3:02
  Speaker 1: I've got a bonzer deal here.
• 3:03
  Speaker 1: I want to sell it to somebody without actually having a clientele list.
• 3:08
  Speaker 1: Now, a lot of people, when you speak to them and when they get into deal source and say the hardest thing is to find the investors.
• 3:13
  Speaker 1: I don't believe it is.
• 3:15
  Speaker 1: I just believe that you're attracting or you're going to investors the wrong way.
• 3:19
  Speaker 1: So when people bring these sort of deals to me, I'm looking at them and I'm thinking to myself I haven't built up the no-lichen trust with the deal source to start with to know that their numbers are valid.
• 3:29
  Speaker 1: So all of a sudden, I'm thinking in the back of my mind I've got to do a lot of work on this deal.
• 3:34
  Speaker 1: Why?
• 3:34
  Speaker 1: Because they brought this potential opportunity to me, but I don't really know whether or not it is a good deal or not.
• 3:41
  Speaker 1: Okay, I've got to now go and do my own due diligence.
• 3:44
  Speaker 1: Now you should always do, to a point, your own due diligence on any deal, no matter if you know, like and trust the person.
• 3:51
  Speaker 1: You know they do good deals or not.
• 3:52
  Speaker 1: Why?
• 3:53
  Speaker 1: Because there's a lot of money involved here and don't go blindly into anything.
• 3:56
  Speaker 1: But when it's somebody who's new to me, somebody who I've never dealt with before, it can be a real off.
• 4:03
  Speaker 1: You know, a put off, if you like.
• 4:05
  Speaker 1: It can really put me off the fact that I've got to then think right, I need to go through all of this now to make sure that this is a good deal, then this is a deal that I want.
• 4:15
  Speaker 1: So, first and foremost, is the property something that I want in my portfolio?
• 4:19
  Speaker 1: Yeah, it's an HMO Happy days.
• 4:21
  Speaker 1: Are you looking for HMOs?
• 4:23
  Speaker 1: Are you looking for service accommodation units?
• 4:25
  Speaker 1: Are you looking for commercials and things?
• 4:28
  Speaker 1: For me, deal sources really want to go to the investor and they could say here's some deals we've done in the past or here's a few opportunities that I'm currently looking at.
• 4:37
  Speaker 1: But what is it you want?
• 4:41
  Speaker 1: That's what a good deal source or good deal source and business will already know from their investors.
• 4:48
  Speaker 1: So stop looking for a deal to sell to anybody and start looking for an investor to source for.
• 4:57
  Speaker 1: Okay, let me just say that again Find an investor and then source them the deals that they actually want.
• 5:04
  Speaker 1: One, it will save you as a deal source for a lot of wasted time finding deals that potentially you can't sell to anybody else.
• 5:11
  Speaker 1: You think they're good deals.
• 5:12
  Speaker 1: Nobody else does why?
• 5:14
  Speaker 1: Because maybe you're only meeting people that aren't looking for those types of deals.
• 5:18
  Speaker 1: And two, if you do this the right manner, you will always have somebody there to buy the deal that you've put all the time and effort into, and I just see far too many people just getting these fundamentals wrong, and it drives me mad, because if you come to me as a deal source and some people have or they come to me and I think to themselves, you know you're out there, you're having a go really good, but do you know what I want?
• 5:45
  Speaker 1: Do you know what my criteria is?
• 5:47
  Speaker 1: Well, you just want a good deal.
• 5:48
  Speaker 1: You're an investor?
• 5:49
  Speaker 1: No, no, no.
• 5:50
  Speaker 1: There's specifics that I want that I look for in my property portfolio that I want to bring in so deal sources.
• 5:59
  Speaker 1: Or, if you're looking for a good deal source, try and work with the people that are going to come up to you and say hey, mark, I'm a deal source in your area.
• 6:06
  Speaker 1: This is what I find.
• 6:07
  Speaker 1: I find these sorts of deals.
• 6:08
  Speaker 1: These are potentially deals that I've found before.
• 6:10
  Speaker 1: What are you looking for?
• 6:12
  Speaker 1: What hits all the boxes?
• 6:14
  Speaker 1: If I brought a deal to you and it was your ideal deal, what would it look like?
• 6:20
  Speaker 1: Can you fill in this piece of thought, can you fill in this form, or can I just go through and ask you a few questions?
• 6:26
  Speaker 1: Are you on so, first and foremost, are you looking for deals in this area?
• 6:31
  Speaker 1: Yeah, yeah, yeah, I am.
• 6:33
  Speaker 1: What sort of deals are you looking for?
• 6:34
  Speaker 1: Well, I'm looking for six-bed HMOs that are giving me a good return on investment and potentially need an uplift so we can get them a bit below market value.
• 6:45
  Speaker 1: We can put a bit of money into them, we can remortgage them, we can pull some of the money out.
• 6:49
  Speaker 1: Hey, if we can pull all the money out, even better.
• 6:51
  Speaker 1: But that's the sort of criteria I'm looking for.
• 6:53
  Speaker 1: Or I'm looking for single units, houses, not flats that I can do service accommodation on because I like the contractual market in the area.
• 7:01
  Speaker 1: So I know for a fact, if I can get a two up, two down with a parking space, I can let that all day long and I can make really, really good profits on it.
• 7:09
  Speaker 1: And these is my budget.
• 7:11
  Speaker 1: This is what I'm looking for in these sort of areas.
• 7:14
  Speaker 1: Now, if somebody actually came to me, took that time to just go through that and that's the very basics, that's all high level okay, I would be impressed.
• 7:23
  Speaker 1: Okay, that would actually set you above near enough every other deal saucer that I come across that stands up and says I'm a deal saucer, I got great deals in the area, come and speak to me.
• 7:33
  Speaker 1: Eh no, what you want to be doing.
• 7:37
  Speaker 1: If you go into the networking events and you're standing up and you are a property saucer and I wouldn't even say deal saucer, I'd say property saucer because that's what you are I would stand up and say I'm a property saucer in the area.
• 7:48
  Speaker 1: Here I look to work for investors and find them the best deals possible.
• 7:54
  Speaker 1: So if you are struggling for time and you need help and somebody to go out there and find you these deals and lay them on a plate for you, come and speak to me and take one of my business cards.
• 8:04
  Speaker 1: That is somebody that I would all of a sudden look at and think I need to speak to that person.
• 8:09
  Speaker 1: I need to see what they've got and what they can find, because then, as a deal sourcing, you go out and you find those deals.
• 8:17
  Speaker 1: You're not wasting time just trying to find any old deal and you may find a few deals on the way that potentially aren't for your investors, that you could still put towards them and just say I know this isn't what you're really looking for, but I've just come across this.
• 8:30
  Speaker 1: Do you know anybody who might be interested in this?
• 8:33
  Speaker 1: So you're not throwing something at me and I'm looking at it saying that that doesn't even work for me.
• 8:37
  Speaker 1: You're saying to me, mark, who do you know in your network who might be interested in this?
• 8:42
  Speaker 1: Because I tell you what I have friends, I have other investors that I might look at that and think I'll tell you what Paul might be interested in, that I'll send it across, helping each other out.
• 8:52
  Speaker 1: So if you're now looking or you're time poor and you want to work with a deal sourcer, make sure you have a criteria that you want.
• 9:01
  Speaker 1: Don't rely on the deal sourcer giving you that okay, or the property sourcer or whatever they want to call themselves.
• 9:07
  Speaker 1: Rely on the fact of this is what I'm after and only work with sources who will listen to you, who will take that.
• 9:15
  Speaker 1: And if I was a deal sourcer and I have thought about deal sourcing and things, but I'm not allowed to start any more businesses, I would say not to say that I don't work with deal sourcing businesses, but I would say to them basically, this is my criteria, this is what I want.
• 9:31
  Speaker 1: Then the deal sourcer basically says so if I go out now and I find you a six bed and an ROI of this that costs about this, that we can put a bit of an uplift into it.
• 9:39
  Speaker 1: That's a deal that you would buy from me for whatever percentage you choose to have.
• 9:45
  Speaker 1: Yes, basically, that's what I'm looking for, that's what I'm ready to rock and roll in.
• 9:50
  Speaker 1: Have you got proof of funds?
• 9:51
  Speaker 1: Because that is another thing.
• 9:52
  Speaker 1: Some people forget to ask that if you're looking at buying things, have you got the money now, or would you need investment to do it?
• 9:58
  Speaker 1: Or how would you do things?
• 9:59
  Speaker 1: Sometimes they will say to you well, let me worry about that.
• 10:02
  Speaker 1: Sometimes I say, yep, we've got proof of funds.
• 10:04
  Speaker 1: Is there any chance that I could have a copy of your proof of funds, obviously blank out all of your own details and things.
• 10:09
  Speaker 1: It's just really can help me when I'm sourcing deals and I can get a sweeter price If I can say listen, here's proof of funds.
• 10:15
  Speaker 1: We're ready to rock and roll.
• 10:17
  Speaker 1: Don't be afraid to ask that question, because this is business.
• 10:20
  Speaker 1: Take all the emotion out of it.
• 10:21
  Speaker 1: This is a business to business conversation.
• 10:24
  Speaker 1: So you really want to be making sure that you're happy that they can move forward, and I always say, as a deal source, you should always have a sort of a dummy deal.
• 10:33
  Speaker 1: Put a deal together and that hits all my criteria.
• 10:36
  Speaker 1: Give it to me and say, mark, are you ready to rock and roll?
• 10:38
  Speaker 1: And I might go whoa, whoa, whoa.
• 10:40
  Speaker 1: Maybe, maybe not, I'm not sure.
• 10:43
  Speaker 1: Then at least you know, as a deal source, if people are going to mess you about.
• 10:46
  Speaker 1: But if you give it to me and I say, yep, that's it, happy days, let's get this, sean the road, you signed your non disclaimer.
• 10:52
  Speaker 1: Let's go and lock in a deal here.
• 10:53
  Speaker 1: You're going to get paid, I'm going to make my money, I'm going to get the property deal I want you know that you're dealing with people who aren't going to waste your time.
• 11:00
  Speaker 1: And unfortunately, there's a lot of people out there that love the thought of buying properties, that love the thought of building their portfolio, but when push comes to shove, they get cold feet for whatever reason.
• 11:10
  Speaker 1: And they might have the money, they may have the proof of funds, but when it actually comes down to it, they struggle to actually pull the trigger.
• 11:17
  Speaker 1: They're a little bit afraid because they're just not in the right place for it or they feel rushed or something like that.
• 11:23
  Speaker 1: So you, as a deal source, that need to know that people are serious.
• 11:27
  Speaker 1: But it works in tandem.
• 11:28
  Speaker 1: It has to be a win-win for everybody or a win-win-win.
• 11:31
  Speaker 1: It has to be a win for the investor, it has to be a win for the source and it has to be a win for the vendor, whoever's selling their property or offloading their property.
• 11:40
  Speaker 1: Now, of course, buying properties is great, but of course a lot can go wrong with that and in deal sourcing you can get stuck in.
• 11:47
  Speaker 1: You can do everything right and then something along the lines with funding, with anything can happen.
• 11:52
  Speaker 1: Interest rates and stuff have been a good one over the last few months.
• 11:55
  Speaker 1: Something can happen that really throw a spanner in the deal and of course it falls through and then you don't get paid, whereas creative strategies as well.
• 12:05
  Speaker 1: So it's worth knowing, as a deal source, how to do a purchase lease option, which is where you agree a price on a property, maybe pay them a lease and buy it in the next few years time.
• 12:16
  Speaker 1: That's great.
• 12:16
  Speaker 1: You can do a purchase option anyway when you're doing a deal to lock it out the agreement.
• 12:20
  Speaker 1: Rent to rent is another good one as well, because if you find a rent to rent deal that can pretty much be signed within a week, so you could be getting paid very, very quickly.
• 12:29
  Speaker 1: But also with deal sources.
• 12:30
  Speaker 1: I see a lot of deal sources that have done a deal sourcing course and training and know how to do deal sourcing, know how to be set up completely and know how to go out there and find some deals, but they're not that savvy when it comes to all the different strategies.
• 12:43
  Speaker 1: They've never really dug deep into rent to rent.
• 12:45
  Speaker 1: They've never really dug deep into purchase, lease options or commercial conversions or anything like that, into the actual nuts and bolts of what makes a good deal.
• 12:53
  Speaker 1: And when rent to rent deals have been sent to me I've looked at them and don't get me wrong, I'd buy a good rent to rent deal if it was a good deal.
• 12:59
  Speaker 1: But every time I've looked at it I've always thought their numbers aren't quite right there.
• 13:03
  Speaker 1: Utilities aren't right on that.
• 13:04
  Speaker 1: This isn't quite right, that's not quite right.
• 13:06
  Speaker 1: And normally what I've done is I've said, with all due respect, the deal looks really really good, but the profit there isn't exactly right because have you taken this into account?
• 13:15
  Speaker 1: Have you taken that into account?
• 13:16
  Speaker 1: And I'll tell you what I never hear from them again and they've never come back to me and say oh, I'll take that into account.
• 13:22
  Speaker 1: Thank you very much, mark.
• 13:23
  Speaker 1: They just blank you.
• 13:24
  Speaker 1: They don't get back to you, and I always think that's a shame because I could work with you on this, but you've not got your numbers quite right, so you might end up selling a deal there to somebody that isn't really a good deal and that could end up costing somebody in the long run, which is not what we want to be doing, is it?
• 13:39
  Speaker 1: So make sure that you know the different strategies as well.
• 13:42
  Speaker 1: You've got to be a property professional and as a deal source or, unless you're just niching down into one strategy and you do know all about that strategy, maybe even you do that strategy yourself.
• 13:52
  Speaker 1: If you're trying to source for lots of different strategies, invest in yourself, invest in your knowledge and learn about those strategies as well.
• 13:59
  Speaker 1: That will make you a stronger and a better deal source.
• 14:01
  Speaker 1: Okay, a lot of people look at deal source.
• 14:03
  Speaker 1: I'm going to get into that.
• 14:04
  Speaker 1: You know, find a, find a property on Zoop, blue, right, move, property Filter, something like that.
• 14:08
  Speaker 1: Sell it on, make a few grand, get me out of a day job, happy days it's a lot more to it than that.
• 14:14
  Speaker 1: It's not quite as easy as that.
• 14:15
  Speaker 1: So do make sure that you know what you're doing.
• 14:17
  Speaker 1: So I hope this has helped you.
• 14:19
  Speaker 1: As an investor.
• 14:19
  Speaker 1: Those are the criteria.
• 14:21
  Speaker 1: You want to make sure that you've got your criteria down pat when you start talking to people so you know what you're on about as deal sources.
• 14:27
  Speaker 1: If you're getting stuck in and you're getting out there, ask the investors what they want, what do you need?
• 14:32
  Speaker 1: What do you want?
• 14:33
  Speaker 1: What is your perfect deal?
• 14:34
  Speaker 1: If I could find you that deal pretty much and package it up how you want it, would you buy it from me?
• 14:42
  Speaker 1: And if somebody says yes, I would, then that wants to be a tick on your box.
• 14:47
  Speaker 1: That then wants to be your criteria and the deals that you're searching for Is if you are a deal-sourcer trying to then work with investors who all have the same sort of criterias, don't just have a criteria well, they're looking at commercial to residential over here, they're looking for land over here and they're looking for HMOs and they want service accommodations.
• 15:05
  Speaker 1: You'll be all over the place.
• 15:06
  Speaker 1: Start niching it down.
• 15:08
  Speaker 1: So say to yourself right, well, they're looking for HMOs, so I'm going to hit HMOs and these are the investors that want HMOs.
• 15:13
  Speaker 1: They want these criterias.
• 15:15
  Speaker 1: Why?
• 15:15
  Speaker 1: Because it makes it easier for you.
• 15:16
  Speaker 1: You're just looking for a specific property type and, of course, you will see other things.
• 15:22
  Speaker 1: But you can work with other investors.
• 15:24
  Speaker 1: And if you have a little pool of other investors, other deal-sourcers as well, and if you have a pool of friends or other deal-sourcers, then maybe we do more commercial.
• 15:33
  Speaker 1: Well, I found a great commercial opportunity here.
• 15:35
  Speaker 1: Yeah, you see, if you can do something with that, maybe take a little fee from them, maybe not.
• 15:39
  Speaker 1: Maybe say well, I found a great HMO here.
• 15:42
  Speaker 1: Your investors might like that.
• 15:43
  Speaker 1: You can work together.
• 15:44
  Speaker 1: Okay, what goes around comes around in life.
• 15:46
  Speaker 1: By working together, you will help each other out and you will move yourself forward.
• 15:49
  Speaker 1: So make sure that you aren't digging deep into those.
• 15:52
  Speaker 1: And, of course, if you need any help with deal-sourcing, we have a deal-sourcing guide, we have rent-to-rent guides, we have essay guides, free e-books that you can download from thepropertyunleashedcom.
• 16:02
  Speaker 1: We have training, we have help and support and we have coaching.
• 16:05
  Speaker 1: So, if you need help with any of those, visit thepropertyunleashedcom, scroll down to the resource pages, click on that and they're all there.
• 16:13
  Speaker 1: There's master classes, there's deal-analysers, there's loads and loads of free tools and resources to help you get started in property.
• 16:20
  Speaker 1: And, of course, if you need any other further help, then reach out to us and we can help you there or you'll see it on the website.
• 16:26
  Speaker 1: So I hope this has helped you.
• 16:28
  Speaker 1: I hope you will move forward and you will start to build those businesses, those property businesses that you desire.
• 16:35
  Speaker 1: You take care and bye for now.