Sourcing deals is one third of your property business. The other is Funding, and then the overall Project management/running a business.
So it’s pretty vital, right?
I like to use a few different methods to source, although I have been slacking on my ‘Direct 2 Vendor’ approach, as I’ve had a lot of results with what I do currently. My D2V approach will kick off at a much bigger scale once the cash flow of the portfolio balances out, as we are currently in an exponential phase of growth.
Estate agents, the most obvious and visible source of deals. Those two words are important, for good and bad. Vendors will automatically go here, where else does one go to sell their house? It’s standard to use an agent, most people do. (Yes, some people dislike them and they are great for D2V). Agents also then have visibility online and physically for their deals - the bad part. This means you, your mum and your long-lost uncle and his dog can all see these properties, and view, and offer. Oh, and so can your competition.
How do you get these deals, without a brown envelope stuffed with cash?
Relationships. I’ve done a podcast on working with agents, but my deals have come down to this. If they like you, see you’re good for it and have the funds, they will want to work for you. Especially if you’re fun! Be memorable, in whatever way, this helps massively.
Speed. You need to be able to view the second it goes live. Luckily I have people in my areas who will view for me with 2 hours notice, due to my relationships. This has secured me 2 deals so far, with more to come. I’ve lost deals before, when I didn’t have someone in-area or my schedule was too busy, and it’s annoying.
Distance is no excuse for this, make it happen.
Track record. With that particular agent. You can’t do anything about this, until you’ve purchased at least one property from them. You can mention you’re buying X many others, or if they follow you on Social Media, they’ll see this themselves ;). Be subtle, but show that you’re serious and your appetite isn’t running out anytime soon. I always say ‘I need 2 more!!’ not 1 more,
little things make a big difference.
Look out for Part 2 coming soon!