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Writer's picturePat Harper

What is Property Deal Sourcing?

Updated: Nov 25


Liverpool UK terrace houses with property sourcing pins
Liverpool Terrace Houses: Property Deal Hotspots

Property deal sourcing is the process of finding and securing investment properties for buyers. Whether you're looking to invest in a new location or don't have the time or experience to find the best deals, a sourcing agent can help you achieve your property investment goals.


For over 14 years, I have focused on property sourcing and investing. I know the UK market inside out, and now I spend most of my time helping other property investors find great buy-to-let opportunities through my property deal sourcing company.


Ready to discover how property deal sourcing can be a secret weapon for building a profitable portfolio for you?


Let’s dive in.


 Table of Contents




 Key Takeaways


  • Property deal sourcers locate properties for buyers. They aim to offer high returns and save time for investors.

  • The process includes finding deals, evaluation, purchase management, refurbishment, and ongoing support.

  • Make sure you verify the sourcer's compliance, skills, and reputation; ensure clear contracts.

  • Costs range from £3,000 to £11,000 per deal (excl. VAT), varying with the service level.

  • Unlike estate agents, sourcers work for buyers to find them profitable property investment opportunities.



Is a Deal Sourcer an Estate Agent?


Property for sale and let signs on building, Liverpool
Liverpool Property Sourcing: Estate Signs

Deal sourcers and estate agents play two different roles in property transactions:


Estate Agents


  • Work for sellers

  • List and market any property

  • Aim to achieve the highest sale price, which means they focus on maximising profits for the seller


Property Deal Sourcers


  • Work for buyers/investors i.e. those looking for profitable opportunities

  • Focus on finding the best and most profitable investment opportunities, for example restoration houses for sale.

  • Seek out undervalued or high-potential properties.


As a deal sourcer in Liverpool, I work closely with local estate agents. Although we have great relationships with them, it is important to remember that we do play different roles, mainly due to our clients having different objectives.


Conclusion: Is a Deal Sourcer an Estate Agent?


A property deal sourcer is different to an estate agent. Estate agents help sellers market and sell properties whereas a sourcer works for the buyer to find them the best property investments. They have different goals and clients in the property market. Property deal sourcing has a unique role in the industry.



Key Skills of a Successful Property Sourcer


Liverpool property deal sourcer high skills
Professional Property Sourcer: High Skills

When looking for a property deal sourcer, seek these different types of skills:


  • Strong negotiation: This helps them get good deals for clients.

  • Research and analytics: They need to be great at analysing and evaluating market opportunities. They need to know how to calculate the return on investment, the property's market value and price refurbishments. They must understand current trends and future potential.

  • Hands-on experience: Ideally they will have built a substantial profitable portfolio for themselves and have lots of experience in property deal sourcing UK. This know-how helps them spot good deals quickly, assess properties effectively and offer great investment advice and guidance.

  • Time management: Efficient work ensures no missed chances.

  • Clear communication: They must explain complex ideas simply to clients.

  • Solid network: A strong network, including a team of experts, can give you access to better deals and help manage all aspects of investments.


I have found that it can take many years to build world-class skills in some of these areas. For example, I have invested heavily into my property and business training and education and even after over 14 years in the industry I am still learning!


Conclusion: To reach your investment goals, work with a top property deal sourcing company that has plenty of experience in property investing. They should have excellent skills in negotiation, research, and property knowledge. Good time management, communication, and networking are also key. These abilities allow them to find the best deals for you.



Benefits of Working with a Property Sourcing Company


Property deal sourcer standing in a newly refurbished kitchen in Liverpool
Our founder Pat shows newly refurbed kitchen in Liverpool

Property sourcing has become a secret weapon for investors. I think this is because more and more people are realising that time is the real currency - not money. The more we can outsource to professionals, the more memories we can make with our family and friends.


Here's how a property deal sourcer UK can help you:


  • Achieve Higher Returns: Outperform traditional bank savings by investing in high-yielding properties. The average rental yield in the UK is 5.6% (Zoopla), but you can achieve above 7% when working with a knowledgeable property sourcer in the North West of England.

  • Increase Income: Boost your lifestyle by acquiring cash-flowing properties. Buy to let Liverpool properties bring in an average of £9,550 rental income per year (Total Property group sourcing data, 2023/2024).

  • Build Your Pension: Grow a profitable UK property portfolio that holds equity and provides passive income to secure your financial future.

  • Protect Against Inflation: Safeguard your wealth by investing in tangible assets that increase in value and outpace inflation.


The above explains exactly how my property sourcing company has helped many clients over and over again. Additionally when they work with us they learn how to invest 100K effectively in the property market.


Recent trends show investors increasingly value professional advice and expert guidance; 42% of investors cite expert guidance as crucial compared to 35% in 2009 (Cerulli, 2023).

Conclusion: Working with a property sourcing company empowers investors to build wealth through higher yields and expert market insights. A professional sourcer helps you protect against inflation while creating lasting financial security through strategic property investments.



How Property Deal Sourcing Works


Every property deals sourcing company will offer a slightly difference service. My deal sourcing company, offers a fully hands-free service for our investors. This is how we do it:


Property deal sourcing: 6-steps from discovery to rental
Property Deal Journey: Discovery to Rental
  1. Investment Discovery Call: We will explore where you are currently at in your investment journey, understand your goals and specific requirements and share market insights. Whether you're looking for the best way to invest 50K in the UK or have a larger budget, we'll discuss what you want to achieve with your property investments.


  2. Getting Investment-Ready:  We'll connect you with trusted professionals. We help investors learn how to set up their investment properly from the start. We connect them with mortgage brokers and accountants. This prepares us to act quickly when opportunities arise.


  3. Finding the Right Property: We use AI, online searches including Rightmove, and our network to source great deals as quickly as possible. Our team does thorough checks and handles viewings. We negotiate prices and we give you a detailed brochure that showcases the opportunity, helping you reach an informed decision.


  4. Managing the Purchase: We take full care of the buying process, ensuring all checks and paperwork are done before you buy.


  5. Refurbishment (if needed): The property may need work and if it does, we manage it all. We keep you updated on progress and ensure the property meets standards.


  6. Renting Out the Property: We oversee the letting process through local trusted agents. We ensure the property is compliant with all regulations and we help find quality tenants.


After your property is rented out, we are always on the end of the phone in case you need advice or just want a chat! Many of our clients have become successful property investors through our hands-free service. We have been investing since 2010 and we are not going anywhere.


Conclusion: Property deal sourcing streamlines property investment. It helps investors find and buy profitable properties quickly. A hands-free process like the one mentioned above saves investors lots of time and effort.



How Do Investors Find a Good Property Deal Sourcer?


Property sourcing agents networking at event in Sutton Coldfield, Birmingham
Our Founder Pat with Investor at Event

Finding the right property sourcing UK expert can be key to successful investing.



Referrals


Referrals from trusted property investors or professionals are invaluable. Word-of-mouth recommendations can lead you to reputable deal sourcers but always still do your own due diligence.


Social Media


Search social media platforms like Facebook, LinkedIn, Instagram, and X to find deal sourcers and connect with them directly.



Property Deal Sourcing Reviews


5-star property sourcing review from property investor
Total Property Group Liverpool 5-Star Review

Check online on Trustpilot and Google Maps for property deal sourcing reviews from past clients. These reviews can help you make informed decisions about which property specialist to choose.


We're proud to be Liverpool's top-rated property sourcing company. Don't just take our word for it - check out our property sourcing reviews.


Networking


Attending local property investment meetups is a good way to connect with property deal finders or join one of our Liverpool Investment Tours. You might also attend property deal sourcing courses UK. At these events you will find lots of sourcers eager to learn and develop their skills through effective training!


Property sourcing professionals networking in virtual setup
Property Investors' Virtual Networking Meeting

Conclusion on Finding a Good Property Deal Sourcer


To find a great property deal specialist, use your network for recommendations. Check social media for reputable sourcers and read reviews from past clients. Always ask for referrals from people you trust.



How Much Does a Sourcing Agent Cost?


Property sourcing agent costs range from £3,000 to £11,000 per deal (excl. VAT). Their costs vary depending on skill level, investment plan, property location, and services provided.



Pricing Models for UK Buy-to-Let Properties


Investor choosing between property sourcing services
Property Investor Deciding What Sourcing Service to Choose

For buy-to-let terraced properties in the UK, typical pricing is as follows:


Sourced Only Service


  • Cost: Around £3,000 excl VAT per deal

  • Includes: Deal finding only

  • The investor handles the rest.



Fully Hands-Free Service


  • Cost Range: £4,000 to £11,000 excl VAT per deal

  • Includes: Helping you get 'investment ready', finding the right deal, and handling legal processes. Also, overseeing refurbishment, managing lettings, and after-sale support etc

  • Minimal investor involvement


When Do You Pay?


Property sourcer's payment options
Deal Sourcing: Three Payment Options

Property sourcers usually offer one of three payment options:


  • Payment on Completion

  • Full Payment Upfront

  • Partial Payment Upfront


Experienced property deal finders often ask for full or partial payment upfront. This enables them to offer a personalised service. However, newer deal specialists might work on a pay-when-done basis. Their clients aren't committed, so they must juggle multiple customers. This can affect the quality of support and assistance that they provide.



Choosing the Right Option for You


Property sourcer in new fitted kitchen in Liverpool
Our Founder Pat Shows New Kitchen in Liverpool

Choose your sourcing expert wisely. Think about your budget, how involved you want to be, and your comfort with risk. I've found that if you need a good hands-free service you'll have to be willing to pay some money upfront. 



Conclusion on How Much Sourcing Agents Cost


UK buy-to-let terraced properties usually cost £3,000 to £11,000 (excl VAT) to source. Don't just focus on price. Consider the agent's experience, the support offered, and how hands-free you want the experience to be.



Make Sure Your Investment Is Protected


Investor reviewing property deal sourcer contract
Property Investor Reviews Deal Contract

Property Deal Packaging Contract


As an investor, it's crucial to ensure you're protected when working with a property deal sourcer. Start by reviewing their contract; a good one sets out your responsibilities and those of the sourcer. The agreement should cover key aspects like fees, services provided, and timelines.


Additionally, ensure they have property deal sourcing compliance with industry regulations:



Property compliance checklist on wooden blocks
Deal Sourcing Compliance Requirements

Conclusion on Protecting Your Investment


To stay safe as an investor, make sure your property deal sourcing agent is compliant. Check that all agreements are clear and detailed. This helps protect your interests and keeps your money safe.



Property Deal Sourcing Examples: Case Studies


At Total Property Group, we've helped over 60 investors reach their financial goals. Here's how we helped Mary invest her £105,000 in property:


Property 1: 3 Bed Mid, Terrace House in Liverpool L30


  • Purchase Price: £110,000

  • Cash Needed: £50,945*

  • Annual Rental Income: £9,600

  • Gross Yield: 7.9%

  • Predicted Value Increase Over 5 years: £33,000**


Property 2: 3 Bed, Mid Terrace House in Liverpool L20


  • Purchase Price: £112,000

  • Cash Needed: £49,345*

  • Annual Rental Income: £9,000

  • Gross Yield: 7.5%

  • Predicted Value Increase Over 5 years: £34,000**


Combined Investment


  • Cash Needed: £100,290*

  • Annual Rental Income: £18,600

  • Average Gross Yield: 7.7%

  • Predicted Value Increase Over 5 years: £67,000**


*This is an 'all in' cash figure inclusive of mortgage deposit, buying fees, refurbishment, etc

**Based on a 5% conservative average growth rate


The outcome has delighted Mary. Our team handled the entire process, which means we took care of everything - from finding suitable properties to renovating and overseeing the lettings. As a result, Mary now enjoys a steady stream of passive income, all while their portfolio appreciates in value.


Conclusion Deal Sourcing Case Studies


These property deal-sourcing examples show how smart investments in Liverpool can pay off. The average gross yield is 7.7%, which is great compared to the UK average. Liverpool also has lots of regeneration going on therefore properties are likely to go up in value over time.



Property Deal Sourcing - Wrapping Things Up


Terraced house in Norris Green, Liverpool
Liverpool Terrace: Investment Property

Property deal sourcing transforms the way investors build their portfolios in today's market. A professional sourcer sets you up for success. I've seen firsthand how it helps busy professionals access profitable deals without the usual hassle. Smart investors choose sourcers to save time and tap into the best investment opportunities.


Think of it as having a property expert in your corner. They handle everything from finding deals to managing refurbs. This means you spend more time with family and friends while they focus on helping you grow your wealth.


A good sourcer brings market knowledge, negotiation skills, and industry connections with them.


Remember, success in property comes down to making informed choices. Whether you're just starting or expanding your portfolio, property deal sourcing offers a proven path to reaching your investment goals.


Ready to take the next step? 



Take the Next Step with a Property Sourcing Company That Cares


Property sourcing service banner for Liverpool market
Total Property Group Liverpool Banner

If you're interested and ready to turn your property investment dreams into reality, now is the time to act. At Total Property Group, we understand the challenges you face because we have been there too! That's why we're here to guide you every step of the way.


Book your free Investment Discovery Call today, and let us help you identify the best opportunities and do all the work for you. This call is more than just a conversation—it's the start of your journey toward a profitable and secure property portfolio.



FAQ on Property Deal Sourcing


  1. What is deal sourcing property UK and how does it benefit investors who want to learn about real estate investing?


    Quality sourcing training and understanding different  types of property is key to successful deal sourcing. Property deal sourcing helps investors grow their portfolios. It saves time and offers access to hidden gems. I've seen how local expertise can make a real difference. If you're interested in property investing, it's a great way to learn the ropes. You'll gain insights and benefit from expert guidance as you start your real estate journey. Working with deal finders who know the local market inside out can give you valuable lessons about successful property investing.


  2. Are off-market properties better than on-market properties?


    Not necessarily, we evaluate various types of property, both on and off-market. When buying property, a good deal is a good deal, regardless of its source. Deal sourcers must know how to identify potential investment opportunities whether they are on or off-market. The key is to identify those that meet your criteria and offer good ROI. 


  3. What are the legal and regulatory requirements for property deal packaging in the UK?


    An experienced property deal sourcer in the UK must register with HMRC for Anti-Money Laundering supervision, join a redress scheme, and register with the ICO. They need insurance and must comply with consumer protection laws. FCA authorisation is not needed. To avoid risking thousands of pounds when buying properties, make sure you're working with a compliant property specialist to achieve your investment goals.


  4. How much do property deal sourcers make?


    Fees vary based on assistance level and deal complexity. Basic sourcing might cost £3,000 per deal, while full-service packages can range from £4,000-£11,000 or more. Always get a clear breakdown of included services before engaging.


  5. What are the risks of using property sourcers and how can I mitigate them?


    Many investors have become successful by working with reputable sourcers. Understanding how sourcers source properties and conduct due diligence is crucial for success. Risks include overvaluation, hidden fees, and lack of transparency, including potential misrepresentation of property conditions. Mitigate these by conducting due diligence, getting agreements in writing and checking credentials. A reputable property finder will know how to help you avoid common pitfalls and achieve your investment goals. 


  6. How long does the property sourcing and deal packaging process typically take?


    It can take 4-8 weeks to find and secure the best deals for an investor. Working with a skilled deal specialist is often the best way to streamline these steps The timeline may vary depending on market conditions, your specific requirements, and the sourcer's network of property contacts.


  7. Can deal sourcers assist with financing and mortgages?


    While deal finders aren't direct lenders, many can introduce you to trusted financial experts, offer guidance on financing options for new property acquisitions, and assist with lender documentation for investors looking to make money and secure favourable terms. Understanding various types of property financing is crucial. Ensure any financial advice comes from qualified advisors.


  8. How to get into property deal sourcing?


    To become a deal sourcer, you must set yourself apart by understanding the local market thoroughly and start with comprehensive property sourcing training from recognised industry experts. Deal packaging is the strategy to help you find lucrative opportunities. As a beginner in the property industry, start your journey by understanding the local property market. A property deal sourcer today must be able to negotiate favourable terms, find properties that meet investor goals, and utilise property professionals to package deals effectively.


  9. How do I evaluate if suggested properties are good investments and negotiate better deals?


    Review the sourcer's analysis critically, conduct independent research, and get separate valuations if necessary. Research different types of property in the area to make informed decisions. A reliable property sourcer will give you detailed analysis, but you should also conduct independent research and get separate valuations if necessary. Property sourcing training teaches us to conduct thorough investment analysis. To negotiate better deals, use research on comparable property prices, understand the seller's motivation, and be prepared to walk away if the numbers don't work. 


  10. What should be included in a contract with a property sourcer to ensure the truth about deal sourcing is reflected?


    A comprehensive contract with your chosen deal sourcer should give you clear definitions of services, fees, timelines, exclusivity terms, confidentiality clauses, dispute resolution procedures, and guarantees. Having this information is the best way to ensure transparency. It should outline the sourcer's responsibilities and your rights to ensure transparency. Consider having a solicitor review the contract before signing if you want extra assurance.



About the Author


Property deal sourcer expert smiling on a beach
Our Founder Pat: Enjoying Investment Returns

Pat Harper


Pat Harper is a respected buy-to-let property investment writer and market analyst based in Liverpool. As founder of Total Property Group and a regular industry commentator, he brings real-world expertise and data-driven insights to property investors.




Disclaimer


This article is for informational purposes only and does not constitute professional advice. The content is based on our opinions and experiences, but we make no representations or warranties regarding its accuracy or completeness. Readers should not act upon this information without seeking advice from qualified professionals. Investments carry risks, and past performance does not guarantee future results. The author and publisher are not liable for any losses or damages resulting from the use of this information. Always conduct your own research before making any decisions.

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