Let’s Bust a few myths about property sourcing. Sarah Poynton-Ryan shares with you some common misconceptions about sourcing and the reality that sits behind each of them.
Myth 1 – You have to meet the sellers
Deal sourcing and deal packaging can be 100% remote.
You do not need to meet anyone if you don’t want to. I meet many people who do travel, meet owners and agents etc. and that is fine. For me, I have visions of running a fully automated business that works hard to achieve the very best results for all of my clients. The truth is that you would be amazed the number of deals I have done via WhatsApp, Facebook and text message. There is far less stigma attached to these forms of messaging these days and many people find these methods of communication far less intrusive than a phone call. As sourcers we have very strict due diligence that we have to do on both our landlords/vendors and our investors. With the existence of video calling via Google Hangouts all of this can be done from the comfort of your home office in your jeans and hoody if that is the lifestyle you choose. You do not need to meet sellers or investors if you set your business up like that from the start. You can if you want to and if it is a deal I am keeping for my own portfolio then I always meet the sellers because in this circumstance I am the investor. If I am packaging though I will invite the investor to meet the seller. They can personally rubber stamp the opportunity and the deal is sold as seen. I do not have to travel at all unless I choose to, and neither do you.
Myth 2 – It Is Easy
Incredibly I still get people saying to me ‘oh it’s alright for you, sourcing and packaging is easy’. I call BS on this statement!
It is not easy at all. There are a series of straightforward steps to follow, and if you follow them you are on a route to success. But it is not easy, I work long hours, I put sweat and tears into my business because in reality, like any business this is not easy. There are lots of things to consider, there are lots of curve balls that get thrown at you and the process of progressing a deal over the line is a delicate process at times and needs your attention. I really struggle when I hear educators saying its “super easy” because it isn’t, it is simple but it is not easy. If you are looking for an easy life then setting up a sourcing and packaging business might not be for you. That being said, it is the most rewarding work I have ever done for 2 reasons; everything I do meets my three rules so I am ensuring that I am solving genuine problems for people and I am creating an opportunity for me to earn a fantastic living at the same time. If you look at the hourly pay rate that I have achieved on some of my deals it has been as high as £550 per hour, which is just incredible. The first time I got paid I couldn’t believe how simple it had been compared to how hard I would have worked in my previous day job to earn the same amount of money. In that regard sourcing and packaging is “easy”, but there is no magic pill here, you do actually need to want to work to create a business to see the results you are aiming for. Work the system, consistently and the success follows.
Myth 3 – It Costs Nothing To Set Up
Some of you may have read my mini rants on Facebook in regards to deal packaging compliance. Join The Property Sourcing Hub group if you have not done so already. There seems to be a huge gap in the education of sourcing and packaging, as most people I speak to have absolutely no idea what the legal responsibilities are for setting up a packaging business. Many think there are no steps at all to set up a compliant deal packaging company! This myth needs busting today. Firstly, we are governed by data protection because we hold data on our clients, so get registered. Secondly, we must be registered with one of the property redress schemes so our clients – and us – are protected correctly. Thirdly we must actively adhere to Anti Money Laundering legislation. We must follow the same guidelines as an estate agent with regard to bribery and mis-selling. You also need to consider Insurance and make sure you and your clients are protected with a policy that is fit for purpose for your business. There are also HMRC implications to your business that you need to consider from the very start. If you are not clear on exactly what you I would recommend getting in touch with me asap to find out how you can get up to speed fast. Get started right from day 1 and it will save you time and money.
Remember consistent, relentless action = results.
Big love as always.
Cogito Wealth – Thinking differently about creating wealth.