The Problem With Buying Investment Property “Deals” From a Sourcer
AKA Why I don’t sell “deals” anymore…
I’ve moved away from the transactional side of looking for and selling investment property deals all over the place.
There are several problems with the traditional sourcing model that many “sourcers” employ.
Firstly selling “deals” is transactional and because of that it’s not really geared to provide you the best service, I could dress up a property deal in any area.
Get it manage…
Sell it to an investor as a hands off investment with great yield and a healthy BMV discount.
On the face of it all looks good, to an in-experienced investor this looks like a great deal, so they jump in
They’ve been smart and used someone else’s time and expertise to invest in property.
After a little time has passed they realize the property is not in a great location and because of this getting good tenants is harder…
They also notice that the managing agent isn’t as pro-active as they thought
Because of this and their distance from the property it’s really difficult to get work done on the property and find great trades people…
- Time goes on and this feels less like an investment and more like hell…
- Bad tenants trash the property,
- Builders run off with their “deposit for works”,
Another builder starts the job but bodges it so badly they have to get another in to fix the mess from the first one.
While all of this is going on, a break in at the property happens and the boiler and copper pipes are stolen.
This isn’t sounding so great is it?
This scenario is repeated time and time again, un-suspecting investors with good intentions get hoodwinked by un-scrupulous property sourcers.
When joining my list I ask every investor what they are looking for and where, I’ve had lots that reply along the lines of…
“Location doesn’t matter to me, I buy purely on numbers”
This scares the crap out of me and is the type of investor that is in danger of falling into the trap above.
Don’t be one of them!
You see in life not everything comes down to numbers, to be successful in life you need people you can trust – no more so than in property.
Deals like the one outlined in this post are sold everyday to un-suspecting investors, I’ve heard a story like this too many times.
Unfortunately they don’t realize until 6/12/18 months down the line by then…
It’s too late!
This is why I don’t sell deals anymore, it ’s not structured to motivate the sourcer to do the best by their clients. Like I said earlier it’s transactional.
I never liked this way of working and over time have found that the thing my investors are paying for is me, my expertise, my knowledge, experience and mistakes.
I’ve been in this game since 2004 which is a long freaking time. I’ve made lots of mistakes, some of these mistakes that have
Cost me £Millions
I kid you not…
I’ve had dodgy business partners,
Dodgy lettings agents
A business partner even went to jail!
I’ve known a couple of property trainers that have gone to jail as well (and many more that should of)
I’ve even had a murder in a property as well!
The bottom line is if I can help you avoid some of the mistakes I’ve made and seen you can’t get that anywhere else.
Working this way gives me freedom,
Freedom to be honest with you, if I don’t believe in a property or area I’ll tell you.
Integrity means a lot to me, like I’ve said I’ve made many mistakes and been a complete doofus at times but you’ll struggle to find anyone that says I don’t act with honesty and integrity
“There are no secrets to success. It is the result of preparation, hard work, and learning failure.”
– OLIVER SANDERO
I’d of made a lot more money if my scruples hadn’t got in the way (but that’s no bad thing) .
Whether you work with more or someone else above all make sure that person has the same integrity , that you can trust them with your money and your future…
Because that’s what you’re doing!
This is why I now only focus my sourcing locally to me in Norfolk/Suffolk 30 minutes from home – I can provide a much better service!
For the rest of the country I only use trusted experts that I’ve vetted personally or I support investors to find their own properties and navigate the deal and their onward success.
If you need any help reach out.
Enjoy the journey