What is property deal sourcing?
Property deal sourcers are an increasingly common service within the property market and are companies or individuals that help property investors to be able to accelerate their portfolio growth with profitable purchases across the world.
While property sourcers operate across the world, they generally operate within a specific location region in order to be able to offer a complete property purchase packaging deal, which should include the ability to not only locate potential investments but to also view, assess and research the suitability of the house to gain a knowledge of the return of investment a property can offer.
Ultimately the role of a deal sourcer is to act as a middleman between a vendor and their investor, creating a profitable UK property investment deal and making sure that the deal is as smooth as possible throughout the buying process.
Property Deal Sourcing Agents Industry Standards
The property deal sourcing market is becoming a busy place, with agents seeming to pop up all of the time, however while it is not against the law to find property deals without compliance, ultimately a deal has to be sold to an agent that meets compliance regulations and so a non-compliant dealer would need to find a partner to sell deals to you.
In this market, reputation is huge for deal sourcing agents and that is why we suggest only working with sourcing agents that you feel comfortable with working with as each and every agent will operate under their own specific contract and terms of service.
Make sure to only work with property deal sourcers that are able to produce a contract and ensure to read and accept the terms of the contract before commencing dealing within them in order to eliminate inexperienced or uncompliant agents.
Property Deal Sourcing Fees
It is a standard practice that property deal sourcers ask for a finders fee for deals that they have brought to investors, however the deals should offer you enough of a ROI to make their fees affordable.
While fees are not industry set, generally you should expect that BMV property deals can come with a fee attached starting from £2,000 per property, however on deals that offer a better profitability or larger discount, these can typically increase that finders fee.
As an investor, you should be presented with the basic details of a deal that should show you the ROI that a deal can present to you, as well as a clear indication of the fee that the property sourcer is asking for the deal.
Remember that these fees are designed to cover the work that they have undertaken to generate the deal for you, including viewing the property, assessing what further spend could be needed to make the property ready to buy or let to tenants as well as covering the time that they have spent sourcing the deal.
Some deal sourcers, like Vie Investment Properties will offer a small discount on finders fees for investors that are taking multiple deals from them at the same time, however that is dependant on the individual or company rather than being a standard across the board.
When should a finders fee be paid?
At Vie Investment Properties, we pride ourselves on being able to offer investors and deal sourcers a level of service that is superior to others out there, helping to offer a smooth, easy to use service that you can believe in.
When an investor is interested in any of the deals that we provide via our investors mailing list, we ask for the finders fee being paid in full to us, which will then unlock the deal and provide you with all of the information that you need to get that deal done and added to your portfolio.
While paying finders fees in full is becoming common practice across the market, we are different, we prove a safer way to buy deals from property sourcers with the offer of our free escrow service.
This means that while you have paid the full finder fee for a property, we hold those funds until both the deal sourcer and investor both agree that the deal is a valid deal and everything has been accurately listed.
Is a finders fee refundable?
Vie Investment Properties offer property investors the chance to be able to use deal sourcers with a much greater level of security as we are unlike many deal sourcing companies on the market right now.
While we do have a range of investors that we work closely with, our wider service offers investors deals from across the UK and offering a middle company solution that ensures that deals and fees are completed in a smooth and pain-free manner.
As we work with deal sourcing partners to offer the widest range of UK property deals available in the market, we have spoken to investors just like you that have had previous pain points when using deal sourcers and have now created a solution you can rely on.
All of the deals that we provide our investors come with an escrow service, where finders fees are handled directly by us and only released to a deal sourcer once both parties have agreed that a deal is going ahead.
No more deals not working out or having issues, no more issues with getting your finders fee back if the deal is not as advertised, instead we offer a smoother, more secure service.
If a deal simply doesn’t work, we refund your finders fee.
Why are Vie Investment Properties different?
Vie Investment Properties have taken a step back from being a traditional deal sourcing agent, instead we spoke with investors and deal sourcers to establish a service that offers simple, smooth and safer transactions for both parties.
We operate as a service between both investor and deal sourcers, making sure that both parties are offered security when dealing with each other, as we work to make sure that deals are as advertised and handle finders fees, holding them within an escrow service until both parties confirm that the deal is proceeding.
This means that if deals are not as advertised, we can refund the finders fee for investors without too much hassle and can ensure that deal sourcers are carrying high standards, both with their deals and the way that they operate.