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How does a sourcer package deals?
Hi Az,I am not sure of the context you refer to but deal "packaging" in my opinion is an out of date term. It used to be used when a deal packager lined up a mortgage product/finance and solicitor to go with the deal, but those days are long gone now.Where have you heard the term "package a deal" used and in what context? I suspect it might be someone trying to sell your a course!
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Hi Vanessa, I’ve been doing research in Liverpool for a suitable BTL. Spoke to a property sourcer , it was him who said he would package up a couple of properties and let me have the deals. So wondered what he would do to package up the deals. Am I wrong in thinking that he just needs to tell me about the properties and the price I could buy them for?
Vanessa, this sounds like the somebody Ellahi's latest marketing venture where a novice investor finds a "BMV" property they can't afford to buy themselves but do a financial analysis and local comparables on it and sells it on to an investor who has money to buy the rental property in question. I'd be interested to hear your views on this stuff, Vanessa.
Do you mean Aarsh Ellhari?To me, that is akin to the "blind leading the blind". Metaphor - you have someone who has read a book about how to fly a helicopter and who does not have a pilot's licence selling the concept of flying a helicopter to someone else.A little knowledge is a very dangerous thing in property.
That's who I was referring to.
``Am I wrong in thinking that he just needs to tell me about the properties and the price I could buy them for?``
You are right in thinking that. Package is just a neat term to encapsulate that process
They can then add on extra bits of data to assist like rental values , type of area , tenant demand etc
They could offer you their broker / solicitor etc to streamline the process further
Anyone can present data in a high tec glossy format and many do and charge big fees for that
But many dont even know the area they are talking about as they spread themselves far too thin
I don't see these people as sourcers - They are just data presenters or researchers
They save you a bit of time maybe
The skill of a sourcer in my eyes though is someone who can analyse the true value of that data
That can be worth paying for .
But check they really know their stuff rather than just being good with computers and flannel
Jonathan Clarke. http://www.buytoletmk.com
Hi Az,What exactly are you paying for? Is this individual a member of an independent redress scheme? What experience do they have? What is their level of local knowledge?What level of granular detail to they go into about the property, the area, the numbers and ROI?From what you have said, you might as well flush your money down the toilet as pay for this person's "services".
I really struggle to understand what value a sourcer can give as all information is freely available.Unless they have information of properties not listed for sale on Zoopla or Rightmove? Also BMV is seriously misused as a word. A run down property will always have a lower value than a refurb place. And just because a property can’t sell for £100k and someone get it for £80k doesn’t mean it is BMV as the market value was £80k to begin with.To be truly BMV it has to be a place you buy and without doing anything with it can be sold for more.Even the properties I have purchased on auction has not been BMV as the price I paid was market value for the state and risk the property had.With information so freely available I will state that BMV isn’t really real, unless the seller is desperate and want a quick sale and doesn’t care about the price which can happen with divorce or death.
The only time I feel that an experienced sourcer may be worth their fees is when the investor doesn't have the time to do the legwork. But to be honest 'sourcer' sounds akin to snake oil salesman to me, I would look for a buyer's agent instead to find me investment opportunities tailored to my expectations, not just flog me anything they come across.
Thank you for your comments. I agree that one must do ones own work to be comfortable. This guy contacted me ,we had a chat but it seemed a little bizarre that he couldn't give me definitive numbers.