Written by Lewis Ridley
Updated over a week ago
If you’re looking to become a property sourcer, it can help to understand how much you’ll make in the process.
In simple terms, property sourcers make between £3000 and £5000 per deal in the UK. However, this depends on the deal and how much ROI is expected.
In this article, I’ll go through how much property sourcers make in more detail so you can assess if it’s worth jumping into.
The price property sourcers can sell their deals at varies depending on a number of factors. If you’re looking to get into property sourcing, you need to make sure you’re squeezing as much money out of each deal as possible. This way, you’ll have to sell less to achieve your monthly goal.
The potential ROI for the deal is an aggravating factor when it comes to deal pricing. The more ROI an investor makes of a deal, the more comfortable they’ll feel about paying a higher fee.
Of course, the way you present the deal and how well you know the numbers will impact this. So, when you’re researching deals, you need to make the numbers work in favour of your investor.
The more hands-off it is for the investor, the more money you can make per deal. This is because some investors want their sourcers to handle everything. This includes finding the deal, talking with the relevant parties (agent, vendor, etc.) and closing the deal on their behalf.
Others are happy with sourcers bringing them half-finished deals so they can finish off the rest. This might be because these investors want to vet the deal themselves beforehand or might have their own team who needs to investigate.
Typically, done-for-you property sourcing warrants the higher £5000 figures. Whereas, simply handing over deals with no follow-up will lead to deals in the £2000 - £3000 range.
The type of deal you present to the investor will determine how much you can charge. The amount you make can change depending on if the deal is a straight sale, a portfolio, a lease option agreement, etc. So, it’s important to have an idea of what you want to sell.
Typically, the type of deals that are going to warrant the highest fee are going to be unique, such asHMO finds or profitable renovation projects. These are the kinds of projects that can produce a large ROI either in a lump sum or monthly cashflow.
If you’re looking to optimise your fee, focusing on rarer, harder-to-find opportunities will produce the most reward.
Lots of people start property sourcing because it doesn’t require much start-up capital and doesn’t require that much property knowledge. It has a low barrier to entry, allowing people to start their property journeys here.
However, although some use the fees they earn to start putting money down on a property of their own, many will continue to source properties as a full-time career.
Because of the high fees, it is possible to close 2 deals a month and earn £8000 - £10,000. If you were to continue this throughout the year, you could comfortably make £100,000 working parttime.
So, although property sourcing can be used as a stepping-stone, it can also fuel a full-time career.
Property sourcers make a good chunk of money. Because deals can be sold for £3000 - £5000, sourcers can comfortably make 6 figures a year with very little work.
If you want to learn how to become a property sourcer, we have plenty of resources in our knowledge centre. If you want to shortcut your way to finding deals, you can also give our platform a spin – it helps to find profitable property projects that investors love. Try it now.