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PROPERTY FAQs & COMPLIANCE

deal sourcing - faq

What is property deal packaging?

Property deal packaging is a service offered by a property sourcing agent or company in which they search for property investment opportunities on behalf of their clients. They receive compensation for their time and effort in the form of a sourcing fee. Investors benefit from this by gaining access to the sourcer’s wealth of experience and network of contacts. 

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Finding a property can be incredibly time consuming, requiring hours of research of an area, relationship building with vendors and estate agents and attending numerous viewings. Finding a potential investment property means finding relative comparables, putting forward offers, negotiating the price and then handle conveyancing until exchange of the property.

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Using a property sourcer is cost-effective in terms of freeing up investors time so they can apply their focus on other business activities without the distraction of actively looking for deals themselves. 
This means investors can use their time and skill-set to create more value in their business activities, which in turn can generate more income for their property business. This allows investors to buy more property without sacrificing valuable time and ultimately accelerate the growth of their property portfolio.  

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Because property sourcers spend a lot of their time building their network and generating valuable leads through different strategies, they have the ability to find the best deals that aren’t immediately obvious or accessible to mainstream investors. They have the right connections and have built a strong rapport with them, from estate and letting agents to property managers. Because of these strong working relationships, closing satisfactory deals is much easier for them than it would be for someone who’s new to the landscape.

2

Are you compliant?

Yes, we are fully compliant and have a dedicated client account. We are proud members of the UKALA Client Money Protection, we are registered with HMRC (XL006927320742), ICO (ZB312908), Property Redress Scheme (PRS031759) and have Professional Indemnity Insurance (318578/95007).

When sourcing property on behalf of an investor for a fee you need to be able to demonstrate compliance with all the relevant legislation, from registering with HMRC under anti-money laundering regulations to having the right insurances in place.
It costs approx £1,500 for a company or sourcing agent to register with all applicable agencies and authorities.

3

What are your fees?

Our fees vary depending on the property and service you require. Please ask us about our fee in relation to specific properties.

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4

Why do I have to Pay a holding Deposit to put my offer forward?

The deposit ensures the investor is serious. If we were to put offers forward and secure the deal with the landlord then the investor decides not to proceed, we lose credibility with the landlord. The deposit shows interest and secures the property whilst negotiations are under way.

5

Are you direct to landlord or through an agency?

We have properties that are direct to landlord and others that are co-sourced or offered to us by agents. Whatever the structure of the deal, we guide you through it until completion.

6

Can I view the property before paying the finder’s fee deposit?

We appreciate this is a big commitment from you. However, as a reputable and compliant sourcing company, we have assessed the property fully and we are very confident in the deal. We offer a full money back guarantee within 14 days, if you go to view the property and find it is not as we have described.

7

Can I get a refund if the deal falls through or if I change my mind?

If your offer is rejected or a mutual agreement cannot be met, then you are entitled to a full refund. If however your offer is accepted but you decide not to proceed, you will lose your deposit.

8

What do investors look for when buying a house?

The primary reason why many investors invest in an HMO or single-tenanted rental property is to generate profits from their initial stake. They want to be assured (as far as possible) that the rent or cash inflow will be greater than the cash outflows, which include any mortgage, taxes, insurance, repairs and maintenance costs, and so on.

9

Do you offer management?

We offer management for HMOs and SA's, either directly or we will sign post to other to reputable business in our network. 

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