SOURCING/OFFER 
CALCULATOR

Sourcing or deal packaging is the finding and securing of a property deal for an investor or another sourcer. The property deal depends on the  criteria of the investor and can vary from simple buy to let/rental property to big commercial property projects or land.

Features

1. It enables you to start making money quickly

2. Low cost to set up and start

3. Lets you meet potential future joint venture partners

4. You need to be legally compliant

5. Would cost around £1000 to set up

6. Could be potentially time consuming depending on the business model

How would I do it?

I would start networking with potential investors and other sourcers and get to know what they are doing, what their investment criteria are, how much they are paying or getting paid and what problems they have experienced and how they solved them.

I would then set up a compliant company and put in the work.

I could potentially charge 3% and upwards of the price of a property as commission for each sourced property deal.

Scenario:

You check online and you find a property for £250,000 that has been sitting empty on the market for 1 year. You do the research and see that properties in the area of that size usually sell for £275,000. You go and view and see that it need a refurb of about £5,000. You offer the seller £220,000 and you agree at £225,000. You then sell then sell this deal to your investor for commission of £6,750. Total cost for the investor (Property+refurb+legals+stamp duty + your commission of 3%) = £239,702.5 

Equity = 275,000 - 239,702.5 = £36,297.5

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You can use calculator below to do the calculations and estimate the profit for this strategy.

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