Mar 24

The Best Way To Get Started With Property Investing 2022

Starting with property investment can be overwhelming. There seems to be so much to know and many books, courses and training workshops. Where do you even begin?

What’s The Best Way To Get Started With Property Investing?

Luckily, as a newbie, there is a way you can quickly get started and become financially free rather than taking the slow route of saving for 30 years.

This strategy is called deal sourcing.
If you are about to follow my advice in this blog, you have to promise me one thing: Do not go into this thinking it's quick money. If you do, you will probably just end up adding to the array of terrible deal sources out there. Don't be one of them. Get some property education first. Besides these blogs, here’s a book to get you started: Behind The Bricks.

If you treat this like a business, it could do wonders for your cash flow in the long run. Like any business, you'll need to put the effort into providing the best possible service for your clients. If you don't, the property world is small enough for word to go around and you'll quickly be forced to look for another 9-5 job to pay the bills.

What is Deal Sourcing?

Alright, let's cover the basics. In short, deal sourcing is a strategy where instead of investing in property with your own money, you become like a glorified estate agent. (don’t @ me haha!)

Let me explain. You find great investment properties and then pass them on to other property investors for a fee. Sounds simple right? It is (hence why I recommend it for beginners), but it's not easy. The process goes like this:

  1. You find a potential property deal through your network, online searches, through agents or vendors.                                                      
  2. You do the research to see if the deal is viable.Once you know that the deal is as good as you initially thought, you go ahead and secure it with the agent or vendor (ask yourself if you would spend your own money on this deal).                                                
  3. Once secured, you'll just have to find a willing investor, which shouldn't be too hard if the deal is as good as you think.                                          
  4. Congratulations. You are now technically entitled to your sourcing fee, which can range from £2k-£5k per deal! The reason I say "technically" is because you normally don't see any of this money AFTER the investor has actually completed the deal.                                                                                                        
  5. There should be an asterisk here because you can choose to leave the investor with the property and refurb, or you can choose to stand out by offering to oversee the refurbishments as well. 

So that's deal sourcing in a nutshell. Now let me tell you why this is such a great place to start if you're completely new to property investing.

Make sure to read part 2 to learn the benefits of starting a deal sourcing business.

Read more here: 3 Reasons Why You Should With Deal Sourcing.
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