What Is Property Deal Sourcing And Deal Packaging?

Property deal sourcing and deal packaging have become increasingly popular services in the UK property industry. This article provides an in-depth look at what these services involve, the key players, processes, and benefits.

What is Property Deal Sourcing?

Property deal sourcing refers to the process of researching, analyzing, negotiating, and securing property deals on behalf of investors.

A property sourcer takes on the role of finding viable property deals that match an investor’s specified criteria. They utilize their market knowledge and connections to source discounted or off-market deals that offer good investment potential.

The key players in a property deal sourcing arrangement are:

  • Property Sourcers – The deal sourcing experts who find and secure property deals for investors. They take care of all the legwork from start to finish.
  • Investors – Rely on a property sourcer’s expertise to find deals matched to their investment goals and criteria. They provide the capital to purchase the secured deals.

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The Property Deal Sourcing Process

Property Deal Sourcing Process
The Property Deal Sourcing Process

Sourcing a property deal on an investor’s behalf involves several key steps:

  • Research – Analyzing area market conditions, trends and property options to identify viable deals.
  • Valuation – Determining a property’s value and rental income potential.
  • Negotiation – Negotiating purchase terms favorable to the investor’s goals.
  • Compliance – Navigating legal requirements around client funds and secured deals.
  • Securing the Deal – Completing due diligence, exchanging contracts, and keeping the investor updated throughout.

Property sourcers add value by utilizing their specialized expertise to source discounted or off-market deals on an investor’s behalf. Their knowledge and connections enable them to find deals that offer strong rental yields and investment potential.

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What is Property Deal Packaging?

Property deal packaging refers to preparing a fully-vetted investment opportunity for investors. The deal packager takes care of sourcing a viable property deal, confirming all figures, organizing legal details, and presenting a comprehensive proposal outlining the opportunity.

As with deal sourcing, there are two key players:

  • Deal Packagers – Source, confirm, and package property deals into a turnkey opportunity for investors.
  • Investors – Receive pre-vetted, analyzed deal packages to quickly evaluate and invest in.

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The Property Deal Packaging Process

Yellow and Black Bee Hive Process Concept Map

Packaging a property deal involves:

  • Sourcing – Finding a viable property purchase opportunity and confirming all details.
  • Research – Analyzing comparables and area market conditions to determine figures.
  • Verification – Liaising with professionals to verify purchase figures, expected rents etc.
  • Compilation – Compiling the deal package outlining what’s included, fees, and expected returns.
  • Presentation – Presenting the packaged deal to matched investors.

Deal packaging allows investors to access fully-vetted opportunities without spending time assessing deals themselves. The pre-confirmed figures and packaged details reduce risk as well.

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Key Benefits of Property Deal Sourcing and Packaging

Utilizing the services of property deal sourcers and packagers offers several advantages:

  • Expertise – Access specialized experience in finding and assessing property deals.
  • Time Savings – Avoid spending hours finding and analyzing deals yourself.
  • Access to Deals – Increased ability to access discounted and off-market opportunities.
  • Risk Reduction – Pre-confirmed figures and details reduce risk.
  • Convenience – Fully packaged deals allow for quick investment decisions.

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Final Words

With their ability to find discounted deals and prepare turnkey opportunities, property deal sourcers and packagers have become a valuable resource for time-poor investors. They enable investors to build a portfolio through deals they may not have been able to access themselves.

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