In this episode, Nick delves into the critical aspects of deal sourcing and deal packaging in the property investment sector. He passionately addresses the misleading claims made by some property educators who assert that one can start in this field without any money or experience. Nick emphasises the importance of legal compliance, including anti-money laundering regulations, data protection, and the necessity of having clear contractual agreements. He outlines the various costs associated with becoming a compliant deal sourcer, such as registration fees and professional indemnity insurance, and stresses the need for experience and mentorship in the industry.
KEY TAKEAWAYS
To operate as a property deal sourcer or packager, it is crucial to comply with various legal requirements, including anti-money laundering regulations, data protection laws (GDPR), and estate agency regulations. Non-compliance can lead to fines and legal issues.
Having clear and comprehensive contracts is vital. This includes sourcing agreements, property finder agreements, and referral agreements, which outline fees, responsibilities, and terms of service to protect both the client and the deal sourcer.
Starting as a deal sourcer involves several hidden costs, such as registration fees for anti-money laundering compliance, membership fees for property ombudsman schemes, and professional indemnity insurance. It's important to budget for these expenses.
While some claim that no experience is needed to start in property sourcing, having experience is crucial. Gaining experience through mentorship or working with seasoned professionals can significantly enhance one's ability to succeed in the field.
Maintaining high standards of honesty and integrity is essential in property deal sourcing. This includes being transparent with clients, disclosing any conflicts of interest, and ensuring that all property information provided is accurate and not misleading.
BEST MOMENTS
"One of my real bugbears is property educators say, you don't need any money, you don't need any experience to do this... that's absolutely BS."
"You need to remember here, it's actually a legal requirement to be compliant and you can get fined if you're not."
"You must comply with AML regulations, especially when handling client funds or dealing with property transactions."
"You do need money to start as a deal sourcer deal packager because you need money to become compliant."
"Don't believe everything you're told on these webinars by these so-called property educators. The majority do not replace their income that fast."
The UK’s #1 Property Investing Event – MSOPI Training
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The UK’s #1 Property Investing Event – MSOPI Training London
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HOST BIO
Nick is an award winning property investor, voted Fastest Newcomer 2022 by Premier Property, and is an accredited Retrofit EPC Assessor. He sources and renovates properties for himself as well as other investors. While doing this he has developed his own systems for efficient investment, such as developing his own methods to save time when viewing properties and estimating market values and potential returns, costing out renovations.
He spends three months of the year abroad and while there continues his business with use of modern technology and his proven systems.
Location freedom has always been his "Why" for being a Property Investment and has now reached his ideal of the colder months spent in Thailand and the rest of the time in the UK, all while continuing to run his business
This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/
