Week 23: A Smooth Sea Never Made A Skilled Sailor...(Deal Sourcing)
Hello everyone and welcome back! Has anyone given ‘deal sourcing’ a go? It is listed as one of my services but if I'm brutally honest it was something that I was planning to introduce at a later stage when I get some experience for myself. It's not that I'm not confidendent but I wanted to gain a bit more experience before I started looking to find deals for other people. I mean in early stages how do I know what is a ‘good deal’? Hence, I didn't want to play monopoly with someone else's money until I was certain I could deliver. There are a lot of people out there that claim to be experienced deal sourcers when they are very new to the industry, this sits very uncomfortable with me. As entry level is very easy and minimal costs to set-up, I can understand the surge to get involved. But still, why take risks with other people's money (OPM) if you have little knowledge on the subject matter.
I on the other hand had to chop and tail as ‘Rent-to-Rent’ one of my original strategies was proving difficult in the current climate. So instead of closing shop I had to shuffle a few things around to stay afloat. I would’ve preferred the original plan but who am I to argue with factors out of my control. I mean, it's still the same plan but back to front. I am looking into deal sourcing and examining/researching various case-studies to get a better insight. I will start off with cute bite sized deals and work my way up from there. Money is not a factor at the moment as I just wanted to dress rehearse a couple of deals beginning to end to learn the process. So if the remuneration is not great I am still okay with it as it's the ‘Learning’ that I was after. I was a bit apprehensive at first but the more I looked into it the more it made sense. The first two-three are challenging and there on it's a doddle (once you get to grips with it).
Besides there were too many plus points that I just couldn't ignore.
Low barriers to entry
Low cost to set-up
Can work from anywhere; all you need is a laptop/phone and decent Wifi
Once you build momentum you can expand to a small team
Fast income in comparison to other strategies where you have to buy/build, do-up, sell/rent etc
Contrary to popular belief you don't need hoards of investors, a small pool of regulars will do
Also, if tenant management isn't your thing then you kinda bypass that area too. Lets face it, not everyone wants to deal with tenants; (nothing against the tenants of course but it's not everyone's cup of tea!)
Looking at the above, I figured will it be so bad if I started off by deal sourcing instead? In this day and age and with such economic instability you can't afford not to change, because if you don't somebody else will and that is the difference between sink or swim. So if you couldn't get into shallow waters as you hoped and are now faced with a predicament of learning in the deep end; so let it be!
“A Smooth Sea never made a skilled sailor” ~ Franklin D. Roosevelt...