When you think about making money from property, the first thought may be finding opportunities on Rightmove, planning portals and so on. There are also many companies that provide data feeds and with some clever IT wizardry, you can feed those opportunities to your CRM and pick out deals to work on.
Quantity Over Quality
The problem you may face with those, however, is that you literally ‘get what you’re given’. You usually have limited control over what properties are sent to you and you end up with hundreds of properties, out of which maybe 2% could be suitable for your business. “Over the years, we’ve tried many different feed providers, but we found that the data is raw and requires a lot pre-qualifying.” Stephen Moss, Sourced’s Managing Director says. “So, we took the matters into our own hands and we have built our own property lead system, called ESCUDO.”.
What is ESCUDO?
Sourced work with a number of strategic partners who provide them with property investment opportunities in bulk. Those are then fed through ESCUDO, which consists of bespoke algorithms, prequalifying the opportunities. “Each property we are sent is fed through ESCUDO calculators, which work out if the property is right for a specific investment strategy”. Franchise Director, Chris Kirkwood explains. “Let’s take HMO for example. ESCUDO will take the whole square meterage of a property and work out how many rooms could be put in it. The property is then automatically assessed if it’s financially viable. The system only passes profitable opportunities to our franchisees, presenting them with ready-made deals.”
The franchisees can currently benefit from pre-qualified opportunities for HMO and rent to rent. On top of that, Sourced’s IT department is working on adding commercial conversions, new builds and flips to the mix.
What Happens to the Leads?
Some franchisees package and trade deals to investors in exchange for a sourcing fee. Others only look for opportunities for themselves to do. Most members of the Sourced network though, mix both and build stable cashflows to rely on, while slowly moving into larger projects, gaining experience along the day.
Once ready to work on their own projects, franchisees can utilise Sourced’s exclusive funding platform. They can borrow up to 70% of the GDV of a project, which can cover up to 100% of what they need for the purchase price and work costs. “One of the main reasons I joined Sourced was to benefit from the exclusive funding platform.” Warrington Franchisee, Mark Barrett says.
Who are Sourced Franchisees?
Sourced franchisees come from a variety of backgrounds, united with one goal: to make money from property. Some have come to this industry with no experience at all, others are seasoned investors looking to diversify into different strategies or to use the funding facility.
What Sourced offers is a property business in a box. You get training, ongoing support, a funding facility and lots of other resources. To learn more about this business opportunity, download our prospectus.
Author
Chris Kirkwood
