featured-image-of-a-blog-on-which-it-is-written-how-to-set-up-property-sourcing-business-in-Birmingham

How to Start a Property Sourcing Business in Birmingham

Table of Contents

Thinking of starting a property-sourcing company? If yes, then now is the time. The market is a great place to rise high. Reports indicate that real estate buying will grow at a CAGR of 4.19% between now and 2026. 

With the market growing rapidly, being a property sourcer will benefit you. 

Getting your property-sourcing business legally and properly set up should be one of your top concerns. 

The consequences of not getting this right can harm your business and you as the proprietor, so you cannot afford to make mistakes. 

Hence, before you start any business, make sure that you have taken the necessary legal steps to set up your business.

As a guide to help you get started, we have put together a series of tips to help you establish your property-sourcing business.

Key Takeaways:
1. Depending on where you live, you can become a property sourcer by following the right tips.
2. A property sourcing company is licensed to help investors get the best deals on properties.
3. The job of the property sourcing company is to bring buyers and sellers together and negotiate the best possible deals.

The Road to Becoming a Property Sourcer in Birmingham

Would you like to create a business out of investing in property but don’t know where to start? Property sourcing is the right step for you! 

A property sourcer, or a property sourcing agent, must come up with property deals for the investors. 

Here are the tips you need to follow to become a property sourcer in Birmingham:

Get to know a particular market inside and out by focusing on one location. 

Be courteous to everyone you meet, especially to estate agents and property managers. You never know when they will turn up again or who their contacts are, so respect them always.

Identify the perfect property for your investor clients by getting to know them intimately. A property should be tailored to a particular client rather than broadly marketed.

Setting Up a Limited Company for Property Investment.

When starting a property business, a limited company is the best option. Are you ready to move forward? This section will walk you through setting up a new limited company.

Getting your company incorporated

A limited company is a legal entity you must incorporate before building your property portfolio. As an investor in property, the first step entails registering and paying taxes to HMRC and the Companies House.

Registering your company with the company house 

Company name: To register your company with the company house, you first need to choose a unique business name for your property sourcing company.

Registered address: Depending on your situation, you may either need to provide the address of your registered office online or use a paid-for service or let your accountant provide the address.

Directors: When setting up your company, you must designate at least one director.

Shareholders: A shareholder must be appointed in the company, and a director can also serve as a shareholder.

Determine who has significant control over the company and identify them

There is a requirement for Companies House to have details about the people who own the company or control it when you incorporate it. To be considered as having significant control, a person must possess the following:

  • Shares worth more than 25%
  • Voting rights exceeding 25% 
  • Minority board members can be appointed or removed.

Look up the SIC code

If a property company is incorporated, two SIC codes can be used:

  • Buy-to-let investing (buy-to-let investing, portfolio investing) uses the SIC code 68209
  • Using SIC code 68100 will help you buy, sell, and trade real estate.

For buy-to-let mortgage applications, you must choose the right SIC code.

Memorandum and articles of association

You have automatically created a memorandum of association when you register your company online, and it entails the initial shareholders confirming their agreement to form the company.

Articles of Association

A company’s Articles of Association contain a set of rules that define how the company operates, which have been agreed to by its shareholders, directors, and secretary.

How to Become a Property Sourcer?

Interested in becoming a property sourcer? A lucrative business model that doesn’t require a lot of money to start allows you to make money from property. The following steps will help you become a Birmingham property sourcer.

Experience in real estate is useful but not essential

No doubt having a background in the property will help you – but that is not a requirement. To stand out in the property market, you must be familiar with the market and know the right way to interact with people in the field.  

Networking skills

There is a lot to do with who you know in real estate. If you don’t have connections, it is impossible for you to source properties successfully.

Problem-solving skills

It’s always the same story: a client comes to you asking for help buying their first home or selling their existing one, and it’s up to you to fix it.

They can come to you with problems like finalizing the deals, legal issues of the property, and more. Being a property sourcer, it is your responsibility to solve such concerns.

Conclusion 

This is how you can set up your property-sourcing business. Among property sourcing companies, Pluxa Property stands out. 

We assist serious property investors in finding property and arranging deal packaging in the UK. With our extensive network of real estate agents, we find you the best deals across the country!

With years of experience working with many of the most successful property investors in the UK, we are a one-stop source for all property investment needs.

FAQs

What does a sourcing agent do?

An agent who sources property deals sells them to investors for a living. Property sourcers act as middlemen between buyers and sellers, smoothing out the deal and making it more convenient.

What services do you use for sourcing suppliers?

A property source assists investors in getting the best deals by going through several stages. A property is searched for, the market is understood, buyers are searched for, the formalities are completed, and the deal is closed.

How do I hire a sourcing agent to find a supplier?

Make sure the sourcing agent you choose can provide references from other companies. Check the websites of these references and speak with them. Learn how long the company has worked with the sourcing agent and what quality they provide. Get a recommendation from them about the sourcing agent.

Share:
Facebook
Twitter
Pinterest
LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Get Started

Don’t have any account yet? Create a New Account

Our Quantum 7 Secret Formula for How to make £10k Cashflow per Month

Even if you have no experience or money!