What to Look for in a Property Sourcer (And Red Flags to Avoid)

Property sourcing has grown into a significant industry. For investors who lack time, local knowledge, or deal flow, a good sourcer can be invaluable. But the sector is largely unregulated, and not all sourcers operate to the same standard.

After years in property - both as an investor and through my network at Samuel Leeds Academy and Deal Connect - I’ve seen excellent sourcers and terrible ones. Here’s how to tell the difference.

What Property Sourcers Actually Do

A property sourcer finds investment opportunities that match your criteria. Good sourcers typically:

• Access off-market properties through agent relationships and direct marketing
• Conduct initial due diligence on deals before presenting them
• Provide analysis including rental projections and yield calculations
• Connect you with solicitors, mortgage brokers, and other professionals
• Charge a fee (usually £3,000-£7,000) when a deal completes

The value proposition is straightforward: they do the legwork, you get access to deals you wouldn’t find on Rightmove.

Questions to Ask Before Working With a Sourcer

1. “What’s Your Background in Property?”

This matters more than most investors realise. A sourcer’s background shapes their expertise:

• Landlord/investor background: Understands operational reality, likely conservative on projections
• Estate agent background: Strong on valuations and agent relationships, may overestimate rental achievability
• Developer background: Good on refurbishment costs, may focus heavily on capital value
• Marketing/sales background: Polished presentation, needs scrutiny on technical details

There’s no wrong answer, but their background should align with the type of properties they source. Someone who’s never owned a rental probably shouldn’t be sourcing you a 10-bed HMO.

2. “Do You Invest in the Same Areas and Property Types?”

This is crucial. A sourcer who invests alongside their clients has alignment of interest. They:

• Know the real achievable rents (not estate agent optimism)
• Understand the operational challenges
• Have relationships with local tradespeople and letting agents
• Share your downside risk in market corrections

I only source deals in areas and property types where I have personal investment experience. That’s Kent HMOs, Brighton property, and London serviced apartments. If someone wants Sheffield multi-lets, I’d refer them to someone with Sheffield expertise.

3. “How Do You Find Your Deals?”

Legitimate deal flow comes from:

• Agent relationships: Local agents who call with opportunities before listing
• Direct-to-vendor marketing: Letters, leaflets, and targeted campaigns
• Network referrals: Other investors, developers, and professionals
• Auction monitoring: Pre-auction offers on suitable properties
• Existing portfolio owners: Landlords looking to sell quietly

Be wary of sourcers who are vague about their deal flow. If they’re just repackaging Rightmove listings with markup, you’re paying for no value.

4. “What’s Included in Your Due Diligence?”

A professional sourcer should provide:

• Comparable analysis: Recent sales of similar properties
• Rental analysis: Advertised and achieved rents for the area
• Refurbishment estimates: Even if rough, they should have a view
• Licensing research: HMO licensing requirements, Article 4 directions
• Local knowledge: Area dynamics, tenant profiles, demand drivers

If they’re just sending property particulars with “this looks good” commentary, that’s not sourcing - it’s forwarding.

5. “Can I Speak to Previous Clients?”

Any legitimate sourcer should have satisfied clients willing to provide references. Ask specifically about:

• Did projections match reality?
• Were there any surprises post-purchase?
• How responsive was the sourcer during the process?
• Would they use them again?

Red Flags That Suggest You Should Walk Away

Pressure Tactics

“This deal won’t last” or “I have three other investors waiting” might be true, but good deals don’t require high-pressure sales. If you feel rushed, step back.

Inflated Yield Claims

Be sceptical of projected yields significantly above local norms. If the area typically achieves 8% and someone’s showing you 14%, ask hard questions about how they’re calculating it.

No Personal Investment

Sourcers who’ve never invested themselves lack operational understanding. They may genuinely believe unrealistic projections because they’ve never managed a difficult tenant or unexpected repair bill.

Vague About Deal Flow

“I have contacts” isn’t a sourcing strategy. If they can’t articulate specifically how they find deals, they probably don’t have a sustainable approach.

Upfront Fees Before Viewing

Legitimate sourcers typically charge on completion. Some may require a small retainer for exclusive search services, but substantial upfront fees before you’ve even seen a property is unusual.

No Professional Network

Good sourcers have relationships with solicitors, mortgage brokers, and contractors. If they can’t recommend anyone in their supply chain, they’re probably operating in isolation.

What I Do Differently

Full transparency: I’m a property sourcer myself, so I have a perspective here. But I’d rather lose a potential client by being honest than gain one through misleading claims.

My approach:

• I only source in areas where I personally invest
• Every deal I recommend passes my own investment criteria
• I provide detailed analysis, not just particulars
• My fee is payable on completion, not before
• I have a network of professionals I’ve worked with repeatedly

The difference, I believe, is that sourcing is part of a broader service. I’m not just finding buildings - I’m bringing 20 years of digital marketing and property operations experience to every conversation.

How to Evaluate Any Sourcer

Before committing, I’d suggest:

1. Research their background: LinkedIn, company registration, property history
2. Request references: Speak to at least two previous clients
3. Verify their analysis: Cross-check rental projections with local agents
4. Understand their fee structure: No surprises on costs
5. Trust your instincts: If something feels off, it probably is

The best sourcer for you depends on your strategy, location preferences, and risk tolerance. Take time to find someone whose expertise matches your needs.

If Kent HMOs, Brighton property, or London serviced apartments are in your sights, let’s have a conversation. No pressure, no commitment - just an honest discussion about whether we’re a good fit.