This is the fourth episode in our special Q & A Series. We look at the steps you need to go through when setting up your property sourcing business.
Mark: So Nick says, “Would you get business step up properly before starting the actual sourcing?” So this is really good, now I have actually being asked this more than once and it's reassuring that people are actually concerned about setting up properly I can tell you that there are a lot of resources out there that aren’t selling properly, they are still sourcing deals, and packaging and making money, so it's a great question and it's nice to, with massive promoting of ethical sourcing. So it’s a great question to ask and now I am going to answer it in a way that -- just couldn't make it, contradicted myself. But, what I would say is without leads and then subsequently deals you haven’t got a business. So in effect what I am saying there is, get cracking with your marketing and your lead generation.
All of the elements of a sourcing business are based around advice and professional indemnity insurance, the ombudsman services to protect people versus complaints, if they want to raise a complaint against your service. And anti-money laundering is all based on the money buying the property, laundering money, etc. So all of these things happen when you find that first deal. So needless to say without the leads, without the initial conversation, you haven’t really got a business.
So what I would say Nick is, and I am not saying don’t get the business set up properly, what I am saying is get cracking with your marketing and lead generation, and then as you start speaking with property owners you could start getting things in place such as your insurance and ombudsman membership. And once you have your 1st deal secured, what you are going to do then is you're going get registered with HMRC for anti-money laundering and then you are going to find a buyer, so again, because you’re dealing with potential cause of cash you have to be confident that money isn’t dirty etc.
They got huge guidance and there is a whole website based on anti-money laundering, so my advice in a nutshell Nick is don’t let the business set-up slow you down from starting your lead generation, get out there and start generating leads; start speaking with people but very quickly get things set up properly. So it doesn’t cost as much as people might think, so if you are paying your insurance monthly and then you get the ombudsman set-up and you get your anti-money laundering, you probably not going to spend much more than maybe between 300-500 pounds just to get your business set up which is for a lot of businesses is unbelievable really to get a business set up for 500 pounds when it can make you so much money and that don’t let it stop you from getting and generating money anyway.