WHAT IS SOURCING IN REAL ESTATE?

No matter the industry, sourcing or business development is crucial for a business’ sustenance and growth. A strategic sourcing approach can accelerate the growth of an enterprise and really take it to the next level. Let us now understand what it really means in a nutshell.

Simply put, it is a process that consists of searching, comparing and evaluating several potential partners, in order to select the most suitable ones. It is simply looking for potential opportunities by extensively searching the market and weeding out those that aren’t.

In real estate, sourcing would mean finding properties that make the most sense for you - with regards to unit price, size, location and other factors that help determine its alignment with your business plan. The aim of this meticulous search is to obtain better knowledge and then define your specifications -  so you can focus your attention on the right deals. This step in sourcing cannot be neglected - eventually finding a property that fits your requirements, means that you must first set clear metrics to define what you’re looking for. This could also entail comparing prices quoted by the property owner to prevailing market prices and hence calls for intensive research. 

Like someone rightly said - ‘Your network is your net-worth’. Real estate is a business based on relationships. To effectively source deals you might need to actively establish and maintain relationships that would help you.

Successfully sourcing requires one to not limit themselves to one method for sourcing deals. They must combine a number of different techniques to achieve steady deal flow and consistent sourcing opportunities. Consistently sourcing real estate deals that translate to profits take enormous amounts of effort, systemization, and dedication - but it’s worth it in the end!