The property sourcing industry continues to attract new entrants seeking financial independence and flexible working arrangements. However, many aspiring property sourcers and deal packagers are misled by unrealistic promises about quick profits and overnight success.
At NAPSA, we regularly receive enquiries from new agents asking whether they can genuinely make money property sourcing. The answer is yes — but the reality differs significantly from what many training companies promise. Understanding the true timeline, challenges, and earning potential is essential before starting your sourcing business.
We’ve included a video from our CEO, Tina Walsh explaining what it takes to make it, plus a comprehensive guide below outlining realistic income expectations, the time required to establish a profitable property sourcing operation, and practical steps to build a sustainable business in this competitive sector.
The Reality of Property Sourcing Timelines
There are two ways to provide sourcing services to property investors:
Property Sourcing
Property sourcing involves multiple stages that significantly impact your earning timeline:
- Finding and onboarding investors who match your target search areas and strategies
- Sourcing suitable deals that meet your investor’s specific requirements
- Securing investor agreement to proceed with the deal purchase
- Managing the transaction through to completion
Currently, the average time for a property transaction to complete is 200 days – as you can see in this recent Property Industry Eye article. This extended timeline means you could wait 3-6 months minimum before receiving your first completion fee, assuming everything proceeds smoothly.
Deal Packaging
Deal packaging follows a similar process with comparable timeframes:
- Identifying viable deals in your target area and strategy
- Connecting with suitable investors and completing onboarding (before sharing deal)
- Securing investor commitment to proceed with a deal
- Supporting the transaction through the completion process
The fundamental challenge remains the same: significant time investment before receiving payment.
Common Misconceptions About Sourcing Income
The “Quick Money” Myth
Many training companies claim agents can earn thousands within their first months of trading. This creates unrealistic expectations and leads to disappointment when new agents discover the reality. Especially when they’ve not only spent potentially thousands on training, registrations and insurance – only to find that they aren’t earning money straight away.
Our experience shows that most new sourcing agents take anywhere up to 12 months to secure their first completion fee. This isn’t because sourcing doesn’t work — it’s because building a successful property business requires time, just like any other business venture.
The Compliance Shortcut Claims
Similarly unrealistic are claims that agents can become fully compliant within a few days or even hours. Proper sourcing compliance involves extensive learning, document preparation, and process implementation. You will be dealing with large sums of cash – sourcing agents are regulated the same as estate agents. You need to understand exactly what you are doing. Attempting to rush this crucial foundation often leads to serious legal issues later.
A more realistic timeline would be setting up your sourcing business in 30-60 days, depending on how many hours you can assign to learning and document set up each day. It may not sound as exciting as getting set up to go “right now” but it will serve you much better in the long run.
Realistic Income Expectations
First-Year Challenges
During your first year, expect to invest significant time in:
- Building investor relationships and establishing trust
- Learning market dynamics in your chosen area
- Developing deal-sourcing skills and market knowledge
- Establishing compliant business processes
Many agents work part-time initially, which extends the timeline further. Consider realistically how many hours weekly you can dedicate to your sourcing business and when you’ll be available for investor calls and property viewings.
Long-Term Earning Potential
Despite the challenging start, successful property sourcing can generate substantial income. We have NAPSA members who have:
- Replaced their existing salaries
- Built six-figure businesses through consistent deal flow to allow them to invest themselves and further boost their income
- Developed multiple income streams including repeat investor relationships
The most successful agents typically possess:
- Previous property industry experience
- Strong networking and communication skills
- Established connections within the investment community
- Commitment to building long-term investor relationships
Building Your Sourcing Business Strategically
Start with Realistic Expectations
If you’re working full-time, honestly assess your available time commitment. Consider when you can take investor calls (many investors prefer daytime contact), visit properties, and manage deal progression.
Establish Upfront Income
Implement reservation or registration fees to generate some cash flow before completion. This provides essential income during the lengthy transaction periods and helps sustain your business during the establishment phase.
Focus on Relationship Building
Successful sourcing businesses are built on trust and long-term investor relationships. One satisfied investor can provide multiple deals over several years, creating sustainable income streams.
Investment in Proper Setup
Allocate sufficient time and resources for:
- Comprehensive compliance training and implementation
- Professional document preparation and business systems
- Market research and area specialisation
- Networking and relationship building
Special Considerations for Rent-to-Rent
Rent-to-rent strategies face additional challenges, with HMRC’s Anti-Money Laundering (AML) team currently reviewing client check requirements. The regulatory environment is becoming increasingly strict, with limited safeguards for agents operating in this space.
We advise particular caution with rent-to-rent sourcing until regulatory clarity emerges.
The Importance of Proper Training
Avoiding the “Sold a Dream” Trap
Unfortunately, many aspiring agents have been misled by unrealistic promises. The property sourcing industry can be highly rewarding, but success requires proper preparation, realistic expectations, and sustained effort.
Quality Training Investment
Before committing significant resources to training or business setup, thoroughly research what’s involved. Consider starting with low-cost introductory courses to understand the reality before making larger investments.
NAPSA offers a comprehensive free guide to property sourcing covering setup costs and requirements. We also provide an Introduction to Sourcing course for just £1, allowing you to explore the sector before making significant commitments.
Timeline Expectations for Different Scenarios
Part-Time Sourcing Agents
Working evenings and weekends typically extends your timeline to 12-18 months for first completion fees. Success depends on investor flexibility regarding communication times and your ability to view properties outside standard hours.
Full-Time Commitment
Dedicating full-time hours can potentially reduce the timeline to 6-9 months, though market conditions and deal availability significantly impacting results. You will be at an advantage, however this will also come down to self discipline in utilising the business time you have wisely. We work with sourcing agents through NAPSA to help them manage their time, by splitting their days into logical tasks to complete.
Experienced Property Professionals
Those with existing industry connections, such as previously in estate agency sector, lettings, or property investors themselves may achieve faster results, potentially securing deals within 3-6 months due to established networks and market knowledge.
Maximising Your Success Potential
Choose Your Niche Carefully
Specialising in specific property types, price ranges, or geographical areas helps establish expertise and makes investor matching more effective.
Investors will see straight through agents who source ‘everywhere’ or are offering deals for an area they’ve never even visited – make sure you know your ‘patch’ and thorough understand the strategies you are sourcing for. It could seriously damage your business reputation and credibility if you don’t!
Invest in Professional Development
Continuous learning about market trends, legal requirements, and investor preferences improves your service quality and deal conversion rates. Regulations change monthly and trends, interest rates and mortgage-ability change on a regular basis. Make sure you are clued up on your area and national level.
Build a Professional Network
Regular attendance at property networking events, online forums, and industry conferences expands your investor and deal source networks. You need to be getting yourself our there are connected with others – not just sourcing events, consider where property investors are likely to go in your area?
Maintain Compliance Standards
Professional compliance not only protects your business legally but also builds investor confidence and credibility in the marketplace. At NAPSA, we are more than aware of changes to legislation and regulations – we have to update our document packs each time changes are made.
NAPSA Members are kept up to date on changes through our community – it’s vitally important you know exactly what your responsibilities are as an agent from material information to anti-money laundering.
Planning Your Property Sourcing Business
Building a successful property sourcing business requires patience, professional standards, and realistic expectations. While the financial rewards can be substantial, they rarely materialise quickly.
Success comes from treating sourcing as a professional business venture requiring proper setup, ongoing investment, and sustained effort. Those who approach it with realistic timelines and professional standards are most likely to build profitable, sustainable operations.
Whether you’re exploring property sourcing as a career change or additional income stream, invest time in proper research and training before committing significant resources. The sector offers genuine opportunities for those prepared to build their business properly over time.
For comprehensive guidance on starting your property sourcing journey professionally, explore NAPSA’s free resources, Advice Hub, and introductory training designed to provide realistic insights without sales pressure.
