1. Not Vetting the Sourcer Properly

Too many investors jump in based on a flashy Instagram or a referral from a friend. But not all sourcers are created equal.

✅ What to do instead:

Ask for past deals, investor testimonials, company registration, and clarity on how they source their opportunities. A good sourcer will welcome the questions.

2. Focusing Only on the Finder’s Fee

Yes, you’re paying a few grand – but that’s not the real cost. The bigger question is: what’s the deal worth?

❌ Saving £500 on fees but missing out on £30k in long-term ROI is bad maths.

✅ What to do instead:

Judge the value, not just the price. Good sourcing pays for itself.

3. Not Understanding the Numbers

Some investors take the sourcer’s word as gospel – then realise too late that the refurb is underestimated or the yield is based on best-case scenarios.

✅ What to do instead:

Ask for full breakdowns. Do your own basic due diligence. If you don’t understand the deal pack, ask.

4. Expecting Passive Perfection

A sourcer isn’t a miracle worker – they can’t guarantee zero voids, perfect tenants, or that everything will go 100% to plan.

✅ What to do instead:

Understand that every deal carries risk. Your sourcer should minimise it – but not magically remove it.

5. Poor Communication

This goes both ways. Investors sometimes go quiet after receiving a deal. Or sourcers don’t keep clients updated.

✅ What to do instead:

Set expectations early. Agree how you’ll communicate, how quickly you’ll respond, and how updates will be shared.

Final Thought

A great sourcer can be your secret weapon – but only if you avoid these common mistakes. Stay informed, stay involved, and pick your partners carefully.