For example you can easily request £200 - £300 for every person you refer to your mortgage broker. Setting up this kind of referral rate with each professional will soon accumulate a sizeable deposit over 6-12 months.
Sourcing AgentSetting up a business as a sourcing agent has many advantages for a property investor. You will obtain valuable knowledge and contacts while sourcing properties for other people who have no time and few contacts of their own, giving you the necessary experience to eventually source your own properties.
A sourcing agent usually charges a reservation fee of approx £500 followed by a success fee on completion of anything ranging between 0.5% to 2% of the final purchase price. The success fee can be quite substantial as many properties are over £100,000. However, it is imperative to collect your success fee when contacts are exchanged which can be organised through your own solicitor.