Wholesaling is probably one of the easiest, yet most deceiving aspects of Real Estate out there. There is no shortage of people sharing how to be a wholesaler from online courses to packages to free videos. When looking at all the information available on the subject, how does one know which information is correct (including this article)?
As someone who has run a wholesale group in our market now for over four years, I am going to share with you the qualities required to be in my opinion a successful wholesaler. Our team has the privilege of being well connected and knowing most of them in our market. Having wholesaled tons of properties and observed others doing the same, here are the qualities you will want to have to be a successful wholesaler.
Find quality training and pay for it
I am a fan of paid training. You get what you pay for is oftentimes the truth. While there is nothing wrong with ‘free’ training online, there is a lot of conflicting information. There is also a lot of information everyone assumes is for them when in fact, it is market specific. Most wholesalers only work one market so they don’t consider this when they post their free videos. Quality paid training will discuss not just each phase of the process in detail. It should also cover the psychology of every step of the process. Also the legal aspects in detail. If you aren’t getting the whole package covered, return the training and get something different.
Surround yourself with consistent performers and offer value
A common problem I see with less experienced wholesalers is they surround themselves with people like them rather than high level performers. Why? Because they are most comfortable with those like them. It’s human nature. Except it doesn’t really help your game more often than not. You have to get around the wholesalers who are ‘killing it’. Network with them. Learn from them.
You have to meet everyone! Buyers, Sellers, Agents, Attorneys and so forth. Do not limit yourself. Sure you can have your ‘go to’ people that you develop relationships with but always network and stay on everyone’s radar. Do not let this simple point slide. Most people hugely underestimate the power of networking. Get out there and meet everyone you can and ensure everyone knows what you do.
Offer value when networking
Do not, I repeat, do not ask a high level performer to go to lunch to ‘pick their brain’. That is a sure turn off for almost every high level player I know. We don’t have time for our brains to be picked. Bring value to the table first and then an exchange of value can occur that will be much more fruitful for everyone. Keep in mind, value does not have to be real estate related. I recently got a photography session done for my team in exchange for some real estate value. Most wholesalers were good at something else before real estate. Think of what you are good at and offer it up as a possible exchange of value.
Leads are the life blood of a wholesale operation. Before you are a real estate investor, you are a marketer. So study the subject of marketing. Learn from different types of marketers. Marketing is a creative art and there are no shortage of thoughts on how to do it effectively. Your goal is to learn the art and then tailor it for your market. Keep in mind your market most likely has submarkets and a different message is needed for each sub market.
Learn your market and submarkets
Every market is different with its own subtle nuances. Each market has agents who are market experts to help you learn these differences. Your job is to learn this market so when you go to get deals, you know what an actual deal looks like in the first place. The number one complaint about wholesalers is they send Buyers ‘deals’ that are not even close to a deal. In my experience, it’s because the wholesaler doesn’t really know the market. Study your market and learn it piece by piece. Don’t try to learn an entire market with submarkets in one shot. That’s doing things the hard way. Start with one submarket and build from there.
Learn about repairs
Most wholesalers would make their life much simpler if they simply paid a contractor $100 per walk through a few times to learn what kind of repairs a house really needs. The number two complaint of wholesaler deals is unrealistic repair costs. And 99% of the time, the repair estimate is too low. Learn what repairs really cost. Network with successful rehabbers and learn from them. Successful rehabbers have done a ton of deals, not just one or two or three. Or even better, do a high quality rehab yourself so you can feel the rehabbers pain in full. It will make you a much better wholesaler.
I conclude with this point because I have seen all the trainings. Exotic cars, beaches, boats, whatever whets your appetite to jump in. I can almost guarantee you will not own any of those things within 30 days. J Wholesaling is hard work. But it can get you to what you ultimately want which may include those beautiful teaser items in the course marketing. The key is to work hard, oftentimes very, very hard with laser sharp focus. If you have ever seen a laser beam, it does not deviate. Such is how your focus needs to be. Wholesaling is a trade and like any other trade you must learn the skills. They take time to learn and refine. Push yourself but stay focused until successful.
You must have the utmost of integrity in this business. If you cheat here, it will come back to haunt you. The old phrase ‘what comes around goes around’ is all too true and the wholesale business is a niche business. Do not let the ‘almighty dollar’ blind you to the point where you make unethical choices. It is not worth it. Ever. When all is said and done, money comes and goes but your integrity is all you have. Guard it with the highest level of intensity. It will serve you better than any one deal ever will.
Being a wholesaler is very rewarding when done well. It is imperative, that you understand that there really are wrong ways to go about it that can cause a lot of grief. Not just for yourself but for other wholesalers, Sellers, Buyers and so forth. Do not get caught up in online video or social media hype. It is a fun business but it is hard work. One of my mentors has done more deals than probably anyone on the planet from $5000 to nine digit deals. He still hustles as good as anyone out there because he loves the game. And because of that, he is ultra, ultra successful. The life of a real Real Estate Investor requires hard work and no one is going to hand you anything. It’s up to you to make it happen. Now go do it!