These tips fit almost any self-starting entrepreneur. If you are wholesaling real estate, you are an entrepreneur, whether you think so or not. As any sport or industry you are in, the only way to succeed is to have passion, discipline, and humility.
If you are not structuring your days or having some sort of tracking system for your activities, you won’t succeed. Why? Because too many times you can get caught up in the little issues that don’t pay. When wholesaling real estate, you will have to talk to buyers, sellers, attorneys, design campaigns, hire out services, etc… and you will need to organize each part into small daily chunks. I suggest the first chapter of Chet Holmes’ “The Ultimate Sales Machine”. Basically get the top 5 most important items you need to do, and do them first each day. Follow through, and do your best to not skip a task!
Wholesaling real estate requires you learn a few things, perfectly. Negotiating, real estate law, marketing, are all different areas of your business you will need to constantly be reading about and getting better at. Not only reading, but implementing what you learn is vital. Negotiating a contract with a seller can be a tough situation and saying the wrong things will hurt your chance of being able to get a contract. Take at least 1 hour a day to read or review something for your business. Wholesaling can be very difficult if you don’t hone your skills and try to get better.
Although this may seem like a silly tip to advise others on, you would be surprised. What happens the minute you have to do a $2,000 dollar direct mail campaign? Most people don’t do it because they feel like they are going to “lose” that money. Pushing your limits and driving through fears will help you reach any goal. Hiring your first assistant may be the most daunting task, but if you are driven, you will bite your lip and say, “screw it”. Many wholesalers come and go because they lose their drive and don’t push themselves enough!
This tip goes along with education. If you come in thinking you’re the hottest wholesaler in your city, yet have never done a deal, it will be hard for you to take advice and grow. Wholesaling houses for a profit may look easy and fun at the seminars, but in practice, it takes time and patience for things to click together. You must leave an ego at the door and have an almost childlike attitude when starting. You are not dumb or wrong for making bad offers, just young. Don’t take any comments from a buyer or seller to heart, and have the humility to take it in stride. Also, when you do cut your first big checks, enjoy it but don’t think you are done yet!
This basically ties everything together. You will want to stay on task and complete all your to-do’s on a weekly basis. Making a cash offer on a house for 15K when the seller wants 50K may be a nervous thing for most, but if you just keep at it and you have studied your market, you won’t break a sweat! Confidence will grow and the deals will come!!
Make sure you put up 20 ads or so a week. Craigslist lists or back page the ads based on the date they were posted so the later the day goes, the farther down on the page your ad will show. Make sure you post ads in the morning and in the afternoon. Friday and Saturdays are the best for some odd reason.
Your headline is high end real estate. When an investor or potential buyer goes onto craigslist and looks up property in the “real estate” tab, they might use keywords in the search bar to narrow down the number of ads. By placing the words wholesale and investment on the headline, you will draw more attention from the search tools.
8. Un-Spam it Yourself
Never have a link back to your email, or an anonymous link. Just put a phone number along with a link to your website. When posting ads for wholesale real estate I get a lot of lame marketing attempts of no-name websites trying to get me to post my deal on their site. By limiting the ways people get a hold of you, you control the flow and filter the spammers.
Put your websites name inside the city box next to the headline. If someone does a search for wholesale deals in their city and up comes 30 different ads, yet 10 of those say your website, you will get people going to the site just to check it out. Its very important that you make yourself stand out, even this little bit helps go a long way.
10. Picture This
Having a picture whose root file name is cash buyers or wholesale deals, will help you in many ways. First of all, nobody wants to see an ad for a wholesale deal with out a picture. Its one less thing they can filter out. Also if you name your picture wholesale deals or cash buyers, when someone google’s images for wholesale deals or cash buyers in your city, your image will come up in the top search. That’s a quick ninja tip.
11. Always collect an earnest money deposit from your end buyer
When I was just getting started, I was nervous about asking my buyers for an earnest money deposit. I learned the hard way that it’s much easier for someone to back out of a deal if they have no skin in the game, so I started collecting a 2k non-refundable earnest deposit on every deal I sold. No exceptions!
12. Never accept a personal check as an earnest money deposit from a new buyer
This is another lesson that I learned the hard way- not once, but twice! Fortunately, I got the message the second time around, and now I require my buyer’s earnest money deposits to be in the form of a cashier’s check or money order.
13. Always follow up with sellers, even if they flat-out reject your offer
Whether you’re dealing with a private seller or an REO, there is no telling when their level of motivation will change from low to high, so it’s important to keep following up every 30 days or so to see if they’ve had a change of heart. I’ve gotten some of my best deals from sellers who have rejected my offers multiple times before finally dropping their price to what I was offering.
14. If you want to close deals and get paid, you have to make offers
I know this one might sound obvious, but it took me longer than I’d like to admit to come to the realization that I was actually going to have to make offers if I wanted to make any money as a wholesaler. I would spend hours and hours researching properties, and then trying to guess what the seller’s response would be. Most times I would convince myself that they were going to say “NO!” so I would never bother to make an offer. Eventually I got tired of being broke, and so I decided to start making offers on every single property I looked at. It wasn’t too long after making that decision that I also started closing deals and cashing checks!
15. Don’t count your chickens before they hatch
Unfortunately, every deal that you put under contract is not going to make it to the closing table. As a matter of fact, I’ve had deals fall apart at the closing table, when I was so close to getting paid I could taste it. There are a myriad of things that can make your deal go up in flames, so do yourself a favor, and don’t go spending your profits until the deal is actually closed!
Take time to think about all these tips because with out these pieces, you will just flail around and fall and/or quit before any real result!
Hopefully you will find these tips useful in your own wholesaling business, and they will help you to avoid some of the mistakes that can be made in the wholesaling business !
USA WholeSale Real-Estate