5 Pieces of Advice for Newbie Wholesalers

Wholesaling Real Estate – Expectations

About a month ago I had a conversation with a fellow wholesaler in Chicago who finally cleared his first deal and is on the path to successfully do about 3-4 this summer. If you think about it, if the deals average 3K a pop, that is 10K! Not bad side gig eh? However, the reality is that I have known of this wholesaler, who wants to remain anonymous, and while he is on a roll now, it took him almost a year and a half to line up all his ducks.

What does this mean for you? I was able to do a phone interview ad get some tips from a new wholesaler who did his first deal.

Stay the Course – When you begin wholesaling real estate it is going to feel like you will be spinning your wheels a lot. The truth is that you are always building connections and trust with both buyers and sellers, which means you just have to listen. Not every lead is a deal and not every buyer is telling you the truth, but if you go through enough of both, you will eventually find a property and a buyer who will agree to your terms. However, there will be days, weeks, maybe months before you see a dollar come in from your hard work, so do not give up!

Schedule Your Time Accordingly  – If you are going to wholesale houses and you have a full time job, you must know your schedule and make time accordingly. When speaking to the new wholesaler a year ago, that was his biggest complaint – time. However after keeping in touch for a while and getting to know more about what his schedule looked like, he worked around it and scheduled his time to fit in about 5 hours a week. Can you find 5 hours? Nobody is THAT busy, Not even Octomom!

Keep Adding Buyers – Believe it or not, many who call you and tell you they are buyers are full of it! This does not mean you brush them off, you have to take each call serious and figure it out for yourself. Do not get stuck on the first person who tells you they are a buyer, just keep their contact information and follow up as you said you would. If they cant provide proof of funds or addresses from previous purchases, they might either be full of it or a snob – which is your call. Snobs have cash and buy too!

No Money? – Grind – So you want to wholesale because you just went to a Fortune Builders event, but do not have a dime to your name? No problem, neither did the wholesaler I am referring to. What he did was simply go slowly, start calling agents and connecting to investors via the phone, and making letters and sending them out by hand. It took time, but eventually it helped him learn a lot about marketing in the process. However you can speed up your learning curve by paying for leads and coaching.

Get Help! – This advice is generally for anyone interested in doing something that is out of their comfort zone. They want to lose weight, wholesale, build a car, etc… You cannot do this by yourself and if you try, you have the odds stacked against you and you may fail. However, when speaking with the newbie wholesaler, I learned that he had been acquiring knowledge piece by piece from different people in the business. I met with him a while ago and he definitely seemed eager to learn and took notes when we talked. Also, every one he came across, he asked for help! Literally, just asked! It has done wonders for his confidence and business!

 

 

Tags: , , , ,

Sorry, comments for this entry are closed at this time.