Questions from a Newbie Wholesaler
So.. I've been working non-stop to learn everything I can about wholesaling.. Yesterday I created my first bandit signs to put out, but began to feel anxious about potential sellers calling. I know many new investors go through this phase. I pretty much know what to ask them about the property.. however, I get stuck (in my head) on how to position myself when they're getting ready to sign the contract. I've heard some wholesalers say Never tell them you're not actually purchasing the property & I've heard others say to just be honest. Honestly, being transparent makes me feel a lot better about it. On the other hand, I don't want to lose deals because of the reputation of wholesalers. Please Help!
Hi Michael,
Although I am new to wholesaling myself, I can say from my 10 years of sales that being transparent is the way to go. How you go about that is all up to how you Q&A your customer. You don't have to disclose your entire soul to them, but be legal and ethical.
With this in mind I would suggest not assuming what the potential customer believes about wholesalers. Be the problemsolver. If you can convey that you are the wholesaler/problemsolver, I think the seller will trust and be happy to sell to you.
Good luck!
I agree with Adam. If you go into this knowing inside of yourself that you are doing these people a justice by helping them get this distressed property off of their hands then the "wholesaler reputation" is irrelevant. Be transparent about the fact that this is what you are doing for a source of income but dont worry about anything else. If they are suspicious of wholesalers then you wont get the deal anyway and you move on to the next lead lol.
Thanks for replying Guys. I came across some information today that kinda put me at a halt. Soo.. I was under the assumption that you don't need a license to wholesale. Today, I heard that a wholesaler is operating illegally as a broker if he doesn't have a RE license.. that's a bit scary lol. Do you guys recommend getting a license just to be safe? If not, what are the guide lines on wholesaling legally? Should I write another forum for this question?
Hey Michael, I'm getting into wholesaling myself and had many of these same questions. Take a look at this video, it describes the stipulations quite well and definitely helped me out.
https://www.youtube.com/watch?v=FiNKrTDdpBU
As far as my situation goes, I'm getting a license and am planning on being an agent-investor. It takes a bit of time and money (depending on state residency) but I think there are a myriad of benefits to it. Hope this helps!
Thanks a lot. Congrats! & Wish you luck on your investing journey William!