{"id":82383,"date":"2016-11-09T11:15:21","date_gmt":"2016-11-09T18:15:21","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=82383"},"modified":"2021-03-16T12:13:50","modified_gmt":"2021-03-16T18:13:50","slug":"become-a-reputable-wholesaler","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/become-a-reputable-wholesaler","title":{"rendered":"How to Become a Highly Reputable Wholesaler Investors Love to Work With"},"content":{"rendered":"

In this post-crash era of real estate, the markets are hotter than they\u2019ve ever been. In a good market, everyone wants to ride the wave. During times like these, it\u2019s difficult to find a reputable wholesaler. So let\u2019s discuss how to be the reputable wholesaler every buyer in your market will be looking to do deals with.<\/p>\n

Reputation<\/h2>\n

Your reputation can be a major advantage or a major disadvantage when wholesaling<\/a>. No matter how small or large your market is, the real estate community is a very small, intimate group. When doing deals consistently, your name begins to become known, and those who are major players know who to work with and who not to work with. Your reputation as a company or as an individual can push you further along your journey or it can limit your growth.<\/p>\n

You may think some things\u00a0are insignificant, but they could\u00a0hurt your business’s\u00a0reputation and image. One thing that can be a challenge at times as a wholesaler is estimating the ARV and the rehab cost. Although these two variables are critical in making the decision on price point, they can be manipulated to show an increased or decreased valuation of a property. I bring this up because in competitive markets, investors try and make their deals look better than what they actually are. This can quickly ruin your reputation, and you will be considered the guy\/gal who\u00a0always overestimates the ARV or underestimates the rehab cost.
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\nRelated:<\/strong> 4 Ways to Generate New Wholesaling Leads That Actually Work<\/a><\/em><\/p>\n

I was recently talking with a major buyer of mine, and in the conversation, a person\u2019s name came up and my buyer immediately stated, \u201cI unsubscribed from their email list because they\u00a0always overvalue their properties.\u201d This is unfortunate, but again, if you gain a bad reputation, you will not be in business long.<\/p>\n

\"wholesaling-tools\"<\/p>\n

Deal Analysis<\/h2>\n

It\u2019s important to focus on deal analysis<\/a> because, as stated previously, it\u2019s easy to get a bad reputation, and this can come from continuous errors in valuing deals. I\u2019ve witnessed newbies especially making this mistake when getting started. I faced this same challenge, but with continuous practice, I was able to get better at it. I didn\u2019t ruin my reputation by sending bad deals to my buyers. Instead, I would have someone more experienced review my numbers. It\u2019s important to have someone to help you along the way.<\/p>\n

It’s vital to know the market you are in and what constitutes a good deal. In many competitive markets, finding the traditional deal structure of 70% of ARV \u2013 Repair \u2013 Fee = Max Offer<\/em> is difficult to find, so as the market shifts and swings, you have to be cognizant of where your market is and what you can bring to the marketplace. Being uninformed can create huge mistakes when getting properties under contract. I learned this lesson personally, and I talked about it in a prior post, “How a Lack of Confidence in My Real Estate Calculations Just Cost Me $25k<\/a>.”<\/p>\n

Related:<\/strong> How to Master the Most Important Skill in Wholesaling \u2014 Talking With Sellers<\/a><\/em><\/p>\n

Integrity<\/h2>\n

Discussing integrity may seem obvious, but some investors view the market through the lens of scarcity. This view point of scarcity (there\u2019s not enough deals) can easily break down a person\u2019s moral compass. What a person never imagined they would do tends to become acceptable in their eyes. By keeping your integrity, you will be able to have and keep a good reputation, you will be able to maintain solid buyers, and you will be able still get deals under contract.<\/p>\n

\"honest-wholesale\"<\/p>\n

Conclusion<\/h2>\n

In this increasing real estate industry, there a lot of newbies entering the marketplace because they believe this is the easiest way to make money. They fail to understand there is a natural progression to being a reputable wholesaler. By taking time to develop your reputation, understanding your market, and using integrity in every decision, you will be able to become the go-to wholesaler for your city. There are those that will have brief success by being crafty and underhanded, but they will not have any longevity. So be the wholesaler with the good reputation who\u00a0can provide good deals to your buyers, and you will see tremendous success.<\/p>\n

Wholesalers: Any tips you’d add to this article?<\/em><\/p>\n

Let me know how you build a great reputation within your market!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

If you’re a wholesaler, your reputation and connections are worth their weight in gold. Build a name for yourself by following these tips.<\/p>\n","protected":false},"author":1580,"featured_media":82399,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5526],"tags":[],"class_list":["post-82383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-wholesaling"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/82383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1580"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=82383"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/82383\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/82399"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=82383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=82383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=82383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}