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Posted about 8 years ago

Mind Hacks That Will Increase Your Wholesaling Income 1000%

When I first got into wholesaling I had the mindset of a Realtor. I didn't realize this type of mindset was killing my conversion rate on deals, as well eating up my profit margins. I would get a house on contract then assign the deal over to an investor. My mindset was get as many deals as you can, and assign the deal as fast as you can.

I totally ignored the common denominators of a wholesale deal which were

RULE #1. You make your money on the deal when you start negotiating the seller, NOT when you wholesale the deal to the investor.

RULE #2. Determine your exit strategy before you even officially contract the deal. 

(Confession Alert:) For some reason, I guess I was so rooted into my old way of thinking, it took my mind some time to grasp this concept, so even though I thought I understood this, my next deals proved that FALSE! I did it again. Damn It ! Sabrina. You didn't negotiate this deal low enough with the seller, because your mind was so focus on getting the deal, getting the deal. 

I violated RULE #1 again. So when it came time to sell the property to an investor, who was a shark investor with negotiation skills like Donald Trump. I had to pay for my mistake, he negotiated me down about $5K, I had very little time to close this deal because my contract was expiring. Most of the other investors came in or around the same offer. Time was ticking so I accepted the offer. 

WHO WON IN THIS DEAL?

Mr.Seller got more money than he expected because I was focused on getting the deal, rather than in the mindset of RULE #1. I make my money when I start negotiating the seller, not when I sell to the investor.

Mr. Investor got the price he wanted $5K down off the asking price. Had I negotiated the seller in the right mindset I could have potentially made $5K more on the deal. The investor would have been happy as well because I would at least had enough cushion/spread or wiggle room to negotiate a bit with the investor. Yes, the seller would have had less profits, but in his situation it was make a deal or get nothing at all.

If you can grasp this understanding, your income will drastically increase guaranteed, if you fail like I did, you will leave money on the table every time.  

RULE #2. Determine your exit strategy before you even officially contract the deal.

In my next blog post "Don't Exit Through a Revolving Door" I'll tell you how I lost a half a Million Dollar deal because I violated Rule #2.  

Until next time stay focused, humble, and true to yourself. 

Sabrina Taylor

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Comments (7)

  1. Donny Smisth

    Sabrina, This is and awesome story. I am a newbie and had the same mindset as you relative to rule #1. However, you have open my eyes. Thanks!


  2. Great pointers! Thanks for sharing your knowledge and appreciate your humility for sharing your fails. About to read part 2.

    Thanks!

    Santos


  3. PART 2:  Of this Blog Post is Published 


  4. Great post, Sabrina, thank you.

    In this post you pointed out how both the seller and the investor won but you failed. I would disagree: You "paid" for an out-of-the-classroom lesson that will change your life... you'll always remember it, you'll never do it again, and EVERY SINGLE DEAL will be more profitable for you because of it. This deal may not have put money into your pocket but I think you still came out ahead of where you were!


    1. You are so right @Kent . Had to pay the price. You know thats how it goes in real estate. This is a bump your head and learn type industry. Even though the process is the same for a transaction ITS ALWAYS elements and events that happen in between time that take you on a ride. Thank you for reading @Kent and being part of the industry providing value. Kudos to you !

  5. awesome post Sabrina, I want rule number 2 now! lol :) 


    1. @Noe Thank you kindly, I'll be posting the part 2 between Saturday and Monday, I'll leave a comment here with the link soon as its posted. 

      Thank you for taking the time to read my post.