Characteristics of a "GOOD" Wholesaler - Do you have these?

As investors we seek every avenue to find leads. We do direct mail, driving for dollars, blast out emails to our contacts, use facebook, etc. One avenue that could be very profitable is thru the help of a “good” wholesaler.

A “good” wholesaler can definitely help you increase your bottom line. The wholesaler is pretty much your boots on the ground. Wholesalers definitely can save you a ton of time and time is gold. So, what are the characteristics of a “good” wholesaler? Below is a list of some characteristics one should possess if you want to be a good wholesaler.

• Understand the numbers – This means that the wholesaler knows how to calculate the numbers just like an investor would. This is very important. Savvy investors WILL check the numbers. The wholesaler should NOT try to fib on this part. Savvy investors WILL always check and double check the numbers. Part of the due diligence is verifying all the data presented. The numbers need to make sense.
• Understand the market – Knowing the farm area will help the wholesaler with his/her calculations before presenting it to investors. GUESSING is not a good thing. Learn the area and really study what is going on in the market.
• Good presentation – A “good” wholesaler knows how to present the deal in an easy read format. The wholesaler should avoid HYPE words (savvy investors know what those are) about the deal. Let the numbers speak for itself and present the info in a professional manner.
• Honorable – Being a person of integrity is important. Possess this. When a wholesaler has integrity, the word will get around and more deals will be made.
• Be responsive – A “good” wholesaler is responsive to inquiries. It is a two way process when trying to close on a deal. The wholesaler presents the info, the investor could have questions and will ask them. The wholesaler should respond promptly or that possible sale will be lost.
• Is about the WIN-WIN – The business of real estate is about building great relationships. If the wholesaler is only about his/her bottom line, that person will not make as much as one that cares about both side wining. Instead of insisting on a $7K assignment fee, if the deal will close if the fee is reduced to $5K, do it. It is about getting the deal done.
• Understand Repair costs – This is an important factor. Many do not understand how to assign a number to the repairs. Granted this cannot be EXACT however it is important to know what the repairs will cost when you present that data to investors. Savvy investors will check this number. The wholesaler’s number and investors’ number will not be exact however they should be in the same ballpark. There is a price difference if the property in question will be a rental as opposed to a flip. The location of the property has an impact on this number plus the type of materials the investor will use. So it is good to know the repair costs (factor in several factors that could affect this number).
• Will go the extra mile – This ties into the WIN-WIN above. Sometimes it will take a little more effort to make a deal work. It does happen. A “good” wholesaler will do what he/she can to make it work.

This is not an all-inclusive list. I am sure others could add more to this list. I personally the items in the list above are important.

My tip to those who want to be a “good” wholesaler, get some education behind you. Biggerpockets.com is one of the best sources out there to get educated for FREE. Read the articles and blogs on this topic. Join your local real estate investment group. Find a mentor, one who is wholesaling in your area. Do what you can to be a knowledgeable wholesaler. It will do you a lot of good. You will close more deals with many investors

Happy investing