Wholesaling. Might be harder than I thought.

12 Replies

From what I have been reading a lot of newbies gravitate towards Wholesaling.  I am certainly a newbie real estate investor.  The whole reason I am here is because a read an ebook on wholesaling that i got free access to on my local library's webpage.   After reading different things on here and the webinar on Thursday night about wholesaling, I think it might actually be harder than a lot of newbies might think.  And certainly harder than the "gurus" tell you it is.

That being said, harder doesn't mean impossible.  It just means you might need to spend more time learning, networking, building capital, etc.  At least that's the vibe I have been getting from most of what I have read here on the BP forums.

So will I still gravitate towards wholesaling?  Honestly, I don't know.  I don't think I have enough information just yet to choose which niche in real estate investing would fit me best in the market that I am in.  I think am way to new to say that I am definitely going to be a wholesaler, or a flipper, or a buy and holder.

My first goal is to really just start making friends with people in the real estate world.  Hang out with them, learn from them.  Maybe I even get to go walk some houses or something.

I'm finding out that this is definitely a marathon not a sprint.  So I'm not quitting my day job (unless somebody wants to pay my bills for me...lol).  I'm not going to spend a ton of money on TV infomercial "guru" crap.  I'm going to just take it step by step and day by day.  I'm going to be diligent in learning and meeting people that are successful.  

So I think from one newbie to other newbies out there.  Concentrate on learning and networking (aka meeting people).  The rest...the deals, the money, and the success will follow.  

*If I'm completely off base somebody please correct me...lol

**What are YOUR two most important things a newbie should do when they are just starting out?

-Greg Odom

@Greg Odom welcome to the BP community. It looks like you have a solid path laid out for yourself, one thing to consider is getting involved with a local BP meetup, or a REIA group, but as has been mentioned the REIA groups can cost and they may want to sell something. All the best on your chosen niche.

318‑570‑2938 | http://homeplanpros.com

Aleast you are not paying thousands to gurus for the simple truth, wholesaling is much harder than gurus potray

@Greg Odom  at least you learned this without spending thousands. If you need the voice of experience let me know, I would be glad to chat to you.

Hey man you have great realistic outlook towards beginning in RE.  

Wholesaling is a lot harder than gurus make it out to be.  Also people just think that they will start doing deals and then they can quit their job. Not always true nor very smart. You have the right idea, keep your job, study, network and save. Go tour houses, talk with buyers and sellers and grow organically in your real estate career. Things will become clearer and you will fall into what fits best for you naturally.

Originally posted by @Greg Odom :

From what I have been reading a lot of newbies gravitate towards Wholesaling.  I am certainly a newbie real estate investor.  The whole reason I am here is because a read an ebook on wholesaling that i got free access to on my local library's webpage.   After reading different things on here and the webinar on Thursday night about wholesaling, I think it might actually be harder than a lot of newbies might think.  And certainly harder than the "gurus" tell you it is.....*If I'm completely off base somebody please correct me...lol

**What are YOUR two most important things a newbie should do when they are just starting out?

-Greg Odom

Hey Greg! 

You know, that is a great observation... here's what I tell myself when I think about stuff like that.

"If it were easy, everyone would do it, and there would be no money in it."

The truth is, while a lot of "newbies" gravitate towards Wholesaling because it is the easiest way to get involved in Real Estate investing; they are seldom taught the sales skills necessary to know what to do.

At the end of the day, this is a sales business.  To answer your question as succinctly as possible, my two suggestions that are the most important things a newbie should do are these.

1.  Learn Sales Skills.  

Without learning the "Five Core Competencies" (Lead Generation, Lead Followup, Prequalification, and Closing Skills), you are already at a disadvantage.  Most "guru's" teach Marketing.  Not Sales.  

When you are new, you are not as confident as you could be.  Fear causes you to "not do" the things that you know will get you business.  For example, calling For Sale By Owners, For Rent By Owners, Expired Listings, Cancelled Listings, Door knocking Notice of Defaults, etc.  is virtually impossible for the newer practitioner (aka. "newbie").  

Why?  Not because he is scared, it's because you don't know what to say! 

When you learn what to say, the fear goes away.  

So for a newer practitioner, I would say it is critical that you learn sales skills.

2.  Take Action!

One of the very best things about wholesaling is that it is virtually impossible to screw up if you understand a few basics.  You have an inspection period, and if it isn't what you want it to be, cancel! 

You will never get paid reading a book.  The only thing that has any value is a signed contract.  Therefore, devote 75% of your available time to completing the 5 Core Competencies and take action!

*** Additionally, the best Rehabbers, and Landlords I know are also great wholesalers.... it's not a "beginning step".  It is just another niche... Get awesome at finding a great deal in your town and you will never be without a friend in need.

Some basic thoughts about wholesaling for the new...

a.  The Seller's Motivation must be at the highest level possible.  A useful question to use to determine their motivation is "What happens if it doesn't sell?"

b.  The closer you act like a real buyer does, and less like an investor, you will get more deals done.  Avoid the trap of "push button" wholesaling.

c.  Price fixes everything.

d.  Those who control the Inventory, control the market.

e.  If you get a property under contract, the buyers will follow.

f.  If you aren't getting any action on your property for sale, the price is too high.

g. No matter what, fail forward faster! 

Hope that helps, and sorry for the long post!

Have a Powerful Sales Day! 

I feel the same way. I'm still learling and trying to feel out all of the niches trying to figure out which fIts my strengths. 

@Karl Krentzel Wow!  Thanks for the insight Karl!  Luckily I do have some sales experience in my current job as a leasing agent.  I work for a property management company that manages multi-family communities.  I was even a "floater" for awhile because I was good at going to any of the 12 properties that run here in town and could sign leases.  I think that selling apartments and selling real estate are not to far off from each other.  Except when I sell real estate I will make A LOT more money!  LOL 

Originally posted by @Greg Odom :

@Karl Krentzel Wow!  Thanks for the insight Karl!  Luckily I do have some sales experience in my current job as a leasing agent.  I work for a property management company that manages multi-family communities.  I was even a "floater" for awhile because I was good at going to any of the 12 properties that run here in town and could sign leases.  I think that selling apartments and selling real estate are not to far off from each other.  Except when I sell real estate I will make A LOT more money!  LOL 

 I hear you.  As a Realtor® who also Invests, I appreciate where you are coming from... and you will!   Have a powerful sales day! 

Originally posted by @Karl Krentzel :
Originally posted by @Greg Odom:

From what I have been reading a lot of newbies gravitate towards Wholesaling.  I am certainly a newbie real estate investor.  The whole reason I am here is because a read an ebook on wholesaling that i got free access to on my local library's webpage.   After reading different things on here and the webinar on Thursday night about wholesaling, I think it might actually be harder than a lot of newbies might think.  And certainly harder than the "gurus" tell you it is.....*If I'm completely off base somebody please correct me...lol

**What are YOUR two most important things a newbie should do when they are just starting out?

-Greg Odom

Hey Greg! 

You know, that is a great observation... here's what I tell myself when I think about stuff like that.

"If it were easy, everyone would do it, and there would be no money in it."

The truth is, while a lot of "newbies" gravitate towards Wholesaling because it is the easiest way to get involved in Real Estate investing; they are seldom taught the sales skills necessary to know what to do.

At the end of the day, this is a sales business.  To answer your question as succinctly as possible, my two suggestions that are the most important things a newbie should do are these.

1.  Learn Sales Skills.  

Without learning the "Five Core Competencies" (Lead Generation, Lead Followup, Prequalification, and Closing Skills), you are already at a disadvantage.  Most "guru's" teach Marketing.  Not Sales.  

When you are new, you are not as confident as you could be.  Fear causes you to "not do" the things that you know will get you business.  For example, calling For Sale By Owners, For Rent By Owners, Expired Listings, Cancelled Listings, Door knocking Notice of Defaults, etc.  is virtually impossible for the newer practitioner (aka. "newbie").  

Why?  Not because he is scared, it's because you don't know what to say! 

When you learn what to say, the fear goes away.  

So for a newer practitioner, I would say it is critical that you learn sales skills.

2.  Take Action!

One of the very best things about wholesaling is that it is virtually impossible to screw up if you understand a few basics.  You have an inspection period, and if it isn't what you want it to be, cancel! 

You will never get paid reading a book.  The only thing that has any value is a signed contract.  Therefore, devote 75% of your available time to completing the 5 Core Competencies and take action!

*** Additionally, the best Rehabbers, and Landlords I know are also great wholesalers.... it's not a "beginning step".  It is just another niche... Get awesome at finding a great deal in your town and you will never be without a friend in need.

Some basic thoughts about wholesaling for the new...

a.  The Seller's Motivation must be at the highest level possible.  A useful question to use to determine their motivation is "What happens if it doesn't sell?"

b.  The closer you act like a real buyer does, and less like an investor, you will get more deals done.  Avoid the trap of "push button" wholesaling.

c.  Price fixes everything.

d.  Those who control the Inventory, control the market.

e.  If you get a property under contract, the buyers will follow.

f.  If you aren't getting any action on your property for sale, the price is too high.

g. No matter what, fail forward faster! 

Hope that helps, and sorry for the long post!

Have a Powerful Sales Day! 

 Karl - I always love reading your post - you always get me pumped up like watching "ROCKY 1"

but i have to disagree on one comment you made (don't get me wrong brotha - I love you)

 "Without learning the "Five Core Competencies" (Lead Generation, Lead Followup, Prequalification, and Closing Skills), you are already at a disadvantage. Most "guru's" teach Marketing. Not Sales."

I never been to a real estate seminar - when marketing was taught (and I been to so many I lost count) - telling you to send letters (direct mail) is not a marketing plan.

These seminar guru's teach fix n flip / fix n flip / blah blah blah...

I learned every piece of nugget they could toss at me...

How come my phone was still not ringing!!!!  I'll tell you why, these knuckleheads left the most important concept out - to a successful business - "IT'S THE MARKETING"

Marketing is the "BLOOD TO ANY BUSINESS"

think about it - I heard of a marketing degrees, but i never heard of a fix n flip degree 

The marketing plan (strategy) alone - can easily take up a 3 day seminar!!

Attention Newbies:   become great at marketing first!!!    

Some of the cheapest streams for marketing:

1. craigslist

2. facebook

3. instagram

4. linkedIn

5. bandit signs

6. car magnets

7. parking lot - post cards

8. emailing listing agents

9. leaving post cards at laundromats

10. door knocking NOD's (share this listing w/ a realtor - build relationship)

11. guys - wear a  T- Shirt      "I BUY HOUSES" 

12. introducing your self at open houses

13. Attend REIC (Meetups) - create alliances - network

this list can go on and on!!!   the key - you have to announce to the world - you're a real estate investor!!!  

Newbies - you're right - this business will suck!!!  if you do not market - your brand!!! 

Guys - I'm an old gym rat ( past personal trainer) 

I used to tell people - what you do today in the gym - shows up 30 days from now..

this is the same philosophy with marketing...

your marketing efforts today - will build your pipelines for tomorrow

God Bless

Michael Rae

@Greg Odom  

  With your background skip the wholesaling route as its rarely a long term thing or career.. if your a leasing agent then your half way to getting your RE license... Get your RE license you can make money while you learn.. And if your good at PM Lord knows there is a huge demand for good PM's and PM's that can place tenants.. I bet if you look at some other RE opps instead of wholesaling you could build a business that has legs and you could do for many years..

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

Originally posted by @MICHAEL YBARRA :
Originally posted by @Karl Krentzel:
Originally posted by @Greg Odom:

**What are YOUR two most important things a newbie should do when they are just starting out?

-Greg Odom

Hey Greg! 

You know, that is a great observation... here's what I tell myself when I think about stuff like that.

"If it were easy, everyone would do it, and there would be no money in it."

......

I used to tell people - what you do today in the gym - shows up 30 days from now..

this is the same philosophy with marketing...

your marketing efforts today - will build your pipelines for tomorrow

God Bless

Michael Rae

Thanks for the compliments and I won't argue.  The age old argument between which is more important; sales skills or Marketing is sort of a chicken and the egg argument.  

One is to say that by not having a prospect; you have no lead to present to with skills. (Marketing) 

The other is to say that without the skills to know what to say, you won't prospect. (Sales skills; lead generation) 

Just in this guys opinion, all the methods you mentioned above are great ways to get business free, and fast.  

Once you do that, then all you have to do is use sales skills to win!

I agree with all those methods, and you are exactly right.  What you are doing today is going to produce results in 90 days!

Have a Powerful Sales Day! 

Great post. There was a lot good in-site written here. 

Medium 81048c77 58cc 4185 96f1 1f68651264efJerron Horn, Premium Property Solutions LLC. | 248‑518‑0677

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