wholesaling

[Steven Brown]

Is wholesaling on a decline

[Chris Piper]

@Chad Bernstein I know people always say when you find a great deal, the buyers will come out of the woodwork and find you. I have not found that to be true at all in my experience. You can't really know what a good deal is if you don't have a cash buyer's list and if you don't know exactly what they want to buy.

If you find a 3 bed 2 bath in the ghetto for $50,000, and it has an ARV of $150,000, is it a good deal if you have no cash buyers list or if you do, but have no idea what they want? The answer is no. It's not a good deal for you. It might be a good deal on paper, or for wholesalers who already have a cash buyer's list of people who are looking for properties in the ghetto. If you don't have buyers who want those types of properties, then it is not a good deal for you.

A good deal starts with knowing what you are looking for. Initially, you need to let the cash buyer's know that you are very good at what you do, and you will be creating deals for them based on what they tell you they are looking for as their perfect investment property. Let them know that you don't waste a minute of your time, that your time is either spent working on creating deals for cash buyers, or with your family. You will be bringing them the perfect deal wrapped up with a bow on top, and all they have to do is pull the trigger.

You can only know what a good deal is by knowing exactly what your cash buyers are looking for, by talking to them in the beginning, and finding out exactly what they want. I do mean everything: the number of beds and baths, what the exterior looks like, what side of the house the driveway is on, garage, what the interior looks like, what price they are willing to pay, etc. You need to become a master at reverse wholesaling. Once they tell you what their perfect investment property looks like in vivid detail, you need to let them how you operate and what you expect from them. Always talk to your cash buyers with confidence and be straight forward. Even if you've never done a single deal in your life, "act as if." Act as if you've been wholesaling for 10 years, act as if you are the best in your area at what you do, etc.

When explaining how you operate and what you expect from them, let them know that you will be spending your time, money, and resources to create deals for them based on their description of their perfect investment property. So, let them know that when you call, that you will be bringing them exactly what they want and at the price they want, so they need to answer when you call. At the very least, they need to let you know if they are busy and that they will be getting back to you soon via text, email, etc.

Let them know that when you bring their perfect deal to them, that you expect them to put the property under contract immediately, and they need to put $2,500 in escrow right away as well. They will have 7 days to inspect the property, and if they don't like it, they can back out within the 7 days and get their money back. No harm no foul. But, let them know that after the 7 day inspection, that you expect them to close. If they don't close, then inform them that they will be looking for their own deals from then on. It seems harsh, but they have to understand that you are the best at what you do, and that they are lucky to be working with you. Obviously, you want to convey that without saying it, and without being a jerk about it.

The key is 100% to build a cash buyer's list first. Imagine being able to put a house under contract that you know is already sold. That is like getting paid to shop. Pretty powerful stuff.

P.S.- Don't let your cash buyers blow you off by saying "Oh just send me anything you get" or "I want 3 bedrooms 2 baths." That is too vague, and that will cause you to go after deals like that, and end up getting stuck with them when those same cash buyers don't buy when you come to them anything or with a 3 bedroom 2 bath. Make sure you make them imagine and walk you through their perfect investment property that they would buy every day of the year if they could.