Anxious to start wholesaling

[Mark LeCounte]

Hello everyone!

The nervousness has set in. Excited about the business, but afraid that when I find a seller, I won't be able to deliver. Don't know if it's fear of succeeding or failing, just really want to get this first deal out of the way. To take away some of the nerves. Is it just me or is everyone this nervous at first. Any advice would be much appreciated.

Thank you 

[Robbie Reutzel]

@Mark LeCounte

I would say it's very normal to be nervous about your first deal so don't feel bad.  Make sure you have educated yourself on the steps it will take to lock the deal up under contract.  Make sure you have your team ready to roll and try to line some buyers up in the meantime.  I think it's absolutely crucial to have the prospective buyers lined up and most people just don't do this.  

Keep in mind that most newbie wholesalers have problems with 2 major things and they're connected 1) they agree to too high a purchase price; and 2) they are not able to accurately estimate rehab costs.  You should really try to get a handle on those two because if you can do those things accurately you'll build credibility and buyers will trust you.

Keep in mind that the average direct mail campaign gets a 2-3% response rate and you'll probably lock up 1-2% of those in contract.  So if you send out 1000 mailers you would expect to get 20-30 phone calls and probably won't get a deal, especially when you first start. You need to realize this and be able to get by for at least 6-12 months without depending on wholesaling for your income.  It's a numbers game to a large extent but you also need to learn to speak with sellers and you do that by speaking with sellers!

One other word of advice, get licensed if you can, in my opinion it saves you the headache of dealing with whether or not you are brokering without a license.  It can also give you another revenue stream if you're able to convert a dead wholesale deal into a listing.

Hope this helps.  Start marketing and start talking to people!