The Pros and Cons of Wholesaling Strategies

[Jeremy Beland]

When you’re just starting out in wholesaling, it’s easy to get lost in the noise: “Do cold calling!” “Go virtual!” “Try novations!” The truth is, every strategy has strengths and weaknesses. The key is understanding where they fit in your journey.

Cold Calling
Pros:

• Cheap entry point — if you’ve got more hustle than money, it’s a way to get in the game.
• Immediate feedback — you’ll know quickly if a seller is interested or not.

Cons:

• Burnout is real. Cold calling eats up a ton of time and energy.
• Conversion is low. You’ll need to grind through a mountain of rejections.
• Long-term scalability is tough. Eventually, you want to move beyond just dialing numbers.

Direct Mail
Pros:

• Sellers come to you. Instead of chasing, you attract people ready to talk.
• Can be systematized and scaled once you dial in your market.

Cons:

• Costly upfront. Postage and printing add up fast.
• Requires consistency — one mailer won’t cut it, you need repeated touches.

Virtual Wholesaling
Pros:

• Potentially easier acquisitions since you can cast a wider net.
• Ability to enter markets with more deal flow.

Cons:

• Building rapport is harder without face-to-face interaction.
• Lower spreads and ROI are common.
• Much higher cancellation rates.
• Finding buyers is more difficult, and selling properties takes more work.

Bottom line: Virtual sounds sexy, but in reality, you often do more work for less money. I recommend focusing on your local market until you truly max out its potential. If you branch out, go deep into one solid secondary market instead of chasing deals all across the country.

Cash Buyers
Pros:

• The backbone of every wholesaler’s business. The more buyers you have, the easier it is to move deals.
• Reliable buyers mean smoother closings and stronger negotiations with sellers.

Cons:

• Takes time and effort to build a strong list. Many beginners neglect this part of the business.

My advice? Spend as much time building your buyers list as you do chasing leads. A big buyers list solves a lot of problems.

Novations
Pros:

• A creative strategy that allows you to move properties to retail buyers, not just investors.
• Can increase profits on certain deals.

Cons:

• Complicated and requires more paperwork.
• Not ideal for beginners — best used once you’ve mastered the basics.

Final Thoughts
There’s no one-size-fits-all strategy. But here’s my take:

• Cold calling = good hustle starter, not a long-term play.
• Direct mail = steady and scalable if you’re willing to invest.
• Virtual = looks appealing, but often more hassle than it’s worth. Stick to local or a strong secondary market.
• Cash buyers = build this list like your business depends on it… because it does.
• Novations = advanced tool, not where you begin.

At the end of the day, wholesaling requires marketing, patience, relationships, speed, accuracy, and a strong mindset. The ups and downs never go away — even after years in the business. But if you stick with it, the consistency pays off.