How much of successful wholesaling is sales ability?

5 Replies

I'm listening to podcast 67. Tim Gordon has a sales background and he mentions sales ability as being very important to wholesaling success. 

I would think selling wholesaling would be easier than selling a car, but I'm not in the game (yet). What do you think?

Successful wholesaling is mostly sales/marketing. Of course you also have to know enough about real estate in your market to be able to establish a good ARV (something I'm still learning) as well as enough about contracting/rehab to estimate repairs fairly accurately. But in the end you're helping your buyers find a property that's a good fit for their investment strategy. That's sales. You're also helping sellers find a way out of their home that's favorable to them in their individual situation. Again...sales. Best definition I've heard of sales is "helping people make decisions that are good for them." Whether that be a way out of a house they don't want/need/can't afford...or purchasing a property to further their business goals. Hope that helps!

Originally posted by @Jim Viens:

Successful wholesaling is mostly sales/marketing. 

Would a person with average sales ability be able to do it? Or do you really need the "sales personality" in order to succeed?

Alex i think you are missing part of the picture.  Selling the wholesale is only PART of the sales process when chasing and selling wholesales.  Your sales hat is on the instant you get a phone call and you cant take it off until the money changes hands.

A good salesperson will understand how to shepherd buyers and sellers through the process and how to create great outcomes for all parties involved.  Its not just "selling a car" or "selling a wholesale".  Its the complete understanding of people, relationships, needs, wants and fears.  

I would say sales ability is MORE important in wholesaling properties because you are working with something a lot more people have an emotional tie to: Their house.  (so i get emotionally attached to cars as well but thats why i hardly sell any of my cars!)  That emotion creates some pretty big hurdles for anyone and understanding a value add sales approach goes a long way in this business.  

Originally posted by @Alex Silang:
Originally posted by @Jim Viens:

Successful wholesaling is mostly sales/marketing. 

Would a person with average sales ability be able to do it? Or do you really need the "sales personality" in order to succeed?

 The difference between an average sales person and a rock star is experience and perseverance, its rarely a matter of natural ability.  So get out there and develop your craft!

I think part of the hang-up with the idea of "sales" is the stigma of the used-car salesman...someone pushy that seems to be forcing you into a decision you don't want to make. The kind of "salesmanship" that wholesaling requires involves active listening, picking up on verbal and non-verbal cues from the client and then helping them find a solution that works for them. The only personality you need is one that lets the client know you have their interests in mind and are looking out for them as well as yourself. And let that mindset carry through all your transactions from beginning to end. Yeah, you're going to make a profit off the deal, but you're also getting the monkey off the seller's back and providing value to the buyer. I heard someone say somewhere here on BP (may have been Dev Horn) that you're not a wholesaler...you're a "Real Estate Solution Provider". :)

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