What is the hardest part of wholesaling?

28 Replies

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the most valuable commodity to me is information and when working in the real estate industry who has access to real time data more than realtors?

They have everything you need. Buyers, sellers, pocket listings, they will spend their own time and money to market and find what you need.

Originally posted by @Austin Davis :
Originally posted by @Jeff McDermott:

Yeah, that's a good one!

What I did was I would get sponsors, lenders, agents etc. and have them pay for the advertising.  They get their name out to my list and problem solved!

Also, another big move I made early on, connecting with every buyers agent in my area and ask them what their buyers are looking for.  I didn't ask for access to the list, names, numbers etc. I was now providing the agent with a service, which in return I got a portion of their commission if I procured a deal plus I would get my cut from the wholesale which wasn't very much $2-3K but each deal would GROSS $5-6K and most of time with no money out of pocket for any overhead.

 Jeff, would you mind explaining your arrangement with realtors in a little more detail? Sounds really interesting. I'm about to get into the wholesaling market with a friend in the Seattle market. We are looking heavily at partnering with other wholesalers and other real estate professional and agents. 

 Austin, if you're looking to get into the Seattle wholesale market, you might want to contact @Julie Clark . She is a full time wholesaler/investor who also runs a REI group.

Hardest Part of Wholesaling 

For me it's not finding deals, it's not selling the deals, 

My Hardest part was self-discipline. Mindset, to know that every deal may not close. You're going to have some bust outs. 

I trained my mind to keep going by telling myself "Sabrina that next phone call could be a 10k or 100k phone call"

2nd Hardest part was mastering the ability to identify what exit strategy this particular deal should utilize. Transforming myself from a one trick pony into a ninja. :)

3rd hardest was really understanding that I make my money soon as I start negotiating with the seller. NOT WHEN I WHOLESALE THE DEAL OUT. It took me a while to visually understand that.

THAT'S ALL FOR NOW FOLKS

Thanks

Sabrina 

Originally posted by @Dev Horn :

FINDING MOTIVATED SELLERS is THE challenge for wholesalers.

Seriously..... nothing more to be said than that statement right there.  It is BRUTALLY difficult to search through the chaff to find the wheat.  Persistence is definitely the key.  

Must agree with @Raphael Cuthbertson on this one. finding, or rather convincing another human being to sell for 70 - 75 cents on the dollar in exchange for "no realtor commissions" and a "quick closing" is a tall order.  After all, a wholesaler's idea of quick closing is 2 - 3 weeks, perhaps longer, and is far from guaranteed.  And 5% to 6% commission is far less than a 20% - 25% discount.  

if a wholesaler has a legitimately good deal in an area of demand, and has done their homework in terms of repair costs and ARV, there should be no difficulty in selling the contract. i've seen dozens of "good deals" but the properties were nowhere near demanded areas.

I always played matchmaker similiar to an agent.  I'd negotiate the price of any house listed or not down to where I know I could assign the contract for a few thousand dollars.

I worked on volume versus 1 or 2 large scores.

10 deals per month at 2-3k a piece