How are we different then real estate agents?

Question

Again why me (as a wholesaler) am I going to be able to help different sellers or make them want to work with me more than a real estate agent ???

Frank Wong · Answer

Wholesaling is a tough field. They are in a market where you have a very limited amount sellers you have to be able to compute multiple factors per transaction and you have to spend money on marketing.

Why not just get licensed and be an agent?  An agent has 20x the amount of sellers to select from and 20x the opportunity to represent buyers.  It's an easier sell.  Agents make way more money and the job is easier in my opinion.  Go for the easier and more lucrative job.

Rex Celle · Answer

@Najee Hoggard Hi Najee, good question. I am not a wholesaler but I do deal with them as an investor and what I can say about the advantage to a seller is the speed of close because a good wholesaler will have an inventory of investors that can make decisions quickly and close deals fast (e.g. cash close in 10 days or less in as is condition), when a seller is in distress and needs to get out of the property for whatever reason. There are so many stories I hear from the bird dogs without a RE license I deal with in Georgia where sellers need to sell their homes fast, and I can tell you that it won’t be the regular residential buyer looking for the right home.

Chad Tabary · Answer

Echoing @Arlan Potter. Agents list and market properties at retail value. Most sellers that aren't in a rush, aren't struggling with payments, totally fine on taxes, etc, are going to call up an agent, ask them how much their home is worth, and work with that agent to sell for top dollar.

Motivated sellers on the other hand need to be out of their mortgage or position quick. Often times, for one reason or another, they don't want to deal with the inspection process most traditional lenders will require. They need a cash buyer and to get one they take price concessions.

As a wholesaler (if you're genuinely tuned into the process), what you're telling the owner is that you know how to move that property fast and get them cashed out with little fuss. You find the win/win buy connecting the motivated seller to cash.

Frank Geiger · Answer

Wholesaling is the toughest job in real estate IMO. The job is more lucrative in some markets over others. Until you get systems set up, this is going to be a daily grind for you. The best wholesalers are using thousands of dollars a month to get more deals. You need to find sellers that need to get rid of their property quick due to foreclosure, back taxes, family problems, etc. Many people just choose the first piece of marketing they see if they need to sell fast.

When they choose to sell, they need to see your name first.

Greg Dickerson · Answer

Wholesaling is not the same thing as Real Estate brokerage. A realtor represents a buyer or seller in a transaction for a commission.

A wholesaler is selling a contract which is completely legal.

It’s two very different things. just wanted to point that out to clear up the confusion.

Joel Owens · Answer

Most people making money wholesaling are the people selling information to other potential startup wholesalers! lol

Why do you think all of this crap is on Facebook for seminars all the time. Wholesaling, multifamily, blah,blah,blah.

These marketers know 90% of people have little to no money. They can talk them into buying a system or putting on their credit card. The few 10% who do have larger money the marketers can sell them on private coaching etc. or use their capital to partner on more deals. It's easier for the marketers to find suckers for 500 bucks or 1,000 then to find an actual deal and have velocity that way. That is why they tout the few deals they made big money on and make it seem like that will happen every time.

People need to wake up and stop falling for this stuff. I have seen it over decades people still fall for it over and over. The version of the American dream the herds want is easy and big money. It's amazing when you study the people that are highly successful and they make it look easy  the complexity behind it that makes the business actually go. The goal with a business is to make it simple,powerful, and easy to be drawn to by consumers and have all the complex stuff in the background where it works but people do not need to see it.

Caleb Heimsoth · Answer

@Najee Hoggard well the biggest difference is you’re not licensed and an agent is.  You’re operating in a legal grey area or you’re breaking the law (depends on the state) and an agent isn’t, because they’re licensed.  To me that’s the biggest difference

Guy Gimenez · Answer

Because presumably the seller wants/needs certainty. If you can prove you can solve the problem now rather than maybe solve the problem in 30 to 180 days and do so without any drama, many sellers will consider an investor purchase. Clearly most of what I buy is not retail ready and the sellers understand this. The either don't want to or can't afford to reinvest in a house they no longer want so the investor option is palatable.

Manny Cirino · Answer

A wholesaler does that same exact thing as a Realtor I learned that after getting licensed. The key to success in real estate is having knowledge in multiple areas and strategies that way you find deals were someone less experienced can't.

How are we different then real estate agents?

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