Why wholesalers fail starting out?

[Dwayne Jelks Jr.]

Why wholesalers fail and what knowledge a wholesaler should have to become successful?

[Lydia R.]

@Dwayne Jelks Jr. wholesalers fail for a multitude of reasons. Top 4:

1. Under capitalized- they fell for the ‘make millions of dollars with no cash or credit’ sales pitch. It costs money to run a successful wholesaling business. There is no way around that.

2. Lack of knowledge/resources- successful wholesalers need to be able to run comps, estimate repairs, determine ARV, fill out a contract properly, have a title company that works with investors and can close assignments and double closes etc. Most wholesalers jump out and start talking to sellers before they have a solid knowledge base and realize too late that they have no idea what they are doing.

3. More work than anticipated- No one talks about how much work wholesaling is. Lots of new wholesalers saw some guru talk about how easy it is to wholesale houses and once their expectations are destroyed by reality they quit and move on to the next get rich quick scheme

4. Burn out- Some people get tired and quit. Wholesalers have a bad reputation (just look at the forums here, they are filled with wholesaler bashing commentary) and all the negativity can take a toll on someone who is only having limited (or no) success.