What are your greatest struggles and concerns?
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
I'm interested in hearing what new wholesalers, or those that are thinking about entering this business, are most concerned with, or struggle with the most. Some suggestions below...
1. marketing - finding motivated sellers
2. marketing - finding buyers
3. acquiring and using the correct contracts
4. pulling comps and determining value
5. determining repairs
6. motivation
7. inspiration
9. lack of confidence
10. negotiating
11. evaluating a deal
12. working with title companies/closing attorneys
13. creating relationships with other investors and realtors
14. finding a mentor
15. fear
16. other (please explain)
I'm trying to get a feel for what's on your mind these days. Specifically, what is holding you back, or what is keeping you from putting action behind information you've acquired.
Although I don't wholesale, I think this is a very very important post, regardless of what your area is.
Starting off, (keep in mind, I just do lease options) I think my biggest struggles were:
having the drive to "stick to it" despite not knowing what the hell I was doing.
Being able to keep forging ahead even though sellers would ask me questions that I didn't have the answers to.
Realizing that I had to "keep tweaking" until I figured out how to make the pieces fit for me.
Not having fear of knowing all the answers to all the questions...(fake it till you make it!)
I think this is a great post, as I think the hardest part is getting traction. It's so easy to give up, or think, "well, I tried that, but it didn't' work" and move on to selling vitamins via a MLM.
No matter the business, you have to have a certain fire in the belly that keeps you going.
#1- Fear of Success.. I've come to notice that with success in anything you loose things/people. Also things change and sometimes they change quickly. While I'm not afraid of change and I welcome it, I can't get use to the "finicky humans" that' I've encountered and loss in this lifetime.
#2- Fear of not controlling every aspect of an investment (Escrow, Title, outcome of the deal, etc.) . This is something I really need to overcome, as I'm sure it's one of the biggest reasons why I don't grind as hard as I could/should.
Great question
Long story short... my initial issue was figuring out where to start. Finding sellers OR finding buyers. I came to the coclusion that it would make sense to have a buyer's list established first. The majority of the investors (landlords/rehabbers) that I've reached out to aren't too "picky" with their prefences i.e.: specific neighborhoods and the level of repairs they'd be willing to make. In this line of work reputation is everything and I would dread finding a deal, getting it under contract and not being able to successfully close on it. Even though the buyers I've reached out to say they will hop on any big deal a part of me is fearful that I might come across something that I consider a deal that they might not be interested in.
The other part of the issue is at what point do I stop trying to build my buyers list and do I start marketing for sellers? Would it seem unprofessional if I reach out to get someone on my buyers list and a lot of time has elapsed from when I contacted them to when I present a deal to them?
Although I don't wholesale, I think this is a very very important post, regardless of what your area is.
Starting off, (keep in mind, I just do lease options) I think my biggest struggles were:
having the drive to "stick to it" despite not knowing what the hell I was doing.
Being able to keep forging ahead even though sellers would ask me questions that I didn't have the answers to.
Realizing that I had to "keep tweaking" until I figured out how to make the pieces fit for me.
Not having fear of knowing all the answers to all the questions...(fake it till you make it!)
I think this is a great post, as I think the hardest part is getting traction. It's so easy to give up, or think, "well, I tried that, but it didn't' work" and move on to selling vitamins via a MLM.
No matter the business, you have to have a certain fire in the belly that keeps you going.
I recently started looking for cheap houses with lots of equity on the MLS. This involves using larger earnest money deposits (EMDs). I'm only making 1 offer at a time and am using a 15 day inspection contingency and a private funding contingency to protect my EMD. I am using an addendum which restricts my loss to my EMD in the event of non performance.
Making 1 offer at a time with a short review/ratification period allows me to make several offers in a short period of time, without running the risk of spending a lot of money on EMDs and inspections.
I think this is a great post, as I think the hardest part is getting traction. It's so easy to give up, or think, "well, I tried that, but it didn't' work" and move on to selling vitamins via a MLM.
No matter the business, you have to have a certain fire in the belly that keeps you going.
Hi John,
I don't don't want to hijack this thread but I'm curious about lease options in TX. I keep hearing that you can only do a lease option for 6 months here?
So as to not hijack I will contribute to the thread. I will be sending out my first yellow letters within the next 10 days after a year of learning. My biggest roadblock has probably been fear of the unknown. I'm one of those people that would take unhappiness over uncertainty as evidenced by my corporate job that I hate.
I've used the teachings of Napoleon Hill, Tony Robbins, Brian Tracy, Jim Rohn, and Les Brown to get my head right. Ultimately there's really nothing to fear at all except the pain of regret for not ever getting started.
Getting past the first deal. Once that is over things start getting better & easier as you go along. Analysis paralysis holds many back from doing that first deal and they never realize how much they have missed out on.
David Tower "unhappiness over uncertainty" very true! Amazing how we tend to stay in our "comfort zones" that actually aren't "comfortable" at all! As far as LO's, I've answered some questions of those here on BP, so I think you can search for them on the site.
1. marketing - finding motivated sellers
This has been my biggest issue.
I've got most of the pieces in place to do a deal. Spoken with hundreds of sellers. A small amount have been motivated, but had some issue that made the deal not worth pursuing.
A handful have been motivated and matched up with the needed property criteria.
Even got a couple of properties under contract, but the deals ended up falling apart.
I'm confident that I'll get a deal done, but this current process won't work for anything resembling consistent income.
So my #1 issue is - how to find motivated sellers and how to find them on a regular basis.
Considering I am just getting back into the game (I've been gone for a minute or two) - END/EXIT BUYERS... The more I can get the better. Finding motivated Sellers or wholesale deals has never been an issue for me in any market... But now I have to build my network all over again...
As for your list Andrew... I am secure and confident in all those areas. I just need to build my buyers list.
I'm having difficulty locating buyers. What is the best approach for finding buyers? I have plenty of inventory I can move, just finding the buyers is the problem now. Maybe a little fear is still present, but I'm working hard on that.
I've read that when wholesaling properties you need to find distressed owners which may be in the "pre-foreclosure" stage. How about foreclosure properties/REO's? Is the process that same?
VIRGINIA ALPUCHEBrian G.Wow! Great responses. I'm guessing there are many more struggling individuals out there that read this post, but are fearful of chiming in. And that is where we'll start...
Bridget D., Dale Osborn, @david tower
Fear, IMO, is the biggest hurdle to success in this business, and any other, for that matter. It's the biggest hurdle to happiness, positive relationships, health and anything else that we will consider successful. I battled it for years. Like Bridget, I also feared both failure and success. It's a double-edged sword. But, in the end, it's all the same... fear.
Because of this, I study and research ways to make myself stronger, more confident, more self-assured, more abundant, healthier and happier. I study mind and subconscious mind strategies and techniques constantly. And, I spend time daily putting action behind what I learn. Through it all, there are a few key points I've come to believe: everything exists for me as a possibility (and I mean... everything) and if you can dream it, the mind can help you accomplish it.
Seek and ye shall find. Be a lifelong student and be active. It's been said that there in every situation there is only two choices - love or fear. And, if you choose love every time, you'll have an amazing life. Remember that...
No Eaze
Where do you start... buyers or sellers? I go with the market. If it's a buyer's market, I find the buyers first. If it's a seller's market, I find the deals first. We're currently in the midst of a market shift, from a buyer's market to a seller's. And, if your buyers aren't too picky, then I'd get out there and find them some deals quick.
John Jackson
Sticking with it, when you're not having a ton of success, is a huge challenge. But, I'll give y'all a quick story that will motivate you. And, when you think about quitting, think about it...
I had a student years ago. Was one of my first. He was a nice guy, but was struggling. I would meet with him and I could see it in his eyes... not much confidence or self-esteem. I gave him the knowledge. But, he was hesitant to put action behind it. And thus, he didn't do much for the twelve months I coached him.
Months after he left my program, he sent me an email updating me on where he was at. He said something to the effect of, "Hey Coach, I finally decided to put your teachings to work. I just flipped my first house for $49,000 in profit! I am about to take my entire family on a vacation! And, I have two more deals coming right behind it. Thank you!"
He stuck with it. He found his courage. He put action behind his knowledge. He earned a HUGE payday on his first flip. And, he's still flipping houses today.
Demos Loizides
If you go seller-direct, instead of to the MLS, for your deals, you can make a ton of offers... with no earnest money. My students do it all the time.
@brian G
This is what we do, my man. We field a hundred leads to make ten offers in the hopes that one or two come back signed. My advice is to tighten up your marketing. You're probably not reaching the people you need to. The best way to do this is to mail to a targeted list. That way, you know exactly who will be seeing your postcard/letter, and that his situation fits your criteria.
Henry M., @virginia alpuche
Put out 50 yellow bandit signs advertising property. Put them on busy streets, where lots of eyes will see them. And, really sell it, too. Something like this will surely make the phone ring...
cash buyers only
55% of ARV, 20% ROI
3/2 block 1250 sq ft
won't last long
(phone number)
Stan Zabizhin,
You just need to find a distressed seller with equity. They could be in foreclosure, pre-foreclosure or any number of other situations. Distressed landlords are a great target... who are usually not in pre-foreclosure.
Keep em'coming, guys and gals. This is fun...
My biggest weakness is living in South Carolina. I found this site, was so excited to wholesale houses, and soon found out that I can't use a Title company to close with here in SC. They simply don't do that with escrow. So revamped, I have a plan, but it will take me a little longer to get there. I was really defeated when I found that information out and kinda lost my spark, but I am working on regaining it back, I have been looking at foreclosures and REO properties, I went and looked at two properties yesterday, I know deep in my heart, if the right deal is there, I WILL make it happen. I cant get a decent loan, due to divorced in the last 4 yr.s costed me some points to decrease on my credit score, but I have been fixing that the last two months. Creditors are really tough and play unfair when you are trying to clean up your credit. Plan B, rental income to cash flow, have some money to invest and go from there. I'm not going to be defeated, one day I can sit back and laugh at this post.
Susan Knight
Yes you can. I know guys in SC that are wholesaling houses. Who are you listening to... a realtor?
I have a realtor friend, and she would join me in a heart beat if she knew it was as easy as the other states, I have come to the conclusion I will just need an attorney to help me form a contract that i can use that will keep me safe in dealing with sellers. I wish BP would post more information on what to do in states like mine that aren't cut out to do closings with a title company. I'm sure you do have friends in SC that wholesale houses, I just haven't learned that part yet.
My biggest obstacle has been finding motivated sellers. I have a nice list of buyers that are actively buying deals every month, but no product. I know it is simply a numbers game, but it gets frustrating.
Susan Knight I still don't see the problem. I've had two students in SC and neither ever mentioned anything like this. Is it just a contract issue? If so, message me and I'll send you mine. It's 100% legal and not state-specific. Your contract only needs a few things on it to protect you. It needs to be assignable and it needs to have a clearly defined inspection period. The inspection period is your insurance.
Reggie Youngblood
To find deals, you need a well-rounded marketing mix, consisting of many different things, Reggie. You can't just look in CL and expect to find deals. You can't just put out 100 bandit signs, either. It needs to be signs, mailers, business cards, networking, bird dogs, driving for dollars, classified ad, online classified ad, etc, etc... every single month. Then, you tweak and do it all over again.
My biggest struggle so far has been juggling my 9to5 job, my wife and new born baby as well as the pull of all my friends to do things during the week, finding time to exercising and my real estate investing stuff. I got a partner to handle things like answer phones and deal with the sellers because calls always come in during the day and he can answer them. But I still struggling with finding the time.
Another thing we struggling with is finding motivated sellers. I get plenty of calls from my out-of-state marketing but most of those calls are tire kickers and not very motivated. I hoping that the motivated sellers will call as my marketing reaches them on the 3rd, 4th, 5th and beyond touches.
I think this is a great post, as I think the hardest part is getting traction. It's so easy to give up, or think, "well, I tried that, but it didn't' work" and move on to selling vitamins via a MLM.
No matter the business, you have to have a certain fire in the belly that keeps you going.
John, this is so spot on!! Thanks for speaking from the heart and saying it how it really is. Those are definitely my challenges. I would never think someone who is as successful and knowledgeable as you ever had those ; >
When I was listening to your last class I was thinking, "OMG I don't know enough to do this!!!!!! Mortgages etc" I'm good at marketing, and talking---I just gotta figure out the rest as I go I guess.
Thanks for the encouraging post John. And thanks to Andrew for this great thread!
Bridget D., Dale Osborn, @david tower
Fear, IMO, is the biggest hurdle to success in this business, and any other, for that matter. It's the biggest hurdle to happiness, positive relationships, health and anything else that we will consider successful. I battled it for years. Like Bridget, I also feared both failure and success. It's a double-edged sword. But, in the end, it's all the same... fear.
Because of this, I study and research ways to make myself stronger, more confident, more self-assured, more abundant, healthier and happier. I study mind and subconscious mind strategies and techniques constantly. And, I spend time daily putting action behind what I learn. Through it all, there are a few key points I've come to believe: everything exists for me as a possibility (and I mean... everything) and if you can dream it, the mind can help you accomplish it.
Seek and ye shall find. Be a lifelong student and be active. It's been said that there in every situation there is only two choices - love or fear. And, if you choose love every time, you'll have an amazing life. Remember that...
No Eaze
Where do you start... buyers or sellers? I go with the market. If it's a buyer's market, I find the buyers first. If it's a seller's market, I find the deals first. We're currently in the midst of a market shift, from a buyer's market to a seller's. And, if your buyers aren't too picky, then I'd get out there and find them some deals quick.
John Jackson
Sticking with it, when you're not having a ton of success, is a huge challenge. But, I'll give y'all a quick story that will motivate you. And, when you think about quitting, think about it...
I had a student years ago. Was one of my first. He was a nice guy, but was struggling. I would meet with him and I could see it in his eyes... not much confidence or self-esteem. I gave him the knowledge. But, he was hesitant to put action behind it. And thus, he didn't do much for the twelve months I coached him.
Months after he left my program, he sent me an email updating me on where he was at. He said something to the effect of, "Hey Coach, I finally decided to put your teachings to work. I just flipped my first house for $49,000 in profit! I am about to take my entire family on a vacation! And, I have two more deals coming right behind it. Thank you!"
He stuck with it. He found his courage. He put action behind his knowledge. He earned a HUGE payday on his first flip. And, he's still flipping houses today.
Demos Loizides
If you go seller-direct, instead of to the MLS, for your deals, you can make a ton of offers... with no earnest money. My students do it all the time.
@brian G
This is what we do, my man. We field a hundred leads to make ten offers in the hopes that one or two come back signed. My advice is to tighten up your marketing. You're probably not reaching the people you need to. The best way to do this is to mail to a targeted list. That way, you know exactly who will be seeing your postcard/letter, and that his situation fits your criteria.
Henry M., @virginia alpuche
Put out 50 yellow bandit signs advertising property. Put them on busy streets, where lots of eyes will see them. And, really sell it, too. Something like this will surely make the phone ring...
cash buyers only
55% of ARV, 20% ROI
3/2 block 1250 sq ft
won't last long
(phone number)
Stan Zabizhin,
You just need to find a distressed seller with equity. They could be in foreclosure, pre-foreclosure or any number of other situations. Distressed landlords are a great target... who are usually not in pre-foreclosure.
Keep em'coming, guys and gals. This is fun...
whoosh! that gave me goosebumps Andrew. Very sweet story. Super encouraging. Yes, it's usually the case that we just need to get out of our own way!
Scott Costello
Don't juggle the things in your life. And don't buy into the lie about time management. It's simply about priorities. Prioritize your life, in order. And, you'll always make time for your highest priorities. Here is a good place to start:
1. family
2. job
3. wholesaling
4. health/exercise
50. hanging with friends during the week
Stick to this and you'll go far. Get these things out of order... and you'll fall far.
Melodee Lucido
Successful people feel much of the same emotional challenges as others. The difference is that successful people act despite their fear, worry and overall uneasiness. The difference isn't in what we feel. It's in the amount of confidence we exude. A confident person says "This may be a disaster. But, I'm doing it anyway. What's the worst that can happen? I fall on my face? Who cares?" A person who lacks confidence says, "I don't know enough yet. If I do this, I could fail and look stupid. It's just not the right time."
Ladies and gents, one of the best TV shows on air is the show Biography. It either comes on the Bio Channel, or A&E, or both. This morning, saw the Bio on Eminem. Now, I wasn't a huge fan of his. I'm kind of over angry rap. But, after watching this, I am now a huge fan of his... of him. Talk about overcoming adversity. Dude grew up dirt poor, with a mom who couldn't stand him, as a white kid in a black area of Detroit, and who was picked on so badly that he once spent 3 days in a coma after being attacked as a youngster on the playground. He lacked confidence and self-esteem, family and friends. The only man he ever felt a connection with, his uncle, committed suicide.
Yet, he found the courage to follow his dream. And, in the end, against all odds, he's now one of the most successful hip hop artists ever... with platinum records and grammy's. And, for you techies, his FB fan page is the most popular fan page worldwide... second only to Facebook's own fan page.
Love him or hate him, he's the epitome of success. He rose from nothing and has become a pioneer in his field. We can all learn something from him and his story.
Andrew - I have been going seller direct, by driving around with my car sign; sending postcards to my farm, which was pulled from tax
records and junker drive bys; and advertising on CL.
Demos Loizides
Sounds like you're on a shoestring budget, my friend. You need to upgrade that mailing from a farm area to a much more responsive and targeted list... like absentee owners. My experience was not good with car signs. I used them and got a few calls, but overall, never made any money from them. I think it's going to be tough finding deals with your marketing plan, Demos. But, where there's a will, there's a way.
Great post. I've just recently started marketing probably about 2 weeks ago and I've received a few calls from sellers, none seem motivated enough. (but with my level of experience, maybe I'm not in a position to know who is motivated or not)
My steps - I went to Vistaprint and only had a few bucks to spare and sent out 13 "We buy houses" post cards targeting absentee owners who are code violators . I got 3 calls from them.
I am meeting with one of those sellers on Tuesday. I pulled the comps for the address and 65% of ARV is 34,000. He told me over the phone if I'm not willing to do 50,000 theres no point in talking. I figured I can at least get some negotiating experience when I do go see the property, if I don't close.
Secondly, I sent out about 90 yellow letters on Tuesday and I'm looking to get a few calls from those next week.
My biggest struggle is not knowing which sellers are motivated enough. They all seem very non-motivated and they stick to their prices. Another is, I don't know certain technicalities, one being if the owner owes in property taxes, does that automatically come out of their proceeds?
On a positive note, I have a realtor to pull comps and who has provided me with a list of investors they have worked with, an investor friendly title company, and a few buyers who I look to build a rapport with.
My farm includes about 100 absentee owners. I should probably do more mailings.