I’ve been wholesaling for 3 years now. I’ve learned a lot along the way. I see a lot of bashing towards wholesaling, and while I get it, not every wholesaler these buyers come in contact with is legit or knows what they’re talking about, but that’s not the case for all of us. There are good and bad apples everywhere in every industry. I say that to say this; dont let folks who dislike wholesaling/wholesalers discourage you. You can create and run this business the correct way. Here’s some mistakes I make and I hope me writing them out helps you prevent a bunch of headache.
1) Treating wholesaling like a hobby
Wholesaling requires your full attention. There’s 4 parts and if you don’t have capital to hire a team then you’ll be handling all 4 parts by yourself. I didn’t understand how to run a business, but I was consistent and that’s why I got my first deal so quickly.
2) Listening to too many people
This is a mistake EVERYONE makes when trying to learn new information or a new skill. This can actually cause analysis paralysis, which means you’re consuming a bunch of information but you’re not taking action. Find 1-2 people that are actually getting results that you can learn from directly and pay them to learn what they know.
3) Lack of skills
Wholesaling real estate is just a 4 step process that’s actually pretty simple but if you lack skills such as negotiation, sales, marketing, and just having good people skills then you will not make it as a property consultant.
4) Marketing to too many people
If you’re just starting out, you need to choose ONE market and one way to reach the market. People only sell stuff for a discount when they have a major pain, so remember that when you’re going through leads.
5) Growing too fast
This was a major problem for me because I was trying to follow wholesalers that were doing 50k+ per month and already had a massive operation. When you’re just starting out you have to run your own pace. I tried to hire virtual assistants too soon and paying for software that wasn’t needed. If you want to find a deal with little capital, all you need is a laptop and a phone to make calls.
6) Not knowing how to analyze a deal
This is probably the number one mistake all beginning investors make. This can also kill your credibility with investors, so you definitely want to make sure you have a coach or mentor that can help you analyze deals correctly.
If you can avoid the mistakes above then you’re already lightyears ahead of other investors that are starting out
6-9 Figure+ companies are built exactly like wholesaling operations. They run ads to bring in a massive amount of leads, have people sort through the leads to find the POTENTIAL deals, and then have a sales team close the deals to bring in cash flow.
Messaging, Lead generation, and Sales is the backbone of any business.
So how was I able to get my first deal in a couple weeks of starting??
Consistency!
I drove for dollars Monday- Thursday to build up my list. I went through FSBO leads on Zillow and FB marketplace. I had people sending me referrals. If necessary, I'd skip trace all night so I could be making phone calls the next day.
Wholesaling isn’t rocket science. I literally see people promoting all these systems and $5,000 courses, etc.
NONE OF THIS IS NEEDED TO CLOSE A DEAL
What’s needed is conversations. The more conversations you have the more opportunities
So what would I do differently knowing what I know now?
I would stop using ancient old marketing techniques and start running Facebook ads to get motivated sellers contacting me while still driving for dollars and cold calling
When it comes to wholesaling there’s a lot of “monkey see, monkey do”
Don’t be afraid to step outside your comfort zone and do the uncommon
Wholesaling is just marketing and sales. Once you understand how to market EFFECTIVELY and put out the right message that resonates with your target market then you’ll never have trouble keeping leads flowing in
Once you get that part down you need to focus on your sales process because this is what’s going to put money in the bank
You have to be able to negotiate.
If someone is selling a home for a discount it’s because they have a major problem that needs to be solved.
Become the problem solver.
Every lead isn’t worth chasing because once again if they aren’t motivated then they’re not going to sell their home to your for a discount
Hope this helps and remember no matter how bad things are stay positive because your life can change from one deal!
3 years ago I was a full time truck driver, now I’m a full time investor
Now I’m on a mission to help other investors close their first deal and scale to doing multiple deals per month
