All Forum Posts by: Grant Sylvester

Easy answer.....

Real wholesalers who actually run a business and know what they are doing. Perfectly fine. Unfortunately, those are few and far between.

The barrier to entry for wholesaling is so low that it attracts a ton of dreamers, people who are inexperienced, and people looking to "get rich quick." This in turn, ruins the reputation for the entire industry. Everyone watches a few YouTube videos and thinks they can make some quick easy money through wholesaling. 

@Grant Sylvester the only reason wholesalers are wholesaling is they never learn to structure a deal...they'll pay $5,000 for a class to learn to wholesale and never learn to structure a purchase money mortgage or work with other peoples money to secure deals for themselves...seems like a vicious cycle to me...

Wholesaling is not investing...period...it has a marginal place at the bottom of the continuum...you can be the best trash man in the city, but you're still a trash man...nothing personal against trash men, of course. 

@Grant Sylvester good points, but I don't think having a license has much to do with it...our regulatory agencies are so busy dealing with 8,000 dipshit agents getting in trouble they can't even pursue the unlicensed activity, lol.

Wholesaling really can't exist if you have a real estate license...its just a simple contradiction...we have to disclose highest and best use up front and self-dealing here is simply a licensure violation...

There is a time and place for wholesale deals, but to make an entire industry out of it is insane...the only way this has happened is because people really don't care...and there is nobody else willing to farm trash properties in the worst neighborhoods in town other than wholesalers....even the ocean needs bottom feeders to keep the balance...

@Mike Schorah I cold call exclusively to get my deals. It works, but there are some best practices to follow to ensure you're doing it properly and maximizing your call time. I don't do the calling myself. I outsource it and I encourage you to as well. Cold calling yourself is the equivalent to handwriting postcards yourself. There are so many companies out here that do this for a reasonable price. I've had up to 40 cold callers dialing for me at one point this year. From 2019 - 2020, I worked with a company in Charlotte and they cold called primarily to get their deals. We netted $1.7M in assignments during that year while I focused exclusively on monitoring our cold calling campaigns.

It works still and it's not going away anytime soon. So how do you optimize it? Regarding your point about your number being marked as spam. You can check if your number is flagged by going to https://nomorobo.com/lookup/. After the "lookup", type your outbound number. If you see a message saying "XYZ Number is a robocaller" then your number is flagged as spam. You'll need to change it immediately. This small issue can actually really hurt your ability with getting in touch with sellers. I would encourage you to check your number for spam every morning and a few times in the day.

I like cold calling because I can pull a list of sellers I want to specifically dial and reach out to them. No randomness or junk leads will come through because I determine the parameters for who I consider a lead. Anybody that comes through will have equity and as long as they have motivation, I'll be able to wholesale the deal or take it down myself. 

Do you have any other questions regarding cold calling? I'd love to answer them for you. I nerd out on this stuff!

 I don’t necessarily have a problem with wholesalers. What I do have a problem with is people that have never wholesaled for a living run around saying start with wholesaling… Or someone says they’re broke, don’t have a job, bad credit, and they’re going to build great wealth by wholesaling in order to put down payment on properties and then cheered on by a bunch of newbies.

@Grant Sylvester

Wholesalers are great!

They find the deals, work some figures, and expect some cash for their work.

Just like a used car or mobile home salesman.

If you do too many at once, you are actually in business, and as with any regulated business, you need a license. Most of the issues are with those working a business without the license every realtor is required to get and maintain.

It's the same for cars, boats, firearms, or timeshares. Once every now and then can be tolerated. If you intend to Wholesale as a business, you should look into proper legal rules in your area.

I work with Wholesalers. I work my numbers too. When the numbers are close, I usually get a deal I can live with. If the numbers are way off, I walk the other way.