One of the most important aspects to a successful wholesaling career is being able to build and maintain a list of active investors to sell your deals to. If you want to keep your buyers happy and turn them into repeat customers, avoid the following three actions at all costs…
- Underestimating Repairs
Like I mentioned in this post, you don’t need to be an expert at estimating repairs in order to be a successful wholesaler. What you don’t want to do, however, is paint a picture of a property that does not represent it’s actual condition. No one likes to have their time wasted, so be as thorough and accurate as you can when describing the property condition to your investors.
To give you an example- I recently went to check out a property that another wholesaler sent to me via email blast. According to the description in the email, the house needed “cosmetics.” When I got inside the property, I found that it needed a full rehab- the roof was trashed, the A/C condenser was missing, mold was all over the walls, etc. Needless to say, I will not be going out to look at any more deals this person sends out.
- Overestimating the ARV
If you’re going to provide an estimated ARV (After Repair Value) to your end buyer, don’t try and pull a fast one on them by only including the highest comparable sales with your estimate. Unless you are dealing with a complete novice, the investor is going to do their own due diligence on the deal, and you are only making yourself look like a jerk by trying to jack up the value of the property.
- Repeatedly Sending out Crappy Deals
One of the best ways to ensure that your buyers send your calls straight to voicemail, is to present them with crappy deal after crappy deal. It’s your job to find out exactly what your end buyers are looking for- what parts of town they like, how much they are willing to pay for deals in those areas, etc. If you are constantly sending them overpriced deals, or properties that do not fit their buying criteria, they will lose interest in you in a hurry.
Repeat buyers can put a lot of money in your pocket, so if you want to keep them coming back for more, make sure to avoid these three pitfalls.