5 Common Reasons Wholesalers Don’t Get the Deal (As Explained by Sellers!)

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If you have been wholesaling real estate for a good length of time, you will run into sellers who will occasionally accept a lower offer to get a deal done. Mind-boggling, right?

Absolutely NOT!

After speaking with a few sellers who did not close deals with me, I would follow up with them just to take note on their transaction to better evaluate my process and to cultivate my skills. In doing so, I noticed that money some of the time is not the determining factor. Of course, as wholesalers, we understand that money is not always the motivating factor or they would sell their property traditionally. However, there are other laws at work that can sway a seller’s decision.

In speaking with a few of these sellers, they pointed out 5 things in our general conversation that swayed their decision to accept a lower offer than mine.

Here are 5 factors that made me miss out on deals, and I would like to share them with you so you can avoid these mistakes.

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5 Common Reasons Wholesalers Don’t Get the Deal

1. Perceived Bad Motives

One of the sellers felt that my motives were wrong; I asked that she please elaborate because this is normally not how I come across, and I would hate to give off that impression. She stated that during negotiations, I was not patient enough with her, and I was more focused on getting her under contract.

Related: 3 Examples That Prove Why Wholesalers Should ALWAYS Know Their Sub-Markets

After the discussion, I totally remembered the day, and it was a rough one, and I may have projected the wrong attitude, which gave her a negative perception of my intentions. I was in a rush because I double booked appointments, and at the time, I did not focus on the customer at hand. This was a wonderful lesson learned: Give every seller your undivided attention, especially during negotiations.

2. A Lack of Exit Strategies

Maximizing every opportunity means you have to have numerous strategies; there cannot be a one size fits all approach when working with sellers. At the time wholesaling was my one trick pony, so every seller needed to fit within the golden rule of 70% ARV. Well, not everyone is that motivated to lose 30% marketshare, no matter the situation they may face.

wholesaling-deals

I now have multiple strategies that I use to get a deal done. In the beginning it was difficult to transition, but in order for me to become more of a player, I needed to have more than one iron in the fire. I lost deals because other wholesalers were able to market deals that were thinner because they had buy and hold investors on the buyer’s list and not just flippers, or they were able to do creative financing, or they just listed the property traditionally. I am continually working to expand my product offerings to aide my sellers.

3. Bad Timing

There’s not too much to say about this, other than “right time, right place” will usually get you the deal. I used to beat myself up about this, but I understand now that no one will be able to capture every deal. However, continuous marketing will keep you in the mind’s eye of the seller who is on the fence. Be prompt in returning phone calls and keep the marketing machine going.

4. Ineffective Communication

This also ties in with #3. You may miss a deal due to timing, but please never miss a deal due to ineffective communication. One of the sellers stated that I spoke in real estate jargon, and it was hard for her to follow me in our discussion. Shame on me, right?

Please learn that you need to communicate on the lever the receiver is on. Tone, pace, and voice projection are important; however, you still want to guide the seller along the conversation without losing them.

5. A Failure to Follow Up

Everyone know that you must follow up with sellers continuously, unless they hang up on you, the property is sold (closed escrow) or they state they are not interested and please do not contact them again. If their response is neither of these mentioned above, guess what? You need to call them.

wholesale-communication

Related: 3 Tips for Wholesalers From an End Buyer’s Perspective

One of my biggest mistakes was missing out on a deal because the property was listed at the time (pre-license) and under contract. You will still need to follow up on these deals. In the example of mine, the property fell out of escrow and another investor was continuously watching the property to see if it would close — and that is exactly what happened. There was no closing, and he/she got the wholesale deal. Be willing to accept “NO” until you receive “YES.”

I hope these 5 factors help you when talking and meeting sellers along your path to becoming a real estate wholesaling machine. If you have any horror stories on missed opportunities you don’t mind sharing, we would leave to hear from you.

Investors: What has kept you from landing deals?

Be sure to let me know with a comment!

About Author

Marcus Maloney

Marcus Maloney G+ is the Executive Officer of Equity Realty & Investments as well as 3rd Generation Management & Holding LLC, both are family owned and operated real estate investment firms. The firms' goal is to provide affordable solutions in real estate while providing exceptional opportunities for community redevelopment for the residents of Phoenix, Arizona and Chicago, Illinois. You can follow Marcus on Twitter

31 Comments

  1. Dawn Anastasi

    I just called a wholesaler a week ago about one of their properties. Did I get a call back? NOPE! Not even anything telling me the property was gone and asking me if I would be interested in anything else. How do these people stay in business if they don’t return phone calls?

    • Steve L.

      Dawn,

      I completely agree with you. This happens time and time again. Most wholesalers, not all but most, lack communication and understanding of what it takes to put together a deal and then be able to get it to the closing table.

      There are a few that are very successful and really knock it out of the park with not only communication but marketing and getting the deals closed. These wholesalers we have done multiple deals with and will continue to into the future. The others never respond so they miss out on the opportunity.

    • Marcus Maloney

      I apologize everyone for not responding to your post, for some reason I have not been receiving notifications when post arrive.

      Dawn you are absolutely correct I have called wholesalers in other markets and I do not receive a response. As a wholesaler its great that my competition is lagging in their follow up.

      “Enjoying the Journey”

    • Marcus Maloney

      I apologize everyone for not responding to your post, for some reason I have not been receiving notifications when post arrive.

      Thank you Kyle, I had a great Mentor to make sure that we focus on follow up so by putting these measures in place we are able to get to the closing table. It normally takes about 7-10 calls to get the property under contract (except the low hanging fruit).

      “Enjoying the Journey”

    • Marcus Maloney

      I apologize everyone for not responding to your post, for some reason I have not been receiving notifications when post arrive.

      Marian, thx for reading keep plugging away, remember treat it as a business and it will respond as a business.

      “Enjoying the Journey”

  2. Terrence Moore

    I appreciate the article. Very informative. It allowed me to see where I was going wrong. With this new information, I am going to follow up with the seller who is looking to sell in three weeks and offer him a price that a buy and hold buyer will be interested in.

    Thanks

    • Marcus Maloney

      I apologize everyone for not responding to your post, for some reason I have not been receiving notifications when post arrive.

      Terrance,

      Great thinking; you have to have numerous strategies to get a deal to the closing table. Create a buyers list for Realtors and Buy & Hold Investors. Many wholesalers make the mistake of just trying to focus on what flippers are looking for but there are Realtors that are looking to get their clients really good deals, and if you can provide that they will assist you with pocket listings and information on properties before they become available. Keep that in mind.

      “Enjoying the Journey”

    • Marcus Maloney

      I apologize everyone for not responding to your post, for some reason I have not been receiving notifications when post arrive.

      Tim,

      That is the key always follow up and you have to follow up with sending mail as well.

      “Enjoying the Journey”

    • Marcus Maloney

      Manfred,

      I apologize for not responding to your post, for some reason I have not been receiving notifications when post arrive.

      Its all about relationships, people will sell for a lesser price to someone they like versus selling to a jerk for more money, I’ve seen it happen. Always provide value to the client even if they are not selling at the moment. I called a seller yesterday for the second time just to let her know what was happening in her back yard. She has to sell eventually and I want her to think of me 1st.

      “Enjoying the Journey”

  3. Steve G.

    A great idea to follow up on the deal you didn’t close to find out why the seller sold to someone else. Shows great intuition and that you actually do care about your business . . . . and ultimately your customers! Good business acumen!

    • Marcus Maloney

      Steve,

      I apologize for not responding to your post, for some reason I have not been receiving notifications when post arrive.

      Thank you as I was telling another reader its all about relationships and learning from those relationships. I have received referrals from previous clients that did not sell to me and was able to close a deal from the referral.

      “Enjoying the Journey”

    • Marcus Maloney

      Baron,

      I apologize for not responding to your post, for some reason I have not been receiving notifications when post arrive.

      Glad I could be of assistance. Its not hard but you have to put ideas to action.

      “Enjoying the Journey”

    • Marcus Maloney

      Ron,

      I apologize for not responding to your post, for some reason I have not been receiving notifications when post arrive.

      Thank you, my philosophy is to be a solutionist for someone, even if I am not able to purchase the property I try and steer the seller in the right direction. Be positive and positivity will be recipricated. Many wholesalers are just about the dollars and cents but these are people’s lives we are dealing with and they find themselves in some instances in a vulnerable situation. Being a solutionist helps versus taking advantage for a bigger payday. Thanks for reading and the compliment. I appreciate the readers.

      “Enjoying the Journey”

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