Today was an awesome day! I have to tell you how much fun I had chatting with three different wholesalers today and why these relationships are SO important, no matter what kind of real estate business you have.
This morning I was on a call with my partner talking about our end-of-week business and forecasting for the next few weeks, and we were interrupted by one of the couple wholesalers I work with on a regular basis. I jumped off my call because I had sent a text message a few minutes beforehand regarding a property that had been on his private email list of available properties.
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He said the property I was calling about was still available, and in fact he really needed to move it because of timelines, other deals, etc. on his end. We have done enough business together to know that we each will deliver on what we promise–as in, whatever he states and shares about the condition of the property is really what it is, and on our end, we are good to go, we do what we say, and we actually CLOSE the deals.
We spoke for a few minutes. The house was listed for $36k, with an ARV in the $60-65k range, and I got it locked down over the phone for $33k in about three minutes.
I was happy. He was happy. We had a deal.
That was this morning around 9:30 a.m.
An hour later I had a walk through at another client’s property that we are renovating and managing, and I met with a new contractor. We walked the property, and I told him our expectations, laid out the timeline, and boom… on my way.
I had a business lunch, enjoyed the time there, and literally as we were finishing up our conversation, I got a text message from another wholesaler. It was a hot lead.
I checked in with the wholesaler, did a few calculations, and called the seller. We agreed to meet in just a few minutes, and I made my way to the property. It’s in a great area, on nice street, with lots of potential.
The wife was there–very kind–and we walked through the property together. We discussed everything, the good and the bad, and I made her an offer. They are in the process of moving and need to get the house sold as soon as possible. It has quite a bit of deferred maintenance and two bathrooms that REALLY need to be put back together, but it definitely looks like a deal.
Her husband jumped on the phone, and we all three had a quick conversation, discussed the finer points, and right there, the second house of the day was under contract.
On my way home from that property, I received a text message from another wholesaler we use, a great guy who always has great deals. He asked if we do make-readies because we just took over four of his properties in our property management company this week (and you know it’s always a good sign when the wholesaler is coming to you!). Sure enough, we could take care of him. We also discussed business on another house I had viewed earlier in the week that he has listed.
So, to recap: We got two houses under contract and added another house to property management–in about seven hours.
For some time I didn’t think there were “real” wholesalers out there. I saw houses that were called “deals” but were definitely NOT deals.
I saw email lists to sign up for, but I wasn’t seeing any deals coming back from the lists.
However, the more people you talk with, the more guys you know, the more houses you are in, the more people you meet, and the more connections you make, you will find that eventually, multiple bona fide wholesalers will be calling YOU because they have deals.
What I’ve found in our business is that we play a part in many different roles of real estate investing. Sometimes we are the wholesaler, sometimes we are buying from the wholesaler, sometimes we’re the flipper, sometimes the buy and holder. You have to understand how these relationships work and what role you are playing in that moment, during that deal. Understand what that deal can be and how to work through it. Every deal, every house, and every seller will be different.
The wholesaler is the boots on the ground. They see the houses, they know the neighborhood (or should), and they are pricing deals ideally to make them money and to make you money. It always has to be a win for everyone, including the seller.
Take your time to get to know your wholesaler and help them understand what you are looking for and let them know that you will deliver. They will call you. They will want your business! And in return, just like late this afternoon, they will send you business as well because you are trusted, you do what you say you’re going to do–and they know you will deliver.
It definitely pays to have awesome wholesalers who know what they’re doing.
How have wholesalers changed your real estate business?