4 Reasons Why Real Estate Wholesaling Doesn’t Work for Newbies

by | BiggerPockets.com

I have been giving of my time by having phone conversations with newbie real estate wholesalers. In speaking with them, I’ve noticed theses recurring themes that speak to why they are either unsuccessful or can’t get started. I would like to share these with you — especially those of you who are new.

If you’re new and haven’t truly started, or new and are not having success, you may find yourself in one of the following categories:

  • Your skeptical
  • You’re afraid to make a mistake
  • You’re misinformed or over-informed
  • You’re Inconsistent

Let’s briefly dive into each one of these. At the end, evaluate yourself and see if you are hindered by one or more of these categories.

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1. You’re Skeptical

Something very common in real estate wholesaling: You start to believe it’s to good to be true. You’re truly right, everyone talks about the glitz and glamour of being a real estate investor and wholesaler, but the harsh reality is it’s a very demanding job in the beginning.

You find yourself skeptical because it’s explained to be so easy. You watch a few YouTube videos. Read a few blogs, and you think you’re ready to rock and roll — until you dig a little deeper.  Once you start digging, you understand that there are more intricate pieces that you need to know.

Then you become a skeptic. Everything you hear, see, and believe about real estate investing (and wholesaling in particular) you view through a skewed lens of doubt and disbelief.

The end result for skeptics is that they never do anything because they don’t believe, no matter how many testimonials they see on social media sites.

Related: The Ultimate Beginner’s Guide to Real Estate Wholesaling

2. You’re Afraid To Make A Mistake

This is all psychological. People who are afraid to make mistakes can talk themselves out of doing anything.

Trust me. It’s OK to make a mistake. You will bounce back from it.

If you’re trying to invest perfectly (find the best deal, create the perfect marketing piece, trying to find the perfect situation) guess what? That only happens by luck. Seriously. By not being afraid and doing the little things consistently, you will luck into perfect deals. Luck only happens when you’re doing something.

So be prepared. Look at mistakes as teachable moments. I had an epiphany one day; I was making a phone call and dialed the wrong number. The computer-generated operated said, “If you made a mistake, hang up and try again.” This is the approach I take. If I make a mistake (after doing my research of course) and the end result is not what I planned, then I find where I went wrong and try again.

You will learn best by doing!

3. You’re Misinformed or Too Informed

I hear this to often. I just heard this today: “There’s so much information out there about real estate wholesaling; how do I know what is valid?” I say a lot of it is valid, but is it applicable to you and what you want to do?

There is a lot of information out there, and biggerpockets.com is a great resource to gather information. But the information is not the actual problem. The issue is that the new investor is not focused on what they want, and then it becomes too much information.

When there’s too much information, newbies begin focusing on all the information — and not application. Guys, remember: Focus is a real thing, and you have to know what you want to do before doing anything. It shouldn’t take you a year to figure out what you want to do in real estate.

Related: The Newbie’s Guide to Wholesaling in 7 Simple Steps

4. You’re Inconsistent

This is a major momentum killer in real estate wholesaling. You get started doing something and then stop. You get started again and then stop.

You have to decide, either you’re going to invest or you’re not. We all have things that happen. It’s called life. You have to decide no matter what, I am going to be consistent and not stop.

A lot of this is dealing with the psychology of change. With wholesaling, the mechanics are not the difficult part. What stumps most people is muscle right between their eyes. Don’t talk yourself down. It is possible. It is doable.

Remember the majority failures happen before you get started.

Do you struggle with getting your wholesaling business off the ground?

What do you need to move past information into action? Leave me a note below!

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

9 Comments

  1. Julie F.

    Great blog post and Oh-So-True! I teach newbies in a monthly class – most of whom have taken expensive Guru coaching and classes and they are either 1) Frozen from fear, too much info or doubt 2) Eager but not willing to put in the real work 3) Feel it is too hard to get a deal her in LA or 4) Looking at the next shiny object in the $30K classes, or from the most recent REIA meeting. But mostly – they are afreaid of making a mistake. Thanks for the article and may I borrow part of it for my class?

    • Marcus Maloney

      Julie,

      Thank you for reading. Yes fear and the shinny object syndrome is a major problem newbies getting started. Also the ideas of grandeur and becoming a millionaire in 30 days. So many I speak to talk about wholesaling 90 unit apartment complexes and packages they find on the internet not knowing those are normally dead ends. They really need a lot of help, so I try and lead them in the right direction without charging 30k like the gurus charge and they still give very vague information to their members.

  2. Julie F.

    Great blog post and Oh-So-True! I teach newbies in a monthly class – most of whom have taken expensive Guru coaching and classes and they are either 1) Frozen from fear, too much info or doubt 2) Eager but not willing to put in the real work 3) Feel it is too hard to get a deal here in LA or 4) Looking at the next shiny object in the $30K classes, or from the most recent REIA meeting. But mostly – they are afraid of making a mistake. Thanks for the article and may I borrow part of it for my class?

    • Marcus Maloney

      Silvana, let me know if you have any questions. It can be difficult at times to try and teach yourself because every deal can be different some time you just don’t know what you don’t know until you come across it. Thanks for reading

  3. Bri Austin

    Hi Marcus,

    Thank you so much for sharing this! GREAT read, especially for a newbie. 🙂 I’ve been trying to teach myself about REI (specifically, Wholesaling) since February, and it is definitely quite the process. I absolutely agree that you need to have intense focus! These posts are very helpful for someone who is just starting out, so thank you very much again!

  4. Kyle Burrows

    Thank you for this. I feel like it’s just what I needed to hear. I’ve only just started learning about wholesaling and REI in general and the information that is out there can be overwhelming at times. I want to learn as much as possible but I’m still dealing with that fear of making mistakes. I worry that it will stop me from taking action. Reading this has given me hope, knowing that so many other people have dealt with this fear and have overcome it to become successful. I know I can do the same.
    Thank you Marcus.

  5. Bridgette Mitchell

    Thank you Marcus for this article myself have been trying to self teach, read and gain knowledge since March of this year 2018. Although I have learned a lot it’s just so much info. I am not giving up but FEAR of the unknown or FEAR of making a mistake is what’s holding me back. I keep telling myself I just need to get out there and do it. I have been looking to find a coach in my area all with no luck but these words of wisdom give me hope. Thank you

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