Wholesaling just seems to be getting hotter and hotter. There are a lot of educators promoting virtual wholesaling, and droves of new investors seem to be taking to it. Some are making $100k a month. Others are still spinning their wheels and trying to make those first dollars.
No matter what scale you are operating at, here are some of the most frequent mistakes wholesalers are making now, and how to beat them to really get deals done, put more dollars in the bank and keep things flowing smoothly.
Taking the Long Route
There are so many marketing funnel and channel ideas for trying to get leads, find sellers and push out to buyers and raise money today. Some are great. Most are just really long detours and excuses not to just pick up your phone and do some prospecting and make some offers. Make money, then you can get fancy.
Follow Up Fails
The number one plague on the real estate industry today is lack of follow up. Realtors and wholesalers are getting plenty of inbound leads, even without a big investment or beautiful materials. They waste the majority of these by not following up. Sellers and buyers and lenders shouldn’t have to follow up with you. If you want the money, deals and sale, you’ve got to follow up relentlessly and fast. If you can’t respond to leads in the first all important 5 minutes, then you need to hire some kind of help.
Not Considering Other Exit Options
Finding cash buyers is great. There may still be many out there. Best Transaction Funding would love to fund your back to back closings on these deals. Though if you are getting a lot of other types of offers, don’t just waste the opportunities. Every lead should be treated like gold. Respond well. If they aren’t a fit for this deal, put them in your database for upcoming deals. If you are getting a lot of buyers wanting seller financing, maybe it’s worth taking some of those. Don’t get stuck in your model. Be flexible.
Not Analyzing Pricing Well
Whether it is greed or being out of touch, many resellers just seem to be asking for a lot today. They aren’t doing the math as a wholesaler, and what it will take for an other investor to acquire, renovate and exit that deal. Some ‘wholesale’ deals are being priced like new construction. Think about it. If someone can build a brand new place on a similar lot for what you are asking for a beat up rehab project, why would they? Especially if you are demanding all cash?
Not Knowing What You Are Selling
It is completely possible to flip houses sight unseen. Yet, if you don’t know the condition or what’s on title, you can’t price it right or pass that info on to your end buyer to make a good decision or offer. The more you can get a handle on repairs and the equity, the better you can present to your buyers, de-risk it for them and streamline the resale transaction. All with far less likelihood of the deal blowing up.
Getting Cut Out of Deals
Unfortunately, there are a lot of greedy people out there. Both Realtors and investors keep finding buyers and sellers try to cut them out. Wholesalers are especially vulnerable when trying to do assignments or simultaneously closing using the buyer’s funds. Instead, do two transactions using transactional funding, so you become the owner and are the only path for them to get the house.
Not Empowering Your Team
If you are hiring people, and then micromanaging and spending more time managing than it took to do the job in the first place, just do it yourself. Save the time and money. Of course, it is far smarter to hire help and then get out of their way so they can do what they are the experts at.
Steve Jobs said. “It doesn't make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.”
"I want thank you for the excellent service I received from Best Transaction Funding.The quick response I received from your company from the beginning of the transaction and to the end was unbelievable. I also want to give a special compliment to you as well. You went to great lengths to keep me informed and gave my title company all the information they needed to complete a successful closing. I cannot express how thankful I am. Such service builds great working relationships. I will definitely recommend Best Transaction Funding to all my fellow investors. Thank You."
- Frank Olaitan, Real Estate Investor, MD
"I can't thank you and your company enough for providing funding for our latest project, and right at the last minute. You came through with funding in less than 24 hours and coordinated with the closing agent and attorneys like you had been involved with our project the entire way. I'll know exactly where to call for the funding we'll need for our next project."
- Dave Pricken, Real Estate Investor, NJ
"Thank you so much! I just had a talk with our Realtor on both properties and told him amazing things about your company!... Normally I rehab the houses and re resells them. I just don't have the patience for that work anymore. This [transactional funding] is such a better way for me and less stress."
- Steven Kupecz, Real Estate Investor, TN
"We want to thank you for the exceptional customer service you provided. No one comes close. We had contacted a competitor the same time we contacted your company. Your company responded with in a few minutes while the competitor has yet to respond weeks later even after multiple phone calls and emails. Thanks again for the unmatched customer service."
"We had looked into several transaction lenders for a couple properties we were trying to flip. Your company was the most responsive and had the best pricing. Even though we had logistics issues with the B/C lender, your company acted very professionally and handled our requests beyond our expectations."
"Thank you for your commitment to an excellent customer experience."
- Phoenix Properties, LLC, Ronald Destefani, Investor, PA
"I was studying on how transactional funding works and you guys had the best and most thorough explanations posted so I could fully understand the details in back to back closing. I'd already started setting everything up but your video confirmed that I'm on the right track."
- La'Donna Turnipseed-Scott, Investor, LA
"....a few months back, I happened upon a video, on your site, regarding the use of transactional funding with Hud properties; and I found myself replaying the video over and over because of the value that I saw in the message...it actually explained the process, step-by-step on how to submit a Hud deal by using transactional funding. Once I completed the video, my initial response was to take immediate action by duplicating what I had learned from the video into real time. So I did some research on properties in a market where I knew I had buyers; and put together a hud deal. I then located a realtor able and willing to submit my bid online and within a couple of days, to my surprise, received a call telling me that I had won – my very 1st Hud bid."
"To you I say, ”KUDOS to Best Transactional Funding and Thank you for providing the education and services to Real Estate Entrepreneurs like me. Please keep up the good work!'"
- T. A. Davis, Investor, NJ
"You each deserve high marks for your wonderfully quick response time to each of our questions and requests! You hit home runs with us! Your application system was easy to use. Our deal met your qualifications and every time Rob Kozak or any member of Mystic Properties, LLC phoned, we received a "real" person dialing back to speak with us.
Your patience and persistence were exceptional in dealing with our business interests. Thank you for such great customer service! We look forward to working with your staff, again, in the future. We like referring people to you, as us, our team would have missed-out on an excellent earning opportunity.
Your help negotiating with our title company made our back-to-back deal, finally happen. People noticed on settlement day how effectively and efficiently your part of the transaction was organized and executed. Again, thank you for truthfully being the "BEST" at what you do!"
- Diane McAdams, Mystic Properties, LLC, Real Estate Investor, Pennsylvania
"Boy, you guys are impressive! I can’t thank you enough for scrambling and getting my deal done at the last minute like that. You and your team were awesome!"
- Donna Bauer, The NoteBuyer Inc., Real Estate Investor, OH
"Thank you so much for working so diligently with me. Your services really are the "BEST". I look forward to working with you in the near future!"
- Ericka B., Real Estate Investor, CA