Author Archive
Wholesaling Land – A Profitable Game to Explore
Posted on October 3, 2017 byLand is a beautiful thing, regarded by many as something of value in many places. Similar to home ownership, land ownership is viewed oftentimes as a significant asset that increases in value over time, in particular in areas that are more developed or developing.
It should come as no surprise then that wholesaling land can be just as effective as flipping a house. But there is more to land than just dirt. There are three primary categories to consider:
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Undeveloped raw land – these are lots with no utilities of any kind and has never been built on
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Developed land – these are lots with utilities in place, may or may not have ever been built on but has been recognized by the city as at least ‘somewhat ready to go’ for construction
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Teardowns – these are lots with a house on them that is no longer habitable or perhaps is habitable but due to property values, age of home or other variables is better suited for demolition and new construction Read More→
Coming Back Home… to Wholesaling!
Posted on August 7, 2017 byYou have seen the infomercial… it goes like this…
- Start with wholesaling
- Make some money
- Start Rehabbing
- Make Bigger Checks
- Retire
There are a few variations on this theme, so allow me to share a different spin that I and a few colleagues of mine have explored. It looks more like this…
- Start with wholesaling
- Make some money
- Start Rehabbing
- Make Bigger Checks… sometimes but not always
- Quit working so hard and go back to doing some wholesaling.
So this is not exactly what we are doing since we are also doing new construction but remove the new builds from the equation and it is pretty close. So what’s the deal? Read More→
How to Be a Successful Wholesaler
Posted on July 10, 2017 byWholesaling is probably one of the easiest, yet most deceiving aspects of Real Estate out there. There is no shortage of people sharing how to be a wholesaler from online courses to packages to free videos. When looking at all the information available on the subject, how does one know which information is correct (including this article)?
As someone who has run a wholesale group in our market now for over four years, I am going to share with you the qualities required to be in my opinion a successful wholesaler. Our team has the privilege of being well connected and knowing most of them in our market. Having wholesaled tons of properties and observed others doing the same, here are the qualities you will want to have to be a successful wholesaler. Read More→
What is Massive Action?
Posted on June 5, 2017 byI recently read a book by Grant Cardone called the 10x rule. I am rereading it again now because it made such a strong impact. I highly recommend as soon as you are done reading this article, you buy it immediately. I do not get any kind of credit for it. It’s simply a must read for investors, in particular wholesalers.
Wholesaling is a massive action business. It takes massive action to keep the lead funnel going which is what powers the entire business. In his book, Grant talks about four levels of action to give clarity as to what your goal should be. I paraphrase them below. Read More→
The Power of Networking
Posted on May 1, 2017 byNetworking is perhaps the most underestimated resource every single investor has. I am constantly amazed at how in a world as interconnected as it is, I am constantly seeing how little we leverage each other to get more deals done. I sat recently and wondered why and came to some conclusions:
- Perhaps we are too ‘competitive’ and don’t want to share our deals
- Perhaps due to some less than ethical behavior, we keep our deals to ourselves and as a result have to work harder to get them moved
- Perhaps we had a bad experience in the past with another investor that has us playing ultra conservative
- Perhaps you believe ‘everyone else’s deals are bad’ therefore you must find your own (common issue)
- Perhaps you have know idea how big your market really is
- Perhaps you are too married to social media (most people who are Buyers want a phone call!)
There are probably several reasons we can come up with that aren’t written down here. The point is all of these above and more keep us from simply reaching out to others, much less doing business with them. Take for example social media. Read More→
When a Buyer Provides Feedback… Listen!
Posted on April 3, 2017 byThis month’s tip is so critical to your success. There will be many times when you put deals out and instead of getting an offer, you get feedback from your Buyer. If it is constructive, and oftentimes it is by people who sincerely want the property, listen! Buyers, especially experienced Buyers can provide a wealth of knowledge for you on your deals. They oftentimes have the scars of rehabbing and know many things you may or may not have thought of. You want to take advantage of this information!
Some things they may share with you:
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What is the real cost of the rehab (very common) to attain the ARV advertised
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What the actual ARV for that area is. Remember, if they work that market hard, they oftentimes know several fine nuances that wholesalers rarely consider. Read More→
Stop Assuming People Will Not Take Your Offer Or Counter!
Posted on March 6, 2017 byThis is probably the biggest tip I tell wholesalers all the time. When you are interested in a property, make the offer! That’s it!
It’s such a simple tip. See property, have interest in it. Make an offer. Yet for reasons continually inexplicable to me, too many investors simply don’t make the offer!
I recently sold a deal that I got seven offers on within 24 hours. The irony is I had it at a higher price in purpose for a test I was running and no one offered on it. When I lowered the price, all of sudden everyone was interested. When I sold it, several of the others said ‘that was a good deal!’ To which my response was, ‘it was but you could have had it sooner had you just made the offer.’ The look on their face was shocking as if to say ‘you mean we can offer a bit less than the asking price?’
Let’s clear this up right now… Read More→
Hungry Buyers Should Not Equal Taking Advantage of Them
Posted on February 6, 2017 byI have heard it 100 times over…
That wholesaler, fill in the name, totally ripped me off. False rehab costs, false appraisals, false inspection reports, false ARV…and on and on.
Last month we talked about experienced wholesalers. This month, let’s flip it over to the new Buyers. They are new, excited and hungry. And they are prime targets to get taken advantage of by some wholesalers. Unfortunate as it is, there are wholesalers that are less than credible. I have seen quite a bit of less than ideal advertisements. Some examples: Read More→
Would You Close on Your Own Deal?
Posted on January 9, 2017 byAs we get ready to start the new year, I would like to start with a basic question…would you close on your own deal?
I am an investor who loves wholesaling so I ask this question with sincerity. Would you close on your own deal that you send to your Buyers? Seriously, assuming you had the money in cash, would you?
If you have to think about the answer, then is it really a deal you should be sending out to your Buyers? Of course one can say ‘well it is not an area I invest in but others do’ and I would respect that of course. However, what I have found is a lot of wholesalers are not confident enough to where if they had to close on the deal, that they would actually do it.
In which case, I ask, why would you present that deal to your Buyers? Read More→
Appreciation – Wholesaler Friend or Foe?
Posted on December 5, 2016 byOne of the things I have seen a lot lately is wholesale deals banking on appreciation. And as a Buyer myself, I can tell you I love appreciation! Appreciation can cover a multitude of sins.
The problem is they are still sins and as a wholesaler, it is best to be aware of them if you want to move your deals! When running comps for your Buyer, the safest route is the tried and true MLS. Not Zillow or Trulia or some of these other online sites that can give snippits of value to the market but the good ol’ MLS.
One key piece to help avoid the appreciation challenge is to simply ensure your comps are current as of today. Not what you think it will be in three months or six months no matter how hot it is. Only today. Why? It keeps your Buyers safe. This is very important. It also keeps your numbers strong for your offers and negotiation so you can make sure you get a deal that makes sense. Nothing is worse than sitting on a deal you need to move quickly only to find it never had a chance because others did not see the value you saw. Read More→
Emotion – The Deal Killer
Posted on November 7, 2016 byEmotion is a tricky thing. We all have them. We experience them every day whether positive, negative or even indifference. I remember when I started investing being taught to never ever, EVER become emotionally attached to a deal. It sounded easy enough and as head knowledge it is.
But then a funny thing happens…people and or money become involved!
Oh yes, emotion can make the smartest of investors make the most let’s just say ‘bone headed of decisions’. I will have to admit, I have fallen prey to the power of emotion on a couple of emotions. Never underestimate this factor when doing deals!
Let’s examine both of these avenues in depth so you can see how powerfully they can work against you, sometimes without even realizing it.
In terms of people… Read More→
Momentum – How To Get It Right Now
Posted on October 3, 2016 byThis month we are diverting to another subject that is fresh on my mind. The concept of momentum.
Momentum is something we all know can be very positive but I believe is greatly underestimated. When I ride my bike I find some striking analogies to business. Riding a bicycle, whether rode or mountain involves momentum in a major way. It’s the difference between going up a big hill or walking it. It’s the difference between clearing a dirt ramp or rolling over it. It’s the difference between keeping your rhythm going or speeding up and slowing down constantly which is usually much more exhausting.
The same things apply in business. As a wholesaler, you have heard it said that you must always be marketing. I can tell you it is much, much easier to keep your marketing going than to allow it to stop and then start back up. On a bicycle, when I see a hill coming, I tend to attack it fast which makes it much easier to get to the top. Business is no different, when you see an issue coming up, hit it and hit hard with such determination that you will find solving problems becomes much, much easier. Your brain is more open. Ideas flow more freely. And you are much more likely to succeed in providing superior service to whoever you need to work with! Read More→
