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:
Speculative comps
Comps that have nothing to do with the subject property
Low rehab costs with generic contractor quotes
Incorrect house or lot sizes
Lack of pictures
These are some of the more common issues we see. The problem is, many new Buyers will take wholesalers at their word. Now, I will be the first to tell you to tell your Buyers ‘do your own due diligence’ but that is not a license to take advantage of them if they are new Buyers. It is key to take care of your Buyers and set them up for success. Using real and not speculative information is a solid way to do this.
Remember, your buyers are trusting you with their hard-earned cash. Or if they have a lender, their lenders hard earned cash. Showing respect for that money is important to your success. A lack of sincerity will be detected by new Buyers but unfortunately, sometimes the urge to just ‘get a deal’ wins out over logic. Don’t take advantage of that. They will thank you later and want to buy from you again.
New Buyers are a great opportunity to sell deals to as they are always showing up on the market whether it is up or down. As a wholesaler, take advantage of this by giving them fair and reasonable deals. Win-win deals are always a ticket to your success. Leverage it!
Frank Iglesias is an active wholesaler, rehabber and landlord in the Atlanta metro area who enjoys creating win-win real estate transactions. Leveraging a mostly virtual staff, Frank has taken working with virtual assistants (VAs) to a high level where they do the majority of the work necessary to run his real estate investing business. As a result, Frank is able to do less while accomplishing more so he has the freedom to spend more time with friends and family and teach others to do the same. Frank is also the leader of the Atlanta Wholesalers Group.
