Ok so this post is mostly just some feedback to other wholesalers, investors, investor friendly realtors and the general real estate investing community out there.
It seems that the last couple of years the real estate market is back on track and the “wanna be” investors are coming back in droves.
They attend a weekend seminar, and think they know everything about real estate investing. The worst part is if their at a wholesaling event, the speaker will likely tell the attendees…”If someone asks if you’re a cash buyer, say yes.” Because you yourself don’t have to be a cash buyer, as long as you know someone who is.”
I hate this advice. It wastes a lot of time.
Now, everyone and their mother claim, “I’m a cash buyer.” When in reality they do not know what they’re doing (which is ok, if you’re starting out, we all started out somewhere) The worst part is they do not try to actually close the deal and/or find the cash buyer.
If you’re a wholesaler reading this, and you say, “Yup, I’m a cash buyer I can close quick.” And then you don’t, and its all lip service, cut it out!!! Stop misrepresenting yourself. Be honest. Say, “I’m a wholesaler and I’ll do my best to find a buyer for this.” Which brings me to my next point. Obviously, we cannot close all of the deals (though you better give it everything you can to close it) but if you say “I’m a cash buyer, we will definitely take this down.” And you call one person and the buyer declines and that is the extent of your effort, just get out of the business. This may sound a bit overboard, but my point is this. If you overpromise and “talk your game” as if you know what you’re doing and can move deals and do not do enough, you’re kidding yourself, the other wholesaler, the seller, and potential buyers. Examine why you are in the business. Do not be a chronic time waster for everyone. It serves nobody.
I realize we cannot possibly sell every wholesale deal we come across. One thing about me, if a deal comes across my plate and it looks good, I will literally do everything I can to sell the deal. Even if 34 buyers say no, I will still give it everything I have to sell the deal. (Sometimes we may have to reduce the price, etc and make sure its a legit wholesale deal) but you see the mentality here. If one buyer declines the deal and then we move on and tell other wholesalers, “yeah man I’m closing deals, My buyers are burning a hole in my pocket because they’re asking for deals” Its usually those that talk the most do the least. I remember from the movie, “American Gangster with Denzel, he told one of his family members who was being loud and extravagant….”the loudest person in the room is the weakest person in the room.” Anyway my point is, if you talk a big game, “we will definitely buy this, sometimes we close on the deals, sometimes we wholesale them, etc.” Then do everything in your power to close them or to find a buyer.
Whatever happened to people honoring their words? If you say something, and don’t follow through chances are your kidding yourself into thinking you’re an A player.
I run into wholesalers all the time, that will tell me, “wow, I love this property, we are looking for this exact property and the price is right. I will definitely take this down” And then crickets for days. Now, I know sometimes the deal doesn’t fit the investors criteria, but often times what I have found is that there are just too many weak, talkers in the game. If you say something, commit and follow through. Don’t think about what excuse to use, be diligent and do everything in your power to come through. If you’re reading this and you have these tendencies, stop!!! You’re not doing anyone any good including yourself, your family, the investing community.
We are here to help sellers and buyers and put deals together. When a motivated seller contacts you and the deal makes sense for both sides. Help the seller out! Do everything you can to close the deal (morally, legally, ethically of course) Seriously though, its not just about you. We are helping out sellers out of tough times and helping buyers transition their money from flips into new ones and helping out the economy employing attorneys, title companies, contractors. We make a large impact on the community. We are the underground for the investing community and make things happen. We are deal makers! Rise and grind and make it happen!
Here is an example of what not to do:
Me or my sales guy: Hello, thanks for inquiring about the property, how can I help?
Wannabe: Calling about the x property, I love that one, I definitely think we will take this down. We are cash buyers and do a lot of deals. We are looking for one just like that, can we see it?
Me or my sales guy: Great! yes, Ill get you in, can you send over pof?
Wannabe: Whats pof?
Seriously! You just said all of that and when asked for a pof you ask “what is pof?”
Or let’s say they do send a pof and its one of those fake printed up hard money general letters, or a pof that’s one of my buyers lol.
Here is the point I am making. We all start out from scratch and you do have to fake it til you make it. But remember this. Do EVERYTHING you can to make it. Do everything you can to make it. Do not be another talker without backing it up. Worst kind of person there is in the game. Call 50 buyers, put up 50 signs, go to 50 different networking events, call everyone you know to sell the property. If that doesn’t work, do 50 more things until you do sell it. Be that person.
Truth is, in the Chicago market, I close many, many deals. Many wholesale deals, co wholesale deals, rehabs, rentals. My team is always cranking it out. I’m blessed to know many people here in the market and have great relationships with pretty much all of the top wholesalers, rehabbers and landlords. And my partners know that if they send me a deal and the numbers make sense, we will do everything we can to help them sell it. In turn, we help the seller, the buyers, and ourselves. Everybody wins.
How do we do it? Simple. We are diligent. We work really hard to make it happen. We focus on the data, not the drama. A lot of gurus sell you on the fact that this business doesn’t take any work and push button profits and that isn’t necessarily true, but that’s what people want to hear. The truth is, you have to work on the business, work on your relationships, work on yourself. It never ends. By the way, if you have any co wholesale deals in Chicago or anywhere else send them our way at email@example.com.