Taking action (Part 3 of 7)
While each niche within real estate investing has unique risks and challenges to overcome, the biggest hurdle is in your head. You must be willing to implement the strategies you are reading about or listening to. To do this there is no magic bullet. You just need to start.
For me it was after about 6-8 months of continuous learning. I came home to look up something I’d heard on a podcast – like every other night for the last several months. I sat there staring at the results of my search and said to myself, “I just need to do this.”
The next day I was compiling a property list from an online source and getting my first mail piece ready to send. It would be roughly 6 more months before my first motivated seller would contact me. But I learned very quickly this wholesaling gig could change our lives.
Now there are those I encounter on various sites that have no hesitation in telling wholesalers they are stealing from people in distressed situations – unfortunately, I know some wholesalers are less than honest in how they handle a transaction – but I would argue there are plenty of licensed agents in the marketplace that have less than banner integrity as well. Those people are not representative of the majority of agents anymore than a dishonest wholesaler is representative of all wholesalers.
Personally, I’ve found that wholesaling helps everyone involved. Let me provide two examples of how I have seen this play out positively:
- A seller contacted me from a postcard I had mailed him. He explained to me in a timid voice that his house was in poor condition, very poor condition. Multiple agents had no interest in listing his distressed property. He had not performed work prescribed by local code enforcement and now they had scheduled a court date. He had no funds to fix this property or deal with the ramifications of the pending court date. We met at the house and did a walk through, he being timid and sheepish the entire time. When we returned to the street to talk more about the deal. He puffed up his chest got up in my space (I’m a personal space advocate) and he said something along these lines, ‘You’re different than every person I’ve had look at this. You didn’t make me feel bad about the condition of the property. Thank you.” We agreed on a price quickly. I wrote up the contract and had it sold to an investor the next day. We closed in a couple of weeks. Since then the buyer has fully renovated the property. So here’s the point with wholesaling, everyone won! The seller won, he got what he wanted. I won, I collected an assignment fee. The buyer won, he got a great property he’s making money on. The neighborhood won, no more eye sore. The city won, tax assessment will increase and code enforcement can move onto another target.
- Another seller I marketed to had listed her property three times, with three different agents. All three of them did little to nothing to market her distressed property. When she reached out to me she had an attitude of ‘you’re not going to help me.’ We talked through her experience on the phone and I explained to her she had no obligation to accept any offer I made. She agreed to meet with me and she had a few family members come along (I think they were back up). They hit me with a barrage of questions. As I explained the condition of the house and the process of working with me they calmed down. After they huddled together for a few minutes she was ready to move forward with a contract. 13 days later we were closing on her three times listed property. Refer to above for the list of wins!
Allow me to pause facetiously for a moment. So do wholesalers provide value to the marketplace? Do wholesalers help distressed homeowners? Can wholesalers connect investors with discounted properties? Have communities been improved because of wholesalers? Does the effort of wholesalers increase property values? Where do wholesalers buy those insanely stylish capes? OK, to be fair not all wholesalers wear capes, but maybe we should.
The point here is that when you start taking action make sure you find ways to get wins in whatever niche you are pursuing. If you do this you’ll find success and those around you will want to be a part of what you’re doing.