Most real estate investors know that working with wholesalers can be a great source of potential deals. Wholesalers have been known to be a great source of very lucrative deals.
Unfortunately, working with wholesales is not a walk in the park. You have to work it if you want to find killer deals. As you work with wholesalers, you will soon realize that how you deal with one wholesaler isnâ€™t necessarily the way you deal with another.
Types Of Wholesalers
These are seasoned real estate wholesalers who have been wholesaling for a long time and are seasoned real estate investors. Their primary business is wholesaling real estate and sometimes they dabble in other deals.
Itâ€™s important that you build a solid relationship with career wholesalers because they could be an excellent source of deals for you. These types of wholesalers are well financed and usually take the best deals for themselves. The bad news is that these types of wholesales are a little challenging to work with.
Ladder Climber Wholesalers
This type of wholesales are either looking to get their feet wet in real estate investing. Wholesaling is a low risk form of investing so beginner real estate investors. there are two ways that you can work with these types of wholesalers. One, you can use them to get great deals or two, you can source for deals from them as well as forge some kind of a mentorship relationship.
How To Work With Career Wholesalers
The best way to work with career wholesalers is to get them to trust you. Hereâ€™s how you should approach them:
Build A Rapport
It takes a fair amount of time to develop a relationship with the career wholesaler. You should consider talking to them in a relaxed environment. For instance, you can share a few beers after your REIA meetings and build your relationship from there.
If nothing happens during the first month, you should not get upset or anxious. Forging a relationship with your career wholesaler doesnâ€™t happen instantly so donâ€™t expect them to throw a few deals your way just because you had a few beers.
Getting On Their â€œA Listâ€
These types of wholesalers probably have their own real estate investors in mind when they get their hands on a deal. So for you to get on their â€œA listâ€ you will have to be a little patient. However, you shouldnâ€™t give up.
Be Prepared To Be Rejected
When you approach this type of wholesaler with an offer you know you flat out have, it might get rejected. You should not get upset if this happens. Instead, you should rework your numbers and see if you can match theirs. If the numbers donâ€™t work for you, do not do any eraser math or try to manipulate the numbers to work for you. If they donâ€™t then they donâ€™t. Try next time.
Be Flexible And Creative
As earlier mentioned, you can rework your numbers to match what the wholesaler wants. So you have to be flexible and creative while still sticking to the 70% rule
How To Work With The Ladder Climber Wholesaler
The way you deal with this group of wholesalers is different from how you deal with career wholesalers. Hereâ€™s how you should do it.
Meet Many People
The key here is to stick around after your formal REIA meetings and socialize. You are likely to meet all kinds of people from wholesalers to real estate agents.
Be Courteous To Everyone
If anyone shows an interest in the business, regardless of whether they are young or still learning the business, you should always be nice to them. You might end up working on a really great deal with them.
You should have an eye for someone who is ambitious and has the spirit to become successful in this industry.
Keep In Touch
When you give out your business card and tell people to call you, make sure you mean it. you might just a call that will land you a good deal.
Never Turn Away A Good Deal
You might be engaged with other deals but if a deal has good numbers, always take it up.
It Shouldnâ€™t Always Be About The Money
If a newbie comes up to you asking for help, you should help where you can. Sometimes itâ€™s not always about the money but it is about helping others to succeed.
As we have seen, every wholesaler requires a different type of approach but when investing in real estate, your overall approach should be the same.
If youâ€™ve come this far, please leave a comment below and tell me what you think. Do you have any methods that you think work well with wholesalers?