Who exactly are your wholesale buyers? As you develop the mindset of a true wholesaler, you'll want to go fishing for
certain types of buyers for certain types of deals. So let's talk about marketing your business to prospective buyers!
When you start a project in any endeavor, there should be an end in mind. In this case, that end is our buyer, who is
also our payday. We're talking about making sure that when we'vedone our homework and have a great deal tied up, that
payday is right around the corner.
For most wholesalers, this part of the marketing process is the most fun when you're dealing with the right individuals.
There are precautions that you will need to take, and we will more than adequately discuss all of the pitfalls that you
want to avoid in dealing with buyers. Other than receiving the funding check with your name on it, just the process of
interacting with buyers should be the next most enjoyablepart of wholesaling houses.
True success in real estate starts with finding great deals. It doesn't matter if you personally have the best financing
in the world set up - if you paid retail or close to retail value and it won't generate cash, then you have gained
nothing! Rental properties can generate revenue using private/hard money lenders, but when you're in a property for
around 50%-60% of the after-market- repaired value (ARV), it's a no- brainer. Is a 100% financed VAloan at 7.25% better
than a 50% loan financed at 12%? It took all of about 0.3 seconds for a hard money lender to approve that loan versus
the hoops and time involved to get through the VA paperwork.
Time is money. Speed of money, or having access to quick cash, is the key to getting deals done. Or, he who hesitates
(and has to wait on financing) loses. You probably have either been the real estate investment buyer that we're looking
for, orat the very least you need to put yourself in the shoes of a savvy real estate investor who buys properties for
investment purposes. The success that you will have in wholesaling is largely dependent upon how well you can get inside
the mind of your buyer and know the characteristics that he or she looks for in a deal.
It is so much fun to work with your buyers because they are mostly like you. There are too many people out there who are
negative. They stereotype so much of real estate as beingcrooked or illegal just because it doesn't fall into their
frame of reference in real estate.
Hopefully you are not hanging around those types of people, and are avoiding them like the plague. You should be
associating with like-minded people who share your positive mentality.
The buyers you like to deal with should truly appreciate your services for what they are. They should be people that
don't beat your property down with negatives, and by all means, if they balk at youmaking a buck or two (or a few
thousand) then lose their phone number!
For example, if you're walking through a house with a new buyer and they start off by bad-mouthing every inch of the
house, thinking that the more they talk it down, the more you'll reduce the price, warning lights should go off in your
head. Stop them before they get started. T ell them, "I know what it needs. Just look at it and tell me if you can meet
my price. " If they don't want to play nice, then take it awayfrom them. "Obviously, this house isn't what you're
looking for. I'm sorry to have wasted your time. " And walk them towards the door. A good deal is a good deal. If one
investor doesn't want it, someone else will. Remember this word: N-E-X-T!
The great thing about working with buyers is that a lot of times, you really are like- minded individuals, especially
when you start negotiating (if you even have to negotiate). It's not like you have to beat around the bush a lot and
beevasive on some issues. You just put on your best poker face and have fun with it.
Keep in mind that these are the people who butter your bread, so to speak, and you want to treat them with extra special
care. T ake care of your best buyers. Buy them lunch, play golf with them, send Christmas gift baskets, and so on. This
may sound a little quirky to you, and it may even seem like it should be just the opposite way around, with them
treating you like the king, but just take heart and know that it isdefinitely to your advantage to groom your buyers and
get to know them personally.
You see, many of the buyers you may work with can do exactly what you are doing and can probably teach you a trick or
two. So why in the world would they pay your price and not balk at you making some money? The answer is time! You come
into all sorts of buyers and there is probably an elite group of individuals in your area that have pockets as deep as
the ocean or have banks lined up just begging toloan them money for real estate.
In Las Vegas, the very elite gamblers are called "whales, " and if that casino lands a whale, then they can make
millions over the long haul. The same scenario exists in real estate, and when you hook up with a real estate whale and
have a personal relationship with this person, your monetary success is all but guaranteed.
Whales will not make foolish decisions. They didn't get towhere they are today by not being prudent with their money, so
don't waste their time with marginal deals. When dealing with a whale, always, always back up what you say you will do
with action, and follow up consistently. Whales may not have the time to look for deals, but they sure know how to
evaluate the worthiness of the deal that you're offering, and that is all you could ask for.
Think in terms of your list of buyers being your personal bank. You can write a check on any property deal that you
find,but if the bank won't cash it, then it does you no good. Your bank of buyers is looking for properties with certain
criteria, and when you find the right combination of price and terms, you then have access to the money. When all is
said and done, this is what wholesaling properties is all about - making serious money!
The personal relationships that you cultivate with your buyers are everything. We've discussed some of the
characteristics that you need to look for in your buyers, butnow we're going to get a little more specific and discuss
in particular some of the items you should use to qualify your buyers as either real players, lead-by-the-hand
potentials, or those who will waste your time.
Any buyers with characteristics that are less desirable than the three listed below simply are not worth your time to