A Guide To Reach The Top Spot On The Buyer List Of Your Wholesaler
From Darlene Root…
In one of my previous bog posts, I talked about how to spot a fake investor buyer for your wholesale deals. This time, I’m going to talk about how to reach the top spot on a wholesaler list. This is really important for those investors who are looking for rehab deals.
I have found local investor meetups to be a learning opportunity. Especially the interactive sessions. You get to hear about other people’s experiences, successes and losses in the market. It helps you learn and be better at your art.
With all the local meetups I have attended so far, I have learned that buyers are somewhat always complaining about the wholesaler. There are many reservations like, “I got scammed” or “I get spammed by my wholesaler for information regarding crappy properties.”
As a wholesaler and rehabber, I can tell you that cultivating solid relationships with cash buyers is vital to a wholesaler’s business. Though, there are always a select few who tend to get the special treatment.
Now you may be wondering, who are these “chosen ones?” Well, anyone can get the special treatment, if they have certain qualities. So, let me give you a few tips on how to get the #1 spot in a wholesaler’s buyers list.
I Didn’t Mean That
First, let me tell you that one of the things that will tick off a wholesaler is giving them a wide range of investing criteria, and then when they find you something, you blow them off by saying: “that is not the criteria that I am looking for.” Get specific and “mean what you say.”
Here are some ideas for your criteria:
- Your willingness to invest in select areas
- Your preferences regarding specific return rates
- Price range
- Type of real estate: single family, multi family, commercial, vacant land, etc.
When you give your wholesaler a clear idea of what you are looking for, they will provide you a more suitable investment property.
Be True to Your Word
The most important thing is to go through with purchase. If the wholesaler comes through and provides you a perfect match for your requirements and you fail to purchase, it will automatically land you in the “hall of shame” with that wholesaler. And, staying true to your word and making the investment will help you become one of the “chosen ones.”
Your reputation matters a lot. The market is not always profitable and you may end up investing in a property that gets you to a break-even point, at best – but backing out of such a deal is going to make you unreliable.
It is hard to find a good wholesaler. Sometimes, profit has to be given a slight backseat to integrity and word of mouth, which will prove highly beneficial in the long run. A person who backs out every time there is a minor risk of loss will not be able to create good relationships with wholesalers.
Types of Cash Buyers You Should Not Become
There are a few types of buyers who are particularly avoided by wholesalers for good investments. You do not want to be such a buyer. So, I thought of introducing you to such buyers:
1. Mr./Mrs. Big Shot
We come across people who approach us saying, “I’ll buy anything you have on offer on.” This is just big talk and nothing else. These types of customers end up in the worst of experiences, and all wholesalers avoid this type of cash buyers. If they are not specific in what they want, they are not really investors.
2. The Anti-Earnest Money
Some buyers come to you as big clients wanting to close on properties in two days. They don’t believe in investing earnest money. Well, this is again something that usually ends up being a disaster, because they end up stalling the wholesalers for weeks.
3. The One Who Asks for a Favor
As I said earlier, real estate is all about cultivating relations. You don’t go to a wholesaler, whom you have not met before, and ask for favors. It’s a big turnoff. So avoid it at all costs.
It’s important for me to say that my guidelines and examples are not to undermine cash buyers. In fact, I feel that cash buyers and wholesalers should cultivate better relationships.
You must specify your requirements, stick to your word and always follow through. This will definitely be beneficial for both parties.
Talk to Me
Got any questions about this post? Talk to me in the comments section below.