Over the past 14 years I’ve been investing in real estate and I’ve closed over 1000 deals, a lot of them were wholesale deals. During those 14 years I also have spent eight years teaching others how to create wealth through wholesaling (no money down real estate) but before all of that I was a beginner at wholesaling real estate.
I struggled with a lot of the things new wholesalers face when first getting their start in real estate so I get it. Really, I do. I understand wanting to just jump into the action because of pure excitement but then having problems getting your real estate investing business off the ground but do you know what I learned?
The right education AND the right mentor can help new real estate investors overcome and even avoid a lot of the issues new wholesalers run into. So today I’m going to go over a few of those issues and most importantly, how to AVOID them:
Mistake #1: New real estate wholesalers focus on the wrong activities!
This is HUGE when it comes to new real estate wholesalers. They take advice from lazy real estate gurus or people with little working-knowledge of what it really takes to make it in the current real estate investing business. These new real estate wholesalers are directed towards choosing the path of least resistance. They choose all the easy and non-needle moving activities, i.e. designing business cards, perfecting the business logo designs, or adding little details to the real estate investing website.
Then they start on building their power team like finding a real estate attorney or a real estate investor-friendly title agent. This is all important but it’s not the first thing new wholesalers should be doing…the first they should be doing is learning the real estate investing language! And how does a new wholesaler do this? They start finding deals and building a cash buyers lists! The power team stuff will come later, the most important thing is finding a deal and getting the ball rolling.
Mistake #2: New real estate wholesalers go to real estate agents for advice.
Don’t get me wrong, real estate agents have helped me grow my real estate business immensely but that’s because I’ve found the right ones to work with. New real estate wholesalers will go find their cousin or friend that happens to be a real estate agent and start asking them for real estate investing advice. Except, those people might not know anything about real estate investing and especially creative real estate investing. They’ll shoot down the new wholesaler that’s already a bit hesitant and tell them wholesaling is illegal and not a good idea at all!! But they’re wrong, wholesaling is 100% legal and new wholesalers shouldn’t let these people shake their confidence. New real estate wholesalers need to focus on getting advice and education from people that are experts in wholesaling and creative real estate!
Mistake #3: New wholesalers try to give motivated sellers a lesson on wholesalers.
This is probably one of the most common mistakes I see!! STOP trying to explain the wholesaling process to motivated sellers because here’s the reality: it’s not a concept you can wrap your head around in a few minutes. My recommendation is that new wholesalers do one to two things. Option one is making a short presentation and explain to the motivated seller that you’re buying their house for cash and that there are multiple things you may do with their property. Option two is don’t explain it at all! Tell them you’re making an all cash offer and this is when we’re closing.
If you start explaining you’re just going to get stuck in a MASSIVE rabbit hole of questions and chances are they’re going to shut you down and you’re going to lose the deal.
At the end of the day, if you want to be a successful real estate investor then don’t do these things!! Getting started in wholesaling or even just in real estate investing isn’t going to be a walk in the park but I want to help you avoid the major mistakes so get smart and stop doing these things!
Take care, comb your hair.
PS: Check out my 30 Day Deal Challenge and learn how to CRUSH wholesaling!