Set Yourself Apart From Other Wholesalers

[Danny Johnson]

I got another call from a new wholesaler the other day. He was asking what type of property I like to buy and whether I could pay cash.

I used to spend some time with these callers and give them detailed information about exactly what I was looking for: what parts of town, price range, margins, amounts of repairs, etc. We would have a long conversation most of the time and I would look forward to working with them. But, the reality is I would only hear from about 1 in 50 ever again.

The truth is that most new people are taught to start wholesaling as they can learn the ropes and make money, without any of their own money. They can gain experience with much less risk. The problem is that they spend too much time working staying busy, doing things like building buyers lists, than actually LOOKING FOR DEALS.

My advice is to learn how to find motivated sellers and then spend your time looking for and marketing to motivated sellers. Don't occupy yourself doing things that are unimportant just so that you feel as though you accomplished something. Most of us have fallen into that trap and still do. We just always work at it. It is the 80/20 rule. 20% of what you do, accomplishes 80% of the results.

If you focus on that 20% you will get to where you want to go much faster than those who don't.

Stay focused, and make sure you are focused on the right things!

[J. Lamar Ferren]

Originally posted by Danny Johnson:

I got another call from a new wholesaler the other day. He was asking what type of property I like to buy and whether I could pay cash.

I used to spend some time with these callers and give them detailed information about exactly what I was looking for: what parts of town, price range, margins, amounts of repairs, etc. We would have a long conversation most of the time and I would look forward to working with them. But, the reality is I would only hear from about 1 in 50 ever again.

The truth is that most new people are taught to start wholesaling as they can learn the ropes and make money, without any of their own money. They can gain experience with much less risk. The problem is that they spend too much time working staying busy, doing things like building buyers lists, than actually LOOKING FOR DEALS.

My advice is to learn how to find motivated sellers and then spend your time looking for and marketing to motivated sellers. Don't occupy yourself doing things that are unimportant just so that you feel as though you accomplished something. Most of us have fallen into that trap and still do. We just always work at it. It is the 80/20 rule. 20% of what you do, accomplishes 80% of the results.

If you focus on that 20% you will get to where you want to go much faster than those who don't.

Stay focused, and make sure you are focused on the right things!

Hey Danny,

I have to kind of agree and disagree with your post here. While you offer great advice, it doesn't matter which side of the wholesaling spectrum you work, as long as you work it.

It's important to build a buyer's list.

It's important to find motivated sellers.

If you build a buyer's list, then you need to find what your buyers want...a great deal.

It sounds like the 1 out of 50 investors that call you back (I get similar results BTW. lol) are the go getters, while the rest of the 49 investors aren't working the business like they should be. They should be following up with you, they should hold themselves accountable. I touched on this the other day in a blog post I wrote for BP. http://www.biggerpockets.com/renewsblog/2010/02/20/being-committed-to-being-committed/

At any rate, if you don't work the business then you won't get results. It doesn't matter if you building a list or looking for motivated sellers. Personally I do both! It only makes sense...

Again, great advice Danny and something people should definitely consider. It just that eventually, both pieces of the puzzle will have to come into play.


- JL

ps. I hate when people write in all CAPS... :roll: