How to Become Your Wholesaler's First Call

[Jimmy O'Connor]

Let's face it, the wholesaling market is oversaturated. The low barrier of entry has allowed so many that are not professional, poor at acquisitions, and have a tough time managing sellers to enter the arena. In the Philly Market, you can throw a rock in Point Breeze or Brewerytown and hit a couple dozen. However, a good investor knows when he/she has found a quality wholesaler, they better lock on. When you find one that does the grind, gets insane deals without taking absurd/greedy fees, and only brings you to properties that are actually worth carving time out for. These are the people who do not rely on email lists that spam your inbox but instead on a handful of their investors whose criteria they know intimately where one phone call can equal one sale. The question is- how do you get yourself into this handful? 

Here is the perspective from a wholesaler that takes pride in his work. I do not claim to be the best, but I can safely say I work with integrity and it shows. This is not the "End All- Be All" handbook but a sincere opinion of what goes through my head when I am picking up my phone to dial. These are the things that I look for in an investor for me to expose them to deals days before I consider putting them on an email list.

These points are under the assumption that the wholesaler has already demonstrated they acquire quality deals- not for when you are just forming your relationship. Read the follow with this context in mind.

1) Value their time. They are humans just like you.

Being an "investor" does not make you above a wholesaler, regardless of how many zero's are in your bank account. Reality check: Like wholesalers, investors are a dime a dozen nowadays. Good HONEST wholesalers (yes they do exist) that find quality deals are rare.  A wholesaler's time is their money. Every minute that is spent doing something that does not result in progress is money lost. When a wholesaler calls you on a deal, make time within the hour to analyze the deal and figure out if the numbers make sense on paper. If they want to give you first dibs on a property, the longer you take is time away from selling it to someone who will act quicker.

2) Pick up your phone. You're not too busy for a 2 minute convo for a good deal. If you are, you're in the wrong business.

More often than not, a wholesaler is not calling you to talk to you about how crazy the weather has been. They are calling you with a deal. If you are the kind of investor that goes right to voicemail and always auto replies "Sorry, can't talk right not I'm in a meeting. Just text me," or "I will call you back" and never do, you will condition them to not want to call you, or sometimes even cut you from the list entirely.

3) If they are not a run of the mill wholesaler, do not treat them like a run of the mill wholesaler.

When it comes down to it, Real Estate is, and always will be a relationship business. People want to do business with those who value their efforts and reward them accordingly. 

The following phrase is a quick way to get taken off the speed dial for good deals:

"Just put me on your list I'll call you when I am interested"

What this translates to:

"The quality of your product is the same as everyone else." 

Level with me- Who is going to be my first call? A person who picks up my call within the first couple of rings? Or an investor whose voice I've heard once or twice that is "too busy." Say what you will about wholesalers, one thing is true- to be successful you have to be a hustler. As "too busy" as a investor claims to be, I ensure you that the wholesaler with the quality deals can match their schedule. On top of that, good wholesalers spend a lot of time on the street- they have insight that can not be matched 

4) Communicate why you like/dislike a property. 

Whether it is because of the spread, the location, your capacity, the rehab, etc- LET THE WHOLESALER KNOW. In order for each phone call to be more efficient, you must be open to showing them how you evaluate. NO TWO INVESTORS ARE THE SAME- and not one wholesaler is a mind reader! Why waste both your time and the wholesaler's time going out to see properties when he/she could filter out deals? If you have a spreadsheet, send it! If you have a performa, shoot it over! Who knows- maybe they have a sub that can do a better job at a better price that can help you from bleeding profits on your rehab. 

5) Have your finances set up before hand

The worst is when a deal falls through because of a HM or Private lender. The buyer loses their deposit and everyone walks away upset. Make sure your lender is quality, has a track record of performing within the contracted timeframe.

6) Have all decision makers on board before you go see the property

Whether it is a partner, lender, contractor, husband, wife, grandma, three times removed second cousin, OR WHOEVER needs to be a part of the decision making process, have them on board and in clear communication. You are only wasting time going to see properties if one of the major parties was not on board from the get go. The more properties you see without purchasing, the less and less the wholesaler will think you are a real buyer, regardless of your POF. A buyer that can only buy a handful a year but can make a decision quickly and confidently is more valuable than a real estate mogul that takes 4 days to even look at the comps.

I hope this helps share the perspective of wholesalers. More often than not they get ragged on (often times for good reasons, trust me I know the industry) but if you are looking to scale your business and not spend you manpower on marketing and managing sellers, a quality wholesaler can be vital to your success.