The 9 Departments of Successful Wholesaling Companies

[Cornelius Garland]

With all the talk about AI and new advancements being made in real estate, I think now is a good time to talk about the fundamentals of running a real estate wholesaling business.

We are truly living in the time of "Shiny Object Syndrome". I don't buy into the hype. I haven't been doing this for too long, but I have seen fads and trends come and go during my 8 years of investing.

Trends and fads can get you a quick deal but there is no substitute for consistency through time-tested processes and systems. I have attached my Wholesaling Timeline. These are the 9 components that each wholesaling company needs to churn out deals on a monthly basis. I will go over each one briefly.

If you file your LLC today the very next step you want to take is researching your market. What zip codes comprise your MSA? What zip codes are war zones? What zip codes are too affluent to target? If you don't do this, you're setting up yourself for burnout. You could be dialing sellers in golf courses or neighborhoods where a deal will only net a $3,000 assignment fee.

After you do your market research, you want to pull your list by using criteria to get the best homeowners. Yes, your list-pulling tool matters. Then you want to skip trace these sellers with a quality skip tracing tool. Yes, the skip tracing tool you use matters as well. Low-quality data means you will be dialing "wrong number-after-wrong number". This can lead to burnout and dampen your spirits. I've seen many wholesalers quit because of this.

Message delivery - Are you cold calling, voice broadcasting, or doing direct mail? Whichever one you choose, just pick one or two and stick with it for 30 days. I've seen so many investors jump from marketing channel to marketing channel without giving it at least 30 days to see what works. We have to FOCUS here, guys.

Lead vetting - each lead that comes through is not worthy of your time. Some are follow-up leads - meaning you will give them a quick call today to establish communication, but will anticipate calling them back next month. Spending an hour underwriting a cold lead is downright foolish and a waste of time. Know which leads are hot and cold. This saves you time.

Lead follow-up - If you do this properly, 100 leads can yield one deal through follow-up monthly. This is very important throughout our slow months of the year, such as November and December. These new sellers you contact won't want to sell during these months, but the leads that you have been following up with over the months will be more inclined to sell with you.

Now, I'm not even going to cover acquisitions, dispositions, and transaction coordination because it seems like you all know this. These are not the only steps needed to run a successful wholesaling company. These steps are important but the wholesaling space really focuses on this heavily. I felt it was important to mention these other steps that are not as well-known.

-C.C.

[Don Konipol]

Quote from @Cornelius Garland:

With all the talk about AI and new advancements being made in real estate, I think now is a good time to talk about the fundamentals of running a real estate wholesaling business.

We are truly living in the time of "Shiny Object Syndrome". I don't buy into the hype. I haven't been doing this for too long, but I have seen fads and trends come and go during my 8 years of investing.

Trends and fads can get you a quick deal but there is no substitute for consistency through time-tested processes and systems. I have attached my Wholesaling Timeline. These are the 9 components that each wholesaling company needs to churn out deals on a monthly basis. I will go over each one briefly.

If you file your LLC today the very next step you want to take is researching your market. What zip codes comprise your MSA? What zip codes are war zones? What zip codes are too affluent to target? If you don't do this, you're setting up yourself for burnout. You could be dialing sellers in golf courses or neighborhoods where a deal will only net a $3,000 assignment fee.

After you do your market research, you want to pull your list by using criteria to get the best homeowners. Yes, your list-pulling tool matters. Then you want to skip trace these sellers with a quality skip tracing tool. Yes, the skip tracing tool you use matters as well. Low-quality data means you will be dialing "wrong number-after-wrong number". This can lead to burnout and dampen your spirits. I've seen many wholesalers quit because of this.

Message delivery - Are you cold calling, voice broadcasting, or doing direct mail? Whichever one you choose, just pick one or two and stick with it for 30 days. I've seen so many investors jump from marketing channel to marketing channel without giving it at least 30 days to see what works. We have to FOCUS here, guys.

Lead vetting - each lead that comes through is not worthy of your time. Some are follow-up leads - meaning you will give them a quick call today to establish communication, but will anticipate calling them back next month. Spending an hour underwriting a cold lead is downright foolish and a waste of time. Know which leads are hot and cold. This saves you time.

Lead follow-up - If you do this properly, 100 leads can yield one deal through follow-up monthly. This is very important throughout our slow months of the year, such as November and December. These new sellers you contact won't want to sell during these months, but the leads that you have been following up with over the months will be more inclined to sell with you.

Now, I'm not even going to cover acquisitions, dispositions, and transaction coordination because it seems like you all know this. These are not the only steps needed to run a successful wholesaling company. These steps are important but the wholesaling space really focuses on this heavily. I felt it was important to mention these other steps that are not as well-known.

-C.C.

I’m sure this is the “abridged” version, but an excellent summary of the business.  Major take away for people considering wholesaling is that, as @Cornelius Garland explains, wholesaling is a BUSINESS . Mr Garland, through his 8 years of experience, presents a VERY convincing case that there are many (9) different functions that must be successfully negotiated to run a profitable wholesaling operation.  This means LOTS of education, experience and time is required. 

@Cornelius Garland I ask that you post more often; you are providing some insightful and needed information.