Wholesaling, Professionals, and Professional Wholesalers

[Adam K.]

Do you now hold the title of “Real Estate Wholesaler” with a website, google voice number, street signs on every intersection and mailing out 1000 cards a week? Do you have a wholesale deal you have been sitting on for more than 3 days and just can’t move it? If you've had it for 3 weeks then it probably isn't a deal at all or you’re not connecting with real buyers. Are you receiving marketing responses from sellers but can’t lock up the assignment? Your process is not necessarily wrong but your numbers might be. I received five emails today already from wholesalers trying to sell rehabs at market price with unrealistic ARVs, impossible rents, and ridiculous rehabs. It's not their fault; they are just missing accurate information.

When I see these emails with bad numbers that are not deals I first feel sorry for the seller who signed the contract, next the investor who buys it and then maybe the wholesaler. I say maybe because if the wholesaler can’t move the property because they want an outrageous assignment fee then they are being greedy and it’s their own fault. Besides the obvious of the wholesaler not making any money the motivated or distressed seller is having their time wasted. If it is a distressed homeowner then their problems, stress, and misery is only be dragged out while the wholesaler tries to figure it out. No fault for trying but the real goal is to solve the homeowner’s problem and that usually means it needed to be solved last week.

Have you found a motivated seller and not sure exactly how to proceed? Maybe the seller doesn't feel comfortable signing contracts to sell their house to someone that does not have a real estate license, who has no experience, read some internet forums for 2 years in their free time, stuck some signs on the side of the road, and talks about mysterious cash investors they know who can close tomorrow. It happens every day. There are plenty of success stories and I’m not saying wholesaling is bad or you shouldn’t try but just think how the whole story sounds to them.

Not all real estate agents make their living on commissions and the minimum brokers fee can be less than most people's bar tabs. In Texas the commission paid to a buyers agents is a "customary/recommendation" not a requirement. Those 2 numbers can equal $100 or $100,000 depending on the agents or agent you work with. Finding a creative investor who happens to hold a real estate license can be a very valuable asset. Just by having the licensee on your team you can put the seller at ease, get precise sales data reports, and leverage the MLS to populate hundreds of other sites nationwide. Blast emails, yellow cards, websites, business suits and LLC's can cost as a million dollars but they don't make you the wholesaler a Professional.

I am not a lawyer but I do know the legal costs attached to real estate can put you out of business before you even start if you don’t know what you’re doing. Or worse yet, cost somebody their home. Every state, county and city is different when it comes to real estate law so don’t bank on internet forums even if it was a lawyer that posted the information. Knowing the laws for your area is a requirement if you want to call yourself a Professional.

Professionalism is the way you conduct your business, not a license or certification ( and not all licensed real estate agents are Professionals).  Be a Professional wholesaler and put the seller’s interest first by fixing their problem the best way you can. Being a Professional is someone who uses accurate information, is realistic with expectations, and is honest about their experience and motivation. If a Professional is in over their head they inform the client, terminate the contract and direct the seller to someone who can get the deal done. If you do that for them then your reward will come. If you’re sitting on a wholesale deal that doesn't get any bites or you’re about to lock up your first assignment contract strive to be a Professional and don’t be afraid of the Professional real estate agent.