Metairie, LA · Member since 2008 · 165 posts · 1 vote
Negotiating...I believe if more wholesaling "gurus" emphasized this tactic, there'd be less stress and heartache for wholesalers..Let's face it, some people who get into real estate via whatever strategy aren't great negotiators..they really have to work to learn it.. I only bring this up b/c a wholesaler acquaintance of mine wondered why he couldn't get the "motivated sellers" to part w/ their property for his asking price, no matter how much he bargained w/ them ...I'm interested in getting feedback from others on this..Aren't you guys tired of the dumbed down approach to wholeslaing taken by gurus? Wholesaling is an art in and of itself and is no less demanding than other strategies..Your thoughts please, gentlemen.....
Metairie, LA · Member since 2008 · 165 posts · 1 vote
17y
Nick, good point..however it's the negotiaition that decides whether the property is contracted or not...for simplicity's sake i'm using wholesaling as both an entry and exit strategy..should've mentioned that in the beginning i guess..lol..sorry
Real Estate Investor · St. Petersburg, FL · Member since 2008 · 190 posts · 91 votes
17y
Not a gentleman, but..
I think that knowing your market like the back of your hand is the key to becoming a successful wholesaler.
You can learn all about contracts, and negotiating, and acquisition strategies, but if you don't know what a deal looks like in your market, you aren't going to get very far.
Real Estate Investor · ten mile, TN · Member since 2009 · 1k+ posts · 374 votes
17y
Actually, Stephani, it is the negotiating that makes the deal.
If you are interested in a property then you should use the worries put out there in the media (about the economy) to get the property at a price that will support a deal in your neighborhood.
Then be able to negotiate with the buyer showing him/her why the economy is about to improve and now is the best time to move on this deal.
Of course, the economy is just one of the negotiating tools to be used and I mention it only because it is what is in the forefront of the media these days.
Real Estate Investor · St. Petersburg, FL · Member since 2008 · 190 posts · 91 votes
17y
I see what you are saying, but before you can start negotiating, you need to know what price you have to come in at. You can be the best negotiator in the world, but if you don't know your market values, then it's all for not.
Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
17y
I would agree with Stephani on the fact of knowing your market is a foundational part of being a successful wholesaler or really a successful investor. If you do an awesome job negotiating the seller down to $50,000 but you don't know that you can only sell the house for $40,000, you're in trouble.
Now I have to say that negotiating is a HUGE factor in making more money on any deal. Knowing how to get deals for less and sell them for more will put more money in your pocket, but I would not say it is a "foundational" principle in wholesaling.
Inspector · Alsip, IL · Member since 2008 · 361 posts · 75 votes
17y
Good advice Steph and Ryan. I know this is an old thread, but as far as negotiating goes, Vena Jones-Cox's wholesaling course has about 50 solid pages devoted to it, and has a whole seperate course for it as well. It'll cost a little money, but it would be well spent imo.
Rental Property Investor · Baltimore, MD · Member since 2009 · 624 posts · 559 votes
17y
Great topic.
In my experience I have seen some very inexperienced investors stumble through a deal (to their credit) in spite of their negotiating skills.
Their biggest weapon was coming at the discussions from the place of how they could solve the sellers problem(s).
Of course... those that developed more advanced negotiating skills not only increase their profits, they also got more deals to the closing table.
One of my all time favorite negotiating books, one that I require all of my clients to read, is The Secrets of Power Negotiating by Roger Dawson. I highly recommend it.