Risk and Challenges

[Benny Sanquintin]

Greetings Everybody!

I have a couple of questions. I am new to the real estate scene so any information will be valuable in my books.

1) What are some challenges you faced at the start of your wholesaling career? How did you overcome it?

2) Is there any risk that come with wholesaling that people do not tell you?

[Cody Lee]

1) Trying to make numbers work when they don't. When you are starting out, it's challenging to accurately assess properties and rehab budgets. It's also very tempting to try to force margins when you've been grinding out 60 hour workweeks only to get told no over and over or have people wanting prices that don't make sense.

You can overcome this by really knowing your trade and improving your sales strategies. John Martinez with Midwest Revenue Group has some great free sales coaching resources. I highly recommend him. The other thing is to not want a deal so bad. If the numbers don't make sense, continue to follow up but don't just increase your offer to try to get them to sign. This is irresponsible and sets yourself up for failure.

2) Be prepared to not get income for a while when you start. Income will tend to ebb and flow until you get your processes really dialed in so always keep a safety net in case of bad months. Also, this is not an easy business at all. There are tons of wholesalers out there who do unethical practices or act incompetently (like offering way more than they should) and that can make your market more hostile towards wholesalers. "A few bad apples spoil the bunch" really applies here.

The best piece of advice I can give you is to always provide value. Don't contact people with the mindset of trying to get a deal. Contact people with mindset of trying to help them, even if they don't work with you. Always put ethics and honesty first. Never lie or coerce to get a deal. Lay out the facts, build rapport, look after the seller's best interest. You'll be surprised how often people will be able to read your heart and work with you simply because they trust you.