Why 80% of wholesalers fail & How to join the "20%"!

I may get flamed for this... But wholesaling IS NOT Real Estate investing. Wholesaling IS marketing and sales. What you're actually doing when wholesaling is packaging and selling inventory. It honestly really is very similar to being a used car dealer. Your goal is to buy at a discount, potentially lightly recondition, and sell at a profit. 

Daily on BP there are posts from folks who paid $1.25 a letter and sent some mail out. They've got calls coming in and aren't sure what to do. I'm all for taking action, learning as you go, and getting my hands dirty. At the end of the day though you need to set yourself up for success. 

So why do they fail? They're not thoroughly trained in sales and marketing practices. 

You have to have a deep understanding of what your target market is looking for, how they think, and what their concerns are. 

Do you understand how to handle objections? Build rapport? Actually ask for the sale? Can you phrase your questions in a way where you control the answer? How are your negotiation skills? Can you build value? Are you making a friend? Are you creative? Can you solve problems? 

Let me walk you through two presentations I've seen done. 

The Pen:

Imagine for a second that I'm in a room full of 200 people. I hold up a pen and exclaim that I'll sell it right now for $5,000. Who wants to buy it? No hands go up. There is some snickering and chuckles. Who would pay 5k for a pen? Now what if I told you that the pen in my hand was filled with 100k in diamonds. Who wants it now? Did he properly build value the first time around? 

The Chair:

When I was 17 I was in a sales training meeting. The presenter was discussing how with creativity you can literally sell anything. He pulls out the chair that was pushed into the desk in front of him. He asks for a "closer" to sell it to him. A guy in the back jumps up and walks up.He started showing features on the chair as he figured them out. How it could lower in height. Which is perfect for someone with bad knees. The lumbar support was adjustable for folks with back issues. The chair had a weight capacity of over 350lbs. The arm rests could be raised or lowered depending on the build/size of the individual. It could recline or be locked upright. All the sudden I no longer saw just a black chair but an object that solved multiple problems! He goes on to inform the presenter that this chair would be perfect for his entire staff. No need for people to fight over good chairs, no need to have different styles, and this chair would work for anyone. He could process their order on the spot and would take a Visa, MC, Amex, or Discover. Which worked the best? I think all of us in that room were reaching for our wallets. 

So what I'm recommending isn't what you're going to hear at 3 day seminars. It's not popular and it requires work. You need to build your sales skills. You need to learn some basic psychology, you need to study old school closing techniques, and you need to learn the terminology your clientele speaks.  

Taking action is great! If you can't close a door though you're just wasting your time. The folks I see succeed in wholesaling aren't Real Estate gurus. They're closers. So become a Glenn Gary Glenn Ross salesman. Understand the aspects of a sale, how to capture hot buttons, and you'll go far. 

Don't put the cart before the horse. Learn the basics and become a rock star. Build your skill set before your buyer's list. Drop some money on training books before you drop mail. 

The difference between dreams and reality is preparation. 

Always be closing!