Treat Wholesaling Like You're Starting a Pizzeria

Introduction

Wholesaling Single-Family Residential Real Estate is a small business, whether you think so or not. 

Like all small businesses, there are going to be ups and downs, but the key to success is in what you can take away from each event. When you think you should stiffen your neck and barrel through in the course you've taken, you may get that flash of doubt that will lead to a flurry of fear-based possibilities that come with failure. (This is the part where I'm going to ask you to buy my book.) 

My revelation came when I stopped treating Real Estate like "The Deal", and started treating it like I was running a small pizzeria on main street, across from another small pizzeria, next to Domino's, right around the corner from Pizza Hut.

Think: "If I had to run a pizzeria, that absolutely had to succeed, what would I do." If you make a list, you'll find that you should've asked what you wouldn't do. 

And when it comes to setbacks: The most successful people in this industry are the ones who see through the deceptions that are wrapped in the losses: "This time it didn't work, so this whole thing doesn't work". This doesn't mean that you don't reflect on what may have just happened, but that you take the right message from the event. "This time it didn't work, It could be the plan, execution, approach, sample size, etc. I need to look at this more closely." 

The rules that I've setup that have lead to success won't be found in most Guru investing books, CCIM, guides, seminars, or Wharton School Textbooks. Let me know if you're breaking any of these in your investing career. 

RULE #1 - WORK LIKE A MAD MAN

The first rule is the most basic, and the most essential to every business. WORK!!!

I want you to record yourself saying one thing "Work.", Then get the free program called Audacity. Drag the recording onto the track and edit the length (should be 1 second with a second in between tracks). Copy the audio (CTRL+C), press the right arrow to move to the end of the sound and paste it (CTRL+V). Do that again and again until it fills 20 minutes of time. Export the track to your desktop and you can upload it to an iPod or Cell. 

You now have a recording of yourself repeating the word "work" 1,800 times. When you wake up, or just need a boost, listen to it. This is motivation that really, really, REALLY sticks. All the RE Education you get will say that this can be done without leaving your home working, 4 hours a week. . . That's called a lie. You should be working 9-16 hours on your small business a day, and that's exactly what it is. Your business doesn't care about your other obligations, It demands the work. 

The good news is that the harder and longer you work, the more results you see.

RULE #2 - YOUR NOT AN INVESTOR

If I showed up at your doorstep and introduced myself as the king of southern Prussia what would you think?

The very best response you would get from me is a hearty laugh and a thank you for livening up your day.

Point Blank - You are not an investor. Technically, no one is. Banks borrow from the Federal Reserve and re-lend. Investors borrow from other investors and banks to invest. Only an idiot uses there own cash to invest - The cash that's used is simply borrowed money that's available faster than credit. But when you're talking to a Middle-America Seller "We buy Houses with Cash" = "I'm going to bring a big bag of hundreds from my grandpa's private vault . . . He won't miss it." If you don't show up in a Lamborghini, in their mind, you're busted.

So what does work:

DON'T SAY: "Im an investor buying property in this area." 

DO SAY: "I represent a group of investors who are buying property in this area."

Easy fix.

Remember that "Those who can't do, teach." Should be applied to every guru you come across. They wouldn't be giving you information on how to become a stronger competitor, unless they weren't competing in your industry. Take what they say with a grain of sand. Nothing will kill a deal faster than not meeting the sellers expectations of who you presented yourself as. 

P.S. - A motivated seller doesn't care where the money comes from, as long as they can trust you to deliver. 

RULE #3 - GO GUERRILLA 

I define going guerrilla as a whatever it takes mentality. This includes studying as long as it takes, working as hard as it takes, meeting whoever it takes. Practice, Practice, Practice

Everyone who's anyone in single-family investing has heard of bandit signs. That's a problem. That's an easy way for competitors to track you, Law enforcement to fine you, and businesses to avoid you. 

Don't misunderstand me: Bandit Signs Do Work!!

But the competition knows it too. So it now boils down to (1) Who can buy the most?, and (2) Who has the best relationship with the city?

Entrepreneurs have to be smarter, faster, and willing to do what the competition is unwilling to do. 

The trouble is that most people are trying to compete with other people who use bandit signs and go watch the game. After you place the signs, Canvas a neighborhood for leads. You have to get your hands dirty if you want to be an entrepreneur

Go door to door, use drop cards, use door hangers, etc. There are about 100 guerrilla marketing techniques that will connect with the buyer that you're looking for. If you need more guidance, consult rule # 1

RULE #4 - IT'S A PRODUCT BUSINESS, NOT A PEOPLE BUSINESS

The only thing that matters in this business (and life) is how much you produce.

This one's not easy for most people to accept.The people who fail (translates to Gives Up) are the ones who think that people will still take your phone calls if you stop solving their problems. Andrew Carnegie knew it, John Rockefeller knew it, Bill Gates knows it. 

PRODUCE and use the profits to expand production. Very Easy.

The nature of being an entrepreneur is to solve a problem with ACCEPTABLE solutions. The more you solve, the more you make. 

DON'T: make the mistake of thinking you need someone to sell yourself to a buyer before you get the deal. (That's like asking if anyone in the desert would want the water your selling) There will always be some investor who wants a good deal. 

DO: FIND A GOOD DEAL!!! - Focus all your efforts on getting the product. Your results will make you invaluable to your buyers who will line up to be on your buyers list.

RULE #5 - AVOID THE DOG !@#$

This one's a little crass, but hey . . . they're my rules. 

Dog "poop" is anything that will distract you from your industry, mission, or balance sheet. 90% of dog poop is something that you can't foresee or control: Negative influences, Theft, Employee-Mindsets, etc. These things come hurling at you like a brick everyday. Your job is to avoid wasting too much time and energy on them, and focus on the tasks that will make you give you enough resources to setup permanent solutions for these issues. 

Most people do the exact opposite. They try to be accepted by the dog poop because they think they'll get use to the smell over time. Just avoid it and put your nose to the grindstone.

Well there's the first 5. I hope you've gotten something out of this.

Thanks 

Sean