Working in the wholesale real estate industry can be professionally and financially rewarding. You can automate the process, but that does not mean it is robotic. Individuals looking for and negotiating wholesale deals can approach the matter through a five-step process.
- Study
Take time to study wholesaling and how you can utilize all of the tools available to you, such as driving for dollars. Driving for dollars is a method of dispatching a skilled team in various neighborhoods. There are systems available, such as DealMachine, that allow the crew to cover vast areas in a short amount of time. The mapping feature keeps them from overlapping each other’s work.
Tracking fair market value and real estate trends will also help you negotiate a reasonable price. There are public portals, government websites, and paid prescriptions that you can harvest valuable data from. The more knowledge you have about pricing, repairs, and general finances, the more confidence you will have in the field.
- Communication
Working with sellers and buyers in wholesale transactions requires a lot of communication. Some of that will be verbal, and sometimes it will be in the written form. To be effective at wholesaling, you should practice your introduction and presentation.
If you work in an office, see if you can get another agent to critique you. Family members and friends are also an alternative audience. If you have difficulty talking to strangers, consider investing in public speaking classes, or attend a local Toastmasters event.
You will probably have to send many emails and documents before and during the transaction. There are free online grammar and punctuation checkers that can quickly scan your work and highlight errors.
- Negotiations
In this line of work, you will often need to negotiate, and sometimes that requires you to be assertive. A common mistake beginners make is they believe the owner will perceive their assertion as aggression. Just remember that you are helping this person out of a difficult situation, and they are looking for guidance, which you can give.
The art of locating the seller and working out the internal details can be a win for all, including the driving for dollars team. There may be events that do not come to fruition, but even those are not a waste of time. Those situations are valuable experiences that you can draw from as you progress from deal to deal.
- Rapport
When dealing with people and some of their most valuable possessions, it is more comfortable for everyone if you take the time to build rapport with them. Do not take this action lightly because it can create the foundation for the rest of the transaction.
Some simple ways to connect with anybody are to find out if you have common interests or share similar backgrounds. Ask the potential seller about their situation, family, or hobbies. There is a good chance the two of you have something in common.
- Educate
After you learn about the person’s situation, you can then explain what wholesale is. During this process, do not come off as a salesperson. Take the time to educate the potential seller about the process. The easiest way is to break down the procedures and demystify the closing.
This specialty service is a method that can relieve struggling owners straddled with debt or with a property they do not want. Wholesalers create bridges that connect all parties.