In 2008 I attended a 2 day real estate investing workshop. I know many of you are thinking, oh a seminar with the goal being that the participants, such as myself, purchase training materials and join an “elite investment club”. Yes, that’s correct! I knew going into the workshop that there would be a sales pitch but I also knew that it would be an opportunity for networking and for collecting morsels of really great information in between sales oriented information. In the 2 day training I learned enough, from the speakers, as well as my peers that I felt like I was ready to formulate a plan and move forward. I didn’t feel compelled to purchase the materials or join the club, for the low price of $15,000, but I did get some valuable information and the motivation to get moving on my plan to build wealth through real estate investing.
With my new found information I decided to give wholesaling a try. I spent months doing market research, networking, and putting my plan to paper. The opportunity presented itself and even though I was worried that things would fall apart I took the leap of faith and purchased my first home to wholesale. There are a lot of things that go in to successful real estate deals and I’ll go over a few here.
1. Have Will Power
You have to want to be in the wholesaling business. There is definitely an initial investment of time and capital building that is required. The art of wholesaling is getting a great deal on real estate. In the effort to find these great deals you will inevitably make some people upset. Don’t take it personal if someone gets a little agitated with an offer that they feel is unfair. If someone gets so angry that they are threatening you or calling you names then this someone you clearly wouldn’t want to do business with anyways. Politely excuse yourself from the conversation and keep on looking. In addition, don’t fall for guilt trips. You did your research and you know the price you are willing to pay for a certain property don’t ever let someone guilt you in to paying more than you would have initially thought was fair and reasonable. This is not to say that you can’t be negotiable I’m just saying don’t go below your bottom line.
3. Be Patient
In real estate investing you sometimes have to be patient to find that great deal. At some times there can be a handful of opportunities and you get your pic and other times you may have to keep looking for months before you find a suitable deal that meets your business plan. It takes a while to build the business, there is not get rich quick scheme in wholesaling. Take your time and do it right and the rewards will follow.
4. Have Integrity
In wholesaling it’s important to keep to your morals and not get greedy. You can go after your dream of being a successful real estate investor without sacrificing your integrity. Always follow through with what you say your going to do. Don’t try to pull one over on a desperate seller be fair, transparent, and honest. Approach wholesaling from a win-win situation, you are helping someone get out of a house they can no longer afford or no longer want to be in and you should have benefit from that but it should not be mutually exclusive to the other party.
5. Have Conviction
When you tell people; friends, family, co-workers, and strangers what you do for a living the immediate reaction is that you are ripping people off. It never feels good to be accused of doing something wrong when in fact you are keeping with integrity as discussed above. Don’t let the naysayers get you down and tell them with conviction why what you are doing is really quite the opposite of taking advantage of people.
Wholesaling is a great way to invest in property and with the right business plan and the items mentioned above it can be a rewarding and profitable career. What else should I add to the list?