Biggest Mistake Wholesalers Make
Q: Gerald, I’m a new real estate wholesaler and I’m having trouble closing my first deal. I’ve built my rehabber buyers list like you told me, but all the investors are passing on the deals I have under contract. What am I doing wrong? Craig, Rochester, MN
A: Craig, if rehabbers are passing on your wholesale deals, one of 2 things is happening: 1) either you’re pushing deals in areas or neighborhoods that your buyers aren’t interested in or 2) your wholesale price is too high. Part of your job as a wholesaler is to find properties in neighborhoods that your investor buyers want to buy in. One of the biggest mistakes wholesalers, especially new wholesalers make is not leaving enough $ on the table for their investor/buyer. Investors have to be able to earn a sufficient profit to buy into a rehab deal. My suggestion is that for every buyer you approach who passes on one of your wholesale deals, ask them why they passed–that’s the best way to find out the truth and then make the necessary adjustments for the next wholesale deal you present. Good luck.
Thanks for your question, Craig. For more real estate information and tips visit my blog at geraldlucas.com.