3 Challenges of Wholesaling Houses — And How to Beat Them


If you’re an up-and-coming real estate investor, you may be familiar with the concept of wholesaling real estate. Compared to other methods, wholesaling houses is considered one of the easiest ways to start investing. You won’t even need a large sum of money to put down on a property or a perfect credit score to get started.

Still, that doesn’t mean that wholesaling is without challenges. Wholesalers often struggle to navigate wholesaling’s competitive market while finding motivated sellers and managing profit efficiently.

Despite these challenges, wholesalers still have the opportunity to grow their business toward long-term success. As a wholesaler, accomplishing your goals requires careful strategy and a steady stream of qualified leads. If you’re up for the challenge, try implementing solutions to these common hurdles. That way, you can ensure that your real estate wholesaling business triumphs above the rest.

1. Market Competition

As wholesaling grows in popularity, competition is fierce. Of course, investors are drawn to wholesaling houses for the low barrier of entry, but few wholesalers will stand the test of time. Those that can withstand this competitive market understand how to enact a strategy that allows their business to flourish.

Implement the following tactics to stack the odds in your favor:

  • Monitor Supply and Demand Trends. Many wholesalers state that the market is saturated, but this abundance of competition can often be attributed to choosing the wrong area. In wholesaling, investors will find the most success in small and medium-sized cities rather than major metropolitan areas. After selecting the right location, analyze trends regarding the supply and demand using online resources like the Multiple Listing Service.
  • Finding Qualified Leads. Ultimately, wholesaling is a numbers game. In order to get the most lucrative deals, you’ll need to contact as many leads as possible. But you only have so many hours in a day and can’t always do it alone. On your wholesaling journey, form lead-generating partnerships with cold calling companies to find more qualified leads with minimal effort.
  • Market Your Company. Prospects will not do business with your company if they’re unaware that it exists. Marketing is a vital part of increasing brand awareness and revenue. To attract the right leads, use multiple marketing channels, including email, social media, and direct mail.

2. Finding Motivated Sellers

In wholesaling, a primary contributing factor to your success is your ability to find motivated sellers. Although it is uncommon for property owners to sell their homes for prices far below market value, there are homeowners in specific situations that increase their desire to sell as soon as possible.

However, unlike some other types of qualified leads, it’s rare that you will find motivated sellers using online tools. Motivated sellers are those that are ready to sell as quickly as possible, so their listings are unlikely to linger on digital listings. Instead, it’s better to find and contact these leads directly.

Typically, motivated sellers are people in the following situations:

  • Property owners with tenants who do not pay rent
  • Those experiencing a divorce or another significant lifestyle change
  • People who currently reside out-of-state
  • People who cannot afford their property taxes
  • Those with a property in significant despair

Finding motivated sellers is an arduous process, and if you’re searching for leads yourself, it will take up the vast majority of your time. One of the best ways to improve your efficiency and contact more qualified leads is by recruiting a team of professional cold callers.

Professional cold callers will work with you to devise a script that highlights the benefits of your wholesaling business and appeals to your ideal client — in this case, motivated sellers who are eager to make a deal. Your cold calling team will undertake the process of sifting through potential sellers and send qualified leads your way so that your sales team can close the deal.

3. Protecting Your Profit Margins 

It is common knowledge that a business not earning an adequate profit will not exist for very long. Wholesaling real estate has the potential to earn significant profits, but you’ll need to manage your revenue effectively for your business to flourish.

There are many different reasons that wholesalers fail to produce or maintain the profit necessary to sustain their business, but the most common causes of failure include the following:

  • Overspending. Many wholesalers begin their business with dreams of the astronomical profits that wholesaling offers. While this endeavor can be lucrative, wholesalers must manage their earnings wisely. This means keeping your team as small as possible while allocating your funds towards resources that will gradually expand your business.
  • Working with the wrong leads. In the beginning, it’s challenging to discern which leads are worth your time and which ones you should abandon. It is essential to learn how to filter through leads early on. Luckily, professional cold calling companies can handle this for you so that you can optimize your time.
  • Failing to invest in an attorney. Unfortunately, there is always a risk that lawsuits will occur. To reduce the chances of this happening, wholesalers must ensure that everything is documented and organized. While assistance from an attorney can be expensive, it is significantly cheaper than losing a lawsuit, so consider obtaining legal help when necessary.

Overcome Challenges with Call Motivated Sellers

Every business venture comes with challenges, so it is important that you are prepared to navigate each curveball with ease. The primary challenge that plagues wholesalers is their ability to find qualified buyers and sellers. If you’re struggling to find qualified leads for your wholesaling business, team up with experienced cold callers and watch the leads come pouring in.

To start building your network, acquiring properties for your portfolio, and turning a profit, enlist the assistance of Call Motivated Sellers. Our team of professional cold callers saves you time and effort by vetting leads for your team. Informing interested buyers and sellers about the benefits of your wholesaling services, we’ll use our expertise to warm up leads, find the best prospects, and set your sales team up for success. With cold callers on your side, you can leave the hard work of lead generation to us and focus on other aspects of your business.

Call Motivated Sellers is an American-based real estate cold calling service that can help raise your sales and provide hot leads year-round. We have years of experience cold calling in the real estate industry, along with access to the best information for buyers, sellers, and agents to help you close more deals.

If you’re ready to leverage the power of cold calling for wholesaling, Call Motivated Sellers is here to help. To learn more about the services we offer, just contact our team today!