The Most Common Challenges With Wholesale Real Estate And How To Overcome Them


While wholesaling houses is a great investment for many people, it comes with its own set of challenges, like anything else. Wholesaling can be a great place to begin for many people because it requires very little money and has minimal risk.


That said, it’s not without its problems and in this blog we’re going to be talking about issues related to the sellers and specifically how they may feel about you turning a quick buck off their long-term investment. Here are our key tips and tricks:


What You Don’t Hear About Real Estate Wholesale

Everyone wants to talk about how great investing in real estate is (which is true,) but what they fail to mention is the challenge of dealing with the sellers.


The best way to understand this challenge is to put yourselves in the sellers’ shoes. In many cases, the seller is experiencing some sort of hurtle in their lives, which has led them to sell their property.


When a seller sees that you are about to make a pretty penny off of the property they once owned, they might get upset. Imagine if you owned a property for 15 years, put a ton of effort into the property and had no choice but to put the property up for sale. It would be frustrating to know you have invested time, money, and memories, to know that the new buyer will make thousands of dollars off some of the work they put into it.


Now, we are not saying that every seller gets upset, but in the worst-case scenario, a seller could find out how much money you plan to make off of the deal. At that point, some sellers might become so frustrated that they choose to cancel the deal.


Here are some steps you could take to avoid this scenario:


Build A Relationship

If you are familiar with the real estate industry, you may already know that real estate is all about relationships. The closing process could be tedious and take some time on both sides but it could go a lot smoother if there is a strong relationship between the seller and the buyer. So how do you build strong relationships?


It all starts from the beginning. From the very first conversation you should have developed a relationship based on strong communication. This is where many people make mistakes. They are focused on closing the deal and they forget all about discovering leads, the sales process, and relationship building.


At Call Motivated Sellers, we’re here to initiate that relationship with your seller. Once we have identified a qualified lead, we will pass their information onto you, so you can focus on what you do best: closing the deal. Learn more about our process here.


Planning the closings

Although you have built a great relationship with the seller, you still have to make it to the closing table. You may also know that people don’t always follow through with their verbal or written commitments, even though they have signed a contract. In some cases, you might have to do two closings (if the buyer is unhappy about the profit you will be making.) Or, sometimes, the buyer will understand, and the closing will be a walk in the park!


Managing two closings

If you did have to do two closings, the first would consist of you purchasing the property from the seller and the second closing would be where you sell the property to the new buyer. It is possible that both closings could be scheduled in the same day. Or you could have two closings, which means your closing costs would be doubled and transactional funding would be required. This could ultimately cut into your net profits.  Many people avoid two closings because it significantly reduces a wholesaler’s profits.


The Challenge of Finding Qualified Leads

Another challenge of the wholesale real estate industry is finding qualified leads. Very rarely do new leads just fall in your lap. Those who are successful with wholesale real estate go out there and find the leads themselves. Here are a few ways to find qualified leads:


Social Media. Social media is intended to stay connected with friends and family which is why it’s important to limit the amount of posts you share on social media. However, you can still create awareness and foster connections. In addition to your limited posts and shares, you can use social media as a tool to discover new leads.

Referrals. Referrals are a great way to get qualified leads. You won’t want to rely on referrals for sales, but it is an excellent addition to your sales strategy.

Cold calling. Cold calling has been an excellent sales method for years. Cold calling is so effective because it allows you to get in touch with new leads that you might not otherwise discover.


Call Motivated Sellers: Minimizing Challenges

As you can see, there are quite a few challenges that come with wholesale real estate. By being aware of the challenges and how to successfully overcome them, you can be successful with your investments.


At Call Motivated Sellers, we provide outsourced cold calling agents to help you leverage your time better so that you can focus on the bigger picture: negotiating with motivated sellers.  Our experienced agents will build strong relationships with potential clients, so that you face minimal obstacles during the process.


Want to learn more about our cold calling services? Contact our team today and check out our latest blog posts!