For aspiring real estate investors, wholesaling is the ideal way to enter the industry and kick off a prosperous career. People are attracted to wholesaling properties due to low entry barriers and minimal startup costs. However, an easy entry doesn’t mean that your wholesaling business will succeed without effort.
Wholesaling real estate offers unique opportunities for new and experienced investors, but there are certain steps that you must take to ensure that your business outperforms the competition. As a real estate wholesaler, you will be required to speak with motivated sellers who may be emotional or in precarious situations. These sellers are searching for a solution to their issues, and it’s your job to show how you can help remedy their situation.
To do this effectively, take your time to build a solid foundation for your wholesaling business by performing in-depth research, creating a cohesive marketing plan, and forming solid relationships within your industry. As you’re getting started, consider implementing the tactics below to increase your chances of success and close more wholesaling deals.
1. Target a Specific Market
One of the most important decisions you will make when wholesaling real estate is defining which buyers and sellers you will focus on targeting. Begin this process by researching prospective properties in your area to understand who is selling and what type of buyers might be interested.
In order to be successful in the real estate wholesaling business, you must find properties that are undervalued in your market. The only way to determine whether or not a property is undervalued is by researching the cost of other homes in your target area.
Finally, marketing is a vital component of your success in the wholesaling business. Once you have chosen a lucrative area and demographic, it’s time to enact a cohesive marketing strategy so that buyers and sellers know about your services. Consider hiring a team of cold callers and enacting an online advertising campaign to spread the word about your real estate wholesaling business.
2. Focus on Communication and Professional Networking
Regardless of your role in the real estate industry, your ability to communicate correlates directly with your success. Wholesalers speak with a wide variety of people, and every client that you contact has different needs and wants. While some clients may prefer to communicate through phone calls, others may prefer emails. A successful wholesaler has mastered the art of effectively meeting client needs and expressing this in the manner they prefer.
In addition to cultivating strong working relationships with clients, those in the real estate wholesaling industry will also need to form connections with others in the industry. As your wholesaling business grows, you will find it beneficial to network with others in the industry, including general contractors, real estate agents, and people who reside in the area that you’re targeting. These relationships will support your brand’s image while also enabling you to reach a larger number of buyers and sellers through word-of-mouth marketing alone.
3. Form a Genuine Connection with Sellers
When you’re in the business of purchasing wholesale properties, you must understand that many of the sellers you approach are in less-than-ideal situations. Remember, it is unlikely that the average seller would get rid of their home for prices below the market value. “Motivated sellers” are those that need to sell their homes as soon as possible, and their desire to sell is often due to the following situations:
- They are in between jobs, experiencing a divorce, or going through another drastic lifestyle change.
- They own properties with tenants that don’t pay rent.
- They are trying to sell a property that is in extremely poor condition.
- They cannot afford their property taxes.
When sellers are in situations of this nature, you must approach them delicately. Attempting to hard-sell to motivated sellers could easily scare them away. Take the time to empathize with their unique situation, and understand their needs. Ease each prospect into the sale. Once motivated sellers realize that your services benefit them, they will likely take your offer.
4. Build a Solid Repertoire of Referrals
In the real estate industry, you will need to acquire as many leads as possible to ensure your business remains profitable. Each lead you contact places you one step closer to converting them into lucrative deals. While lead-generating partnerships and marketing play a critical role in the number of leads you can accrue, it is also essential to optimize the leads you currently have.
Building a repertoire of referral sources and contacts takes time, but it is necessary to sustain your business. Within every transaction comes the opportunity to solidify your company’s image, and you are judged on how you handle every conversation throughout the entire wholesaling process. In addition to communicating with tact and decorum, consider offering sellers an incentive for referring others to your business. Referrals are much more likely to close a deal than other leads simply because they learned of your services through someone who already had a good experience with your company.
Find Sellers and Buyers with Call Motivated Sellers
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!