If you are being completely honest with yourself as a wholesaler in real estate, you know that there are some pretty shady things going on in the business. And the result of these acts by some in this niche has resulted in all of us having a rather unfortunate name and poor reputation. In fact, some consider wholesalers to be the bottom feeders of the real estate investment business. And while we all understand that a few bad apples can ruin our reputation as a whole, we all need to work to improve the overall impression of who we are and the service that we provide to our customers. So without sugar-coating it, here we go!
- Be original, don’t sell other people’s deals. This sounds easy, but you would be shocked to learn how many people are pushing other people’s deals and making them appear to be their own. And even worse, they are offering them at different prices. This practice happened when a friend reached out to ask about the latest deal I had sent over to him. He said that three other wholesalers had sent him the same deal but at different prices. This makes us all look bad, and more importantly, it is illegal. So don’t get tempted to flood your buyer’s inbox with deals that you don’t have an interest in just to look like you are super busy and connected.
- It is sad to need to say this but act and be professional. This covers everything from the antics above to getting your license and running a legit business. There are rules for buying and selling properties, and they are in place to protect everyone involved in the transaction. If you are going to be in the business, then do it as a licensed professional and work to keep all activity on the up and up.
- Putting down $0 earnest money is not professional. This also follows the theme of item number 2, but it also goes a bit further. In addition to being a professional, don’t try to take advantage of others by holding up a property for 30 days with no earnest money on the table and then walk away without losing a dime. Follow the standard rule of real estate and also be a decent human being. Put up the money that anyone else would as a show of honesty and good faith.
- Greed is never a good thing. And when wholesalers add massive fees on top of someone else’s deal, it makes everyone look dishonest. Your reputation and credibility are essential in the real estate business. But by offering someone else’s deal at an outrageous price, you are essentially throwing away for future respect and good name for a one-time cash payout. Your business will be more successful in the long run if you make an honest living and allow your buyers to do the same.
- Think of the entire industry, including your buyers. Again, all of these points are very similar but important to the industry and the overall reputation of wholesalers. If you become known for honest, upfront, and fair deals, your business is going to thrive. If your buyers know that you are marking properties up too much, then your business will suffer, and so will your reputation. Think long term for the good of the industry and your own good.
- Keeping your word should not even be on this list because it is such a business basic. But sadly, there are many who missed that part of business class or just don’t understand about karma and how this world works. Don’t bait and switch, create hidden or misleading fees, or back out on a deal. If you give your word, stand behind it.
The overall reputation of wholesalers is very negative. And even if you are not a part of the problem, you need to be part of the solution. Professionalism is vital in any business, and it appears to be seriously lacking in wholesaling. But by conducting business in a manner that you can be proud of, professionally, and in adherence to all of the rules governing real estate, you can set the example for others to follow as we clean up our business and our collective reputation.