Being new to the real estate wholesaling business, you are likely wearing a lot of different hats to get your business off the ground. And that endless process of generating leads, meeting sellers, and marketing properties will wear you down very quickly. So you need to have a plan or roadmap to get you from a one-man-band to a well-organized team that functions flawlessly to grow your business.
In every wholesaling business, there are three essential components:
These are the three parts of every real estate wholesaling business. And each one needs to be successful for your company to grow, prosper, and provide you with the financial security that you want from your career.
Acquisitions are merely how you are getting the properties. You do this by generating new leads, acquiring new properties, following up on your offers, communicating with motivated sellers, motivating non-motivated sellers, and converting your leads into reliable deals. And to make this happen, there are four skills that you will need to perfect.
- Analyzing Deals- you need to run the comps and know what the property is worth and the potential that it holds in the future
- Building Rapport-in most cases, sellers are in distress, and you need to cultivate trust and a stable relationship to determine what the seller wants or needs and convey that you can meet those needs
- Sensing Motivation: The more leads you have, the better you will become at determining who is really motivated so that you can focus on viable deals
- Understanding Purchase Agreements- purchase agreements can be a short and simple as a single page doc, but they need to be completed with the help of a lawyer to be sure that they are binding in your state
This is how you move, sell, unload, or use whatever term you use to eliminate your inventory. And it covers everything from the actual sale to forging long-term relationships with buyers. Here are the three skills you will need to complete this aspect of wholesaling.
- Building Rapport- Real Estate wholesaling business is all about people, relationships, and trust. You need to be able to read your buyers and know what it will take to make a sale. And you need to be able to differentiate between the one time buyer and the person that will be a long-term buyer. The long-term buyer should get the bulk for your time in early transactions to forge a strong foundation for years of future deals.
- Marketing- You need to know where to market properties to reach the best buyers. This process can be a group of resources like direct mail, email, Craigslist, and more. The more research you complete early in your career, the more potential you have for success as your business grows, and you fine-tune your marketing skills.
- Understanding Closing Procedures- You need to understand all aspects of the closing to clearly communicate them in your purchase agreement.
This is the best part because this is when you get paid! Here are the three skills that will wrap up the entire process and get you your money.
- Understanding The Closing Procedures- You need to be familiar with the relationship between the title company and the purchase agreement. In addition, you will need to coordinate schedules for the process and complete then closing documents.
- Strong Organizational Skills- This is essential when you have multiple deals in different phases. You need to get the documents completed correctly and quickly to accommodate everyone’s schedule.
- Landlording- If you are selling a property with current tenants, you will need to act as the interim landlord by collecting rent, processing evictions, and handling tenant-related issues and maintenance requests.
While this list might look overwhelming, it is a complete list of the tasks you are juggling yourself. But it is also a comprehensive outline that will help you select team members who can focus on one of the primary components to allow you to focus on your strong suit. In the beginning, you need to focus on creating processes and procedures that will help in training other team members and defining roles and responsibilities to ensure your future success as a real estate wholesaling firm. As hectic as it might feel now, it is essential to build a solid foundation that will continue to support your business as it grows.