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Hey Moguls, Sean Terry here…
You’ve gotta crawl before you walk. And sometimes you need to take a step backwards to move forward. Make sense?
Stay with me... It will.
I recently received a question from a wholesaler wondering how to market a wholesale property without a cash buyer’s list.
To answer this question accurately, there’s another question that precedes this question. And that question is…
“How can you position yourself as a wholesaler, with the seller, so that you can avoid disputes and awkward, back-pedaling moments down the road?
Position Yourself for Maximum Success
In this lesson, we’re going to talk about positioning yourself – first – before you start marketing your property. Why? Because getting bit in the butt is never fun, especially if the person sinking their teeth in is your wrathful seller.
Ouch.
Your main goal when positioning yourself with your seller is to maximize your success and lessen the risk of pissing off your seller. Period.
If you position yourself and your plan of attack correctly and fully disclose the same, chances are you’ve covered your butt.
When I sit down with a seller, I’m straight up. I shoot from the hip.
Profit Out of Property
If you’ve listed your property on Craigslist as well, be prepared to get that inevitable heated call from a confused, angry seller. When that call comes – and it will – kindly but firmly remind your seller that you disclosed up front your intention to put the property out there to better define its market.
And keep shooting from the hip...
You stated your intentions upfront to make a profit – profit out of property. So stand your ground, respectfully. Make it clear that you’re an investor. That means you’re open to the possibilities for the property. Maybe you’ll rent it, maybe you’ll flip it.
Like Bobby said, that’s your prerogative. Not the seller’s.
As a wholesaler, your intent is to sell the property quickly, right? But what if one of your buyers offer to front the money for fixes while you donate the property for your basis then split the profits 50/50 down the road? Hello.
Look, I’ve done it! Trust me, it happens.
Bottom line is you wholesale to make a profit, so make that clear to your seller up front. Remind your seller that you agreed upon a price, and what you decide to do with the property on the other side is irrelevant as long as he or she collects the money you both agreed to in the contract.
Don’t lose sight of why your service is beneficial to your seller! The advantage my sellers have of working with me (and same goes for you) is that I provide definitive prices and closing dates. With Realtors, my sellers would receive nothing less than ambiguity and uncertainty, and who wants that? Your wholesaling service adds value for the seller… and perhaps inspires a better night’s sleep.
Is the Price Right?
Don’t just get a contract to get a contract. I know, I know, you’re hungry for the deal, and I admire your passion. But you’ve got to agree on a price that you know works.
If you negotiate with a seller and sign at a price that you’re not comfortable with, um… that’s no good! Sign for a price that makes sense and makes you feel confident, so you can negotiate and get the deal done for below market price.
If Positioning Is Key, What’s Next?
Now you know how to position yourself for maximum success and less risk of getting your sellers all fired up, in a not so good way, should they see your property marketed at a higher price than what they’re contracted for.
In the next lesson, we’ll tackle the art of marketing your properties if you don’t have a cash buyer’s list. For what it’s worth – you should. But if you don’t, don’t sweat it. Stay tuned for more awesomeness.
Whatcha Think?
Got any thoughts or questions about what we covered today? Talk to me in the comments section below.
Position yourself for maximum success BEFORE you market your properties without a cash buyer’s list.
Always shoot from the hip and be honest.
Remind sellers often that you’re wholesaling to get profit out of property. What happens after they receive their contracted dollars is irrelevant.
Make sure you’re agreeing on a price you both feel good about, one that makes sense.
Continue to be a straight shooter, always!
Sean Terry
is a former US Marine who led his platoon to battle in Desert Storm and was recognized with multiple awards for outstanding leadership and drive. He has traveled to over 30 Countries around the world serving our Country and learned that fear is just a weak state of mind. After exiting the Marine Corp with an Honorable Discharge he bought his first apartment complex 17 years ago, at the age of 22; he then went on and started a successful sales and marketing company for six years, producing $5,000,000 annually in sales. He opened 6 offices across the country including Phoenix , Raleigh , Cleveland , Naples , Jacksonville , and Pensacola. Because of the success, the parent company employed Sean to travel the US to motivate and train company sales reps; on several occasions the seminars reached 1000+ people. He also executed hundreds of real estate investment transactions, with a cumulative transaction value of approximately $120,000,000. Such investments have included Residential Properties, Raw Land Development, and Multifamily Complexes ranging from single-family homes to 138-acre parcels and 10 Unit to 300 Unit Apartment Complexes under various investment companies.