Have You Noticed More Competition?
It’s no secret. Wholesaling as a form of investment career is getting more popular. Even in BiggerPockets, investors are starting to write articles such as “I Used to Write Off Wholesaling: Here’s What Changed My Mind” by Mark Ferguson. It is becoming even more apparent to the Realtors® that I meet every day through my podcast at The Red Pill Investor.
The reason is obvious. As Mark outlined in his article, the benefits of wholesaling a home versus the traditional “repair and sell” flip are clear. As he specifically states so eloquently…
- No cash is needed when you wholesale if you use an assignment of contract or double close.
- No contractors are needed when you wholesale.
- The buyers are investors who are paying cash; no financed offers and picky owner occupied buyers.
- You don’t hold houses for months while they are being repaired and listed. You eliminate the risk of a market change when holding properties for months
Crap! Now What?
Have you ever heard this one? “Oh, I can’t wholesale in my town… the market has too many wholesalers in it already here.” This objection has been crippling Realtors® and Wholesaling Investors ever since Cain got a little piece of land “East of Eden“. In order for you to be powerful, you need to be able to handle this mindset block!
How about this one? “Oh, I can’t wholesale in my town… it’s just too small.” While this mindset does have some validity in some cases; (i.e. towns that are extremely small (under 50k residents) it does not mean that you cannot overcome and still win! If you have at least 80k residents in your general area, you have enough for a six figure business!
Related podcast: How to Flip 17 Homes and Gross over $135,000 In Your First Year!
The truth is, it really doesn’t matter to you how many wholesalers, or Realtors® who Invest there are in your market. You can capitalize on this and use it to your benefit. There are 3 specific ways to overcome this influx of new people who will undoubtedly join the real estate market after the first of the year!
Use a systematic approach towards creating a duplicatable, repeatable wholesaling business. One of the chief concerns of typical rehabbers or Realtors® considering investing in any way is the ability to “handle” the volume of business. When you use The Red Pill Sales System to create your business, you are able to control the flow and momentum that comes with your activities.
Antidote #2 Lead Generation 24/7
Create trustworthy lead generation systems like Investor Carrot to help propel your business to generate quality leads 24/7. It’s no secret; mailers, bandit signs, and pay per click systems will all generate business for you. However, if you are going to create systems to give you the highest quality leads possible, you will need to catch them early in their “life-cycle”.
Many times, the homeowners you want to meet the most, are the ones who are unsure about their options. By the time they are calling on a mailer, or a bandit sign; you may already be facing unwanted and totally unnecessary competition. Find out about the prospect before they become a lead, and you will almost guarantee success!
Antidote #3 Get Accountable!
It’s not a mystery why the best of the very best get accountability. It works. Trust me when I tell you, that when you start creating meaningful accountability in your life, you will do whatever it takes. Want an example? Why, I thought you would never ask!
Let’s say that I want to do 15 wholesale transactions in a year’s time. 15 deals, on say an average of just $3000 each. That is a gross income of $45,000. If your skill level allows you to go higher into say 5 or even 10k per deal on average, then the numbers are even higher! However, for the sake of this discussion, let’s say 15 transactions that I want to do.
So I commit to talking to 15 new contacts per day, every working day to make that happen. To add accountability, I might say to my two daughters…
“Guess what girls! I need your help! I am trying to make enough money to take you two and mom to that Disney Cruise you have always been talking about. I’ve got a plan to do it, but it means I have to talk to 15 new people every day. Can you help me?”
Now of course, they will be interested in listening to what I have to say now! If I give the girls the authority to ask me every day if I made my contacts or not, and then more authority to ask me WHY not if I didn’t.. trust me… they would be on me everyday!
Bottom line, if you want to accelerate your business to the next level. Get Accountable!
Let Them Come!
Competition brings out the best in all of us. Especially when you are prepared. If you on the other hand are new reading this, then recognize you have a unique advantage! You are reading this! The more experienced agents who invest and wholesaling Investors already have it “all figured out!”.
By remaining humble, and eager to learn, you will quickly discover that a natural curiosity about people, and their needs will lead you to all the deals you will ever need. Trust me when I tell you, no matter the size of your town; there is someone within 5 miles of you who needs to sell their home right now!
The question is… Will YOU be the one to help them?