Tom Krol reveals one of the BIGGEST Wholesaling mistakes many wholesalers make in their business and shows you how to avoid it. This “mistake” is psychological in nature and if you don’t change it now, it will most certainly effect your business.
If you look deeper into the problem, it comes from a scarcity mindset. In order to fix the problem, you must first be honest with yourself. As with most everything else in life, awareness is key.
Over time, this (not so) little mistake can absolutely cost you your wholesaling business. Today, he talks about what it is, where it comes from and why people do it. But most importantly, how to avoid making it in the first place!
This little mistake can cost you thousands of dollars over time. And if you don’t correct it now, it can even cost you your wholesaling business. Take it from experience.
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Welcome to another episode of the Wholesaling, Inc. podcast. Today, we are going to be going over an amazing tips specifically for wholesalers and wholesalers who want to explode their business. I’m super excited to be with you here today and I’m about to pour on you some information that is going to absolutely change the whole selling game for you and your business. So this is very exciting. Let’s get right into it and let’s get started.
What I want to talk to you about today is a difference between wholesalers who are doing very, very, very well and the wholesalers who are kind of struggling to get by and they’re on that roller coaster of income and deal flow and you can’t figure out why. I am here to tell you today that the number one difference between the wholesalers who are making it and crushing it and the wholesalers who are kind of just scraping by is one thing and here’s what it is. It’s leveraging the deals. What does that mean?
What happens is so frequently wholesalers, especially new wholesalers will as a wholesaler, they adopt the anxiety of the motivated seller to sell the purchase agreement quickly. So let me say that again. What happens so frequently with wholesalers is, as a wholesaler, they adopt the anxiety of the motivated seller to sell the purchase agreement quickly. This is a huge mistake. This is what successful wholesalers have figured out. The name of the game in wholesaling is to find a discounted property. Once you do that, the world is your oyster. What you have to do is as soon as you get a property under contract and you want to move as fast as possible to do that, you want to slow down, slow down. As soon as you get that property under contract, slow down. Do not adopt the anxiety of the motivated seller to sell the purchase agreement quickly.
That would be a huge mistake, but what happens so frequently as new wholesalers is they’re anxious to get that piece of sold as soon as possible. The truth of the matter is you have all the time in the world. Take your time. You want to get highest and best for that offer. If you’re not sure if you’re doing that or not, look at your assignment fees. If they’re very, very low, that means that you have a small cash buyer list and you’re rushing to sell that purchase agreement. What I want to give you today is key information for really exploding your wholesaling business, truly exploding it and turning it from a job into a business. The reason that you want to do that is because deal flow is just as important as cashflow, especially when you’re automating a business, a business that is a servant to you and that you are not a servant to.
What do you want to do? Here’s the rules of the game. As soon as you get a contract, as soon as you get a house under contract, you want to slow down. First rule, don’t tell anybody about that deal until you tell everybody about that deal. Now, some people have a lot of anxiety about that, right? First of all, they’re excited about a new deal. They want to tell everybody, right? They want to tell buyers they want to get their opinions. What do you think? What do you think? Help me give me a price and they’ll say something like, “Oh, well this buyer is such a proven good buyer, so I don’t mind having them take a peek.” No, don’t do that. It’s crucial that you have a big cash buyer list and that’s going to be a key in this.
Now, how do you get as much money as possible for each deal? What you want to do is as you have that deal under contract and you let all of your cash buyers know about it at the same time, now you want to go for highest and best. What some people will do is they’ll say, “Well, that’s really scary because that might offend some of my cash buyers.” Well, here is the deal. Who cares? Cash buyers are a dime a dozen. Cash buyers are everywhere right now for wholesale deals, so take your time. Don’t take the first offer that comes in. A great way to do that is to put somebody in between you and the buyer. Don’t allow your buyers to communicate directly with you. Hire a disposition manager. Put somebody in between you and the cash buyers, but that is the secret guys.
The secret is if you want the biggest assignment fees and the most deals possible, you need to leverage every deal for as much money as possible. The way to do that is do not adopt the anxiety, the motivated seller in their need to sell the property quickly. It’s a huge mistake. It happens all the time and you’ll see new wholesalers do this. They’ll put a property under contract and they’re just as anxious to sell it as quickly as possible as the seller is. It’s a huge mistake, so try to avoid it if you can. All right. It’s been awesome spending time with you. I wanted to share that quick tip, so have a great day.