While unfortunate to note, not many wholesalers truly know the unmatched value they offer to sellers. In this short but awesome episode, virtual investing coach Lauren Hardy gave a clear insight into the massive value only wholesalers can provide.
Not only that, she also shared how she handled a challenge she encountered. If you’re unsure about the value you provide as a wholesaler and not sure if you’re doing wholesaling right, this episode is for you!
*For the entire week, we are offering $1000 of the tuition cost of each of our programs, Wholesaling Inc Tribe, TTP, Virtual Investing Mastery and REI Radio.
As long as you schedule your call by or before Midnight on Friday (11/27), when you join, you will still be entitled to the $1000 discount.
- What wholesalers can offer sellers
- How you can tell if you’re the best fit for the seller
- Why it’s crucial that you know how to handle tenants
- The different kinds of sellers
If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!
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Hey, what’s up guys? My name is Lauren Hardy and I’m a virtual real estate investor. What that means is I buy, I flip and I wholesale virtually, meaning outside of my backyard. For me specifically, I go out of state.
Today, I want to talk about how wholesalers help sellers in their transactions. So the way that wholesalers can really help sellers is that we offer convenience in time. I like to really illustrate this with my own personal experiences as being a motivated seller. Because I think if you guys just hear the stories that I have to tell, it’ll help you realize where your place is as a wholesaler and how you can help sellers as well.
So I have actually been a motivated seller more often than you might think. And that’s because I started out as a house flipper. So as a house flipper, we are buying lots of deals and some of them are home runs and some of them you wish you’d never bought. And I have absolutely had both experiences. Luckily, I’ve had more home runs. But on a couple occasions, I have bought some homes that I wish I could have thrown away. I want to give an example of one in particular, so you can see how had I had a wholesaler come to me and offer me cash for that property, I probably would have sold it to them.
So I bought this property and I call it Roanoke because it was off of Roanoke Street. And it was an out-of-state property that I decided to flip. I got this property, had a smoking deal.,I thought. I bought it for like $70,000 and it was worth $150,000 if it was fixed up. And I didn’t really think it needed that much in repairs. So I thought, “This is a no brainer. I’m going to put about maybe $30,000 in it and profit the rest.” It’s going to be an easy remodel. It was a fairly newer home. It’s not that it needed that much work, it just needed some cosmetic stuff. What could go wrong?
Well, everything went wrong. I bought the home. And soon after … honestly, anything that could go wrong did. The house needed way more in repairs than we had thought. The house smelled like cat urine, it was awful. We found out later cats were living in the walls, which was really sad. The first contractor we had took my money, my initial deposit, and ran with it. So he didn’t do any of the work and he ran. And still to this day, I haven’t gotten my money back. That delayed us several weeks because then we had to go find a new contractor to give us a new bid. We bid three new contractors, so that took time. Between the holding time, the holding costs, the headache, the stress, not to mention at one point, this property was vandalized. I wanted to unload this thing. I would have paid somebody to take this house. And let me tell you, I did pay for it.
So I was stubborn, I went through the entire remodel, fixed it up. The house looked beautiful, but it took like four months to get this all done. By the time I listed it to sell, it didn’t sell or I wasn’t getting the offers that I thought I would get. And we even had to go through a couple escrows because our first buyer backed out. So at this point I had been holding onto this property for like seven months. And I’m a professional house flipper, you guys. I am a professional, I’ve done hundreds of these things. And I still have found myself in the position to be a motivated seller.
So I looked back and I remember at that time I go, “Why didn’t I just wholesale this to somebody else?” Because I probably would have made money off of the wholesale. But instead I thought, “I want to take my luck on this and gamble on it. I’ll make more money.” So I did what I did. In the end, you wouldn’t believe it, I didn’t make a dime. In fact, I lost over $10,000 on that house. So to illustrate, I thought that this would be a helpful story for you guys to hear that even the most savvy investors have properties that we want to unload. And this was a particular nightmare property for me.
Now, when you are talking to a seller who hasn’t flipped hundreds of homes, who maybe this is the only house that they own, or maybe they only own a couple, and this is like one of the first sales they’ve ever done. That is very stressful. Construction, managing everything, managing a home being put on the market. It’s super stressful and not a lot of sellers have that type of time. There’s also the situation and it comes up when the house needs a ton of repairs, the seller doesn’t have the money to repair the home. So a traditional market sale is an ideal. A lot of times in my market in particular, we get homes that have repairs that are so bad that a lender would not lend on it. So a traditional buyer can’t even buy that property. That seller needs a cash buyer like myself to buy the property in order for them to unload it.
So that’s where the wholesaler comes in. The wholesaler is looking for sellers in those situations and we are helping those sellers get out of that situation. I’ve had so many sellers thank me at the end of the sale because they knew that this was the best option for them. And I was able to facilitate their needs. So they were able to sell their house at a price that they felt good about. And I found an end buyer who was able to take that property, fix it up and either rent it out or flip it on the market. So it really was a win, win. Us wholesalers really do provide a lot of value to sellers and end buyers as well. So there’s definitely a place for us in the marketplace.
So you’re probably doing a lot of direct to seller marketing at this point. But let’s say that you are starting to get into your journey and you want to know what are the best types of scenarios where we are a best fit for a seller. I am not afraid to tell a seller that I might not be their best fit. If the house is already remodeled or it’s in fairly good shape, and the seller has the means to list it on the market and they want the absolute highest price and they’re willing to wait for it. Then I am honest with the seller, I let them know, “I might not be your best option.” But if I have a seller who has any one of these scenarios, I know that I am probably their best option and listing it on the market isn’t.
So it could be that the house needs a lot in repairs. It can be that this seller is going through some kind of financial situation where they need the funds in under 60 days. It could also be that the seller has a tenant in the property and the tenant is being difficult. And I am really good at handling tenants and I advise as a wholesaler, you need to really educate yourself about tenant laws in your state. And you need to get good at handling tenants as well. Handling tenants is something that a lot of property owners really are adverse to. They don’t want to do and it freaks them out. And they would actually rather sell their property at a discount, so you take that problem away from them.
The seller could also be maybe moving to a new area, maybe they had a job transfer and they need to quickly move and they need to sell the house fast. Or this is my favorite one because it comes up more often than you would think, I call it the free loading family member. Sometimes sellers are super sweet and they let family, friends or family members live in their home and they give them a break on the rent. And the family member takes advantage of it for a little bit too long. And it gets to this awkward point where the seller doesn’t want to be giving those handouts anymore, but they also don’t want to look like the bad guy. So it’s easier for the seller to sell the property to another investor and let us be the bad guys. That’s a situation that comes up a lot, so make sure that you look for it.
Another type of seller is the too rich to care seller. I’ve had sellers that are so well off that little rental property that they have in the Midwest is not that important to them. Their time is more important to them. So they love someone like me to just give them a fair offer. All they have to do is sign some paperwork and they don’t need to deal with the home anymore. This is just an example of the different types of sellers that we help. So you can see that we really do bring value to these people. And this is also going to help you when you’re talking to sellers, you’re going to be able to hear their situation. And you’re going to know whether you’re a good fit or just be honest with them and refer them to a realtor.
Well, anyways, guys, I hope you like what you heard today. I hope it was helpful, insightful. If you want to learn more about virtual investing, go to www.virtualinvestingmastery.com. And I hope you guys follow me, friend request me. Want to hear what you think about this episode. Have a good one, thanks.