Most traditional brokerage companies have a minimum standard, commission-wise, because of the multiple dispersion of equity prices. On the other hand, many properties have been abandoned and left vacant.
According to statistics, unpaid property taxes rack up to $14 billion a year because of these properties. This is where wholesalers come to the rescue—they relieve sellers of distressed properties and turn them into livable places. Plus, it helps the community to cover a fraction of those property taxes.
In this episode, Brent Daniels enthusiastically explains why wholesaling is ethical and how it helps the economic forces in a community.
Wholesaling Quicktip – Why Wholesaling is the Most Important Job in Real Estate
Most traditional real estate brokerages will not do deals under $100,000. Many of them have got a minimum standard on what they’re willing to make commission-wise because it gets chopped up in so many different ways that it’s often not worth their time. In some markets, it’s under $200,000, if you can believe it. In some bigger markets, it’s under $300,000. They won’t touch things under $300,000. That’s the absolute truth in some real estate brokerages.
Who serves these people? Let me hit you with some stats. This is going to be bananas. You can Google vacant homes in America. In the 2020 census, there are 11 million. 8.6% of the properties are not just vacant. There’s more than vacant, by the way. These properties are vacant for a year or longer. Almost 12 million properties are vacant. What happens with properties that are vacant in your marketplace and in your community?
People are breaking into it, but most importantly, somebody’s not keeping up with them. The elements are destroying the property bit by bit, day by day, thunderstorm by thunderstorm, dust storm by dust storm here in Phoenix, whatever it is. Every single day, those properties are getting chipped away at a little bit and a little bit, but that’s not even the biggest thing.
People will trade potential equity in their property for speed and convenience.
Do you know what the biggest thing that happens with vacant properties is? Typically, they’re not paying their property taxes. Let me ask you. How many realtors are specifically going after vacant homes? How many realtors are driving for dollars, looking for the roughest houses in the marketplace, seeing if they want to sell their property and consider an offer on their property? Not many. Who does it fall to? It’s us, beautiful wholesalers.
That’s what we do. We go out there and try to help this part of the community. There are 140 million properties. This is a fraction of the pie’s amount of actual residential properties in the United States. This is what we’re going after. Remember, we go after properties that there’s a problem with it. There’s some distress, whether it’s financial, emotional, situational, whatever it is.
Remember, people will trade potential equity in their property for speed and convenience. This is what I’m talking about. This is the market that we are serving. Not only that, unpaid property tax, $14 billion a year. Do you know what property tax pays for? I didn’t know for a long time until I started getting into it, owning property and seeing the breakdown of where it goes. It goes down to the five Ss, Schools, Safety, Spaces, Streets and Sanitation. $14 billion in our country is not being allocated for this.
Are you kidding me? You wonder why I stand up here with so much energizing enthusiasm, encouraging people to go after these properties here. Guess what happens when these properties go under contract, get renovated, livable again and people are living there? The property taxes are getting paid. What happens in property taxes? Schools, streets and securities are better. The police, firefighters, the spaces, parks for kids and families, all of the public spaces, sanitation, all of these things come from property taxes.
We’ve got so many properties that aren’t getting paid. We have so many vacant properties. $14 billion a year is unpaid property taxes. That is why I’m so passionate about wholesaling real estate. That’s why I feel like it’s such a noble business to be in. Are you kidding me? Look who benefits from this. Follow the money. If you want to push that domino over and see who is affected when you go out and get a wholesale deal, certainly it’s the cash buyer and the distressed seller.
How about all of the neighbors, the real estate agents that get the list, show and sell that property, the new home buyers, the families that are buying those homes, the mortgage company, the title company, the home warranty company and the inspection company? I could go all day. If we had it on our screen, it would be going like credits all day long of the people that financially benefit from us doing our job every single day.
Wholesale is wonderfully ethical and moral. To be honest, versus being a real estate agent, we’re doing the tougher work and the work that makes a huge impact in our community because it is the stuff that other people don’t want to do. Real estate agents aren’t being trained on how to go out and find these property owners, have a conversation, follow up with them and move them down the path to sell their property and get out from underneath this. That’s why we exist.
If you’re interested in joining the most proactive group in real estate investing, it is the TTP program. Go to WholesalingInc.com/TTP. I personally mentor you. You get my cell phone. We text and call. It’s crazy. It’s bananas, but it’s the truth. I want you to be as successful as possible. I want to work with you and I love you. If you’re interested in that, check it out. Scroll down. Keep scrolling the little scroll things that are tiny because there are so many testimonials. Nobody has more testimonials. If it feels good in your gut, sign up for a call. Until next time. You’re the best, TTP.
About Brent Daniels
Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…
Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!
Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…
A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!