It takes a few contingencies to get past the hurdles of virtual wholesaling. With the inevitable challenge of having no interested buyers, a savvy wholesaler has to know all about the strategies mentioned in this episode. Briefly but concisely, Lauren Hardy coaches the ropes on how to get on your sellers’ good side and get even closer to closing that deal. Not only that, but Lauren also sets the tone in building rapport and maintaining a good relationship with your sellers.
Listen to find out the next steps when you’re stuck at zero buyers.
Wholesaling Quicktip – What to Do When You Can’t Find a Buyer for Your Wholesale Deal
I’m going to talk about a situation that came up for one of my students. I want to share with you the experience and the advice I gave because, believe it or not, this is going to happen to you. If you’ve done enough wholesale deals, you are going to run into a situation where you cannot find a buyer for a property that you put under contract. It’s only a matter of deals and deal volume that you’re going to run into this situation. If you do not run into this situation, I’m going to argue that you have not been doing enough business. What do you do when you put a property under contract but can’t find an interested buyer? I’m going to share it with you. First, before I give you what to do, I’m going to explain the situation that my student was in.
She had put a property under contract. The price that she put it under contract was a little too high. She walked buyers in it, had buyers look and inspect the property, and none of them were making any offers. She had no idea what to do from there. She was freaked out because she didn’t know what to tell the seller. What I told her and everyone to do is you need to set the stage for this to happen in the seller’s mind from the get-go. Before the seller even signs your purchase agreement, you need to lay out the possibility that you are going to go inspect this property. There is a chance that the repairs are going to be higher than you anticipated, and you might need to adjust the contract price.
If you have not run into the situation of not being able to find a buyer, you probably have not been doing enough business.
If that happens, the seller is going to have the option to say, “No, they don’t want to do it.” If you cannot honor the price that you’re quoting over the phone because you’re virtual and talking to this seller likely from another state, you tell them that you will let them know what that price would be. It’s their option if they want to keep going forward with the sale or not. My student was freaking out and got her tail in between her legs. She promised the seller $60,000. No end buyer is biting at the price that she’s offered this property. What do you do?
The first thing I did was I said, “You should have prepped the seller a little bit more. You need to be upfront and honest with sellers. You need to tell them this is a possibility.” That way, you’re not even nervous about making that call. After the inspection, you can flat out say, “This is a possibility. This could have happened. It looks like it is.” You go from there. Usually, the seller isn’t that upset. The first step that I gave the student was to try to find a joint venture partner. I call it a JV partner.
If you can’t honor the price that you’re quoting, let the seller know that it’s their option if they want to keep going forward or not.
Find a joint venture partner and see if they can move this contract for you. If they can’t move the contract, see what their buyer feedback is or what their feedback is. They might make it easy for you and say, “You’ve got this thing priced way too high. You need to be at $30,000 to move this contract. “At least now you have something to work with, and you’ve got a partner that’s going to help you through this. I personally am a JV partner in my territories.
We have saved a lot of wholesalers who couldn’t move their contracts, but we could because we have a massive buyers list. We have buyers that they don’t have. Look for a JV partner like that. If you want us to be your JV partner, definitely reach out to us. My first thing is to try to save or salvage this deal as is. Next is, you want to get buyer feedback. As you walk the buyers in, which my student said she had walked buyers in and nobody was biting, I asked her, “What did they say? What price would they have taken the property at?”
She should have gotten the repair and the price feedback, the price they would have paid if they were to buy it. That way, she could communicate that with the seller. When you get buyer feedback and have a price that they would take, you can tell the seller, “We need to adjust the pricing on this contract to account for X, Y, Z,” meaning the repairs, the roof, the foundation. Lay out the repairs for the seller. “We need to adjust this price to account for these repairs. This is the price that we are requesting,” and see what they say.
Sometimes the seller is going to need to think about it or walk away or say, “Yeah, let’s do it.” This is part of the negotiation. Don’t look at it as, “I’m asking for a contract reduction,” and make it a big deal in your head. If you set the tone and are upfront with the seller from the start, this is all part of the negotiation. The seller’s expecting you to inspect the house, come back and say, “It needed more work.”
My last piece of advice is to be upfront with the seller and tell them what you are doing and who you are. You do wholesale houses and sell houses to investor partners. You’ve worked very hard to have a secret buyers list that nobody has. These buyers only work with people like you. You are going to walk them through the property and see what they say on the home. You are going to report all that to them with full transparency.
Be honest and upfront with sellers in the business that you are in. If you want to learn how to virtually wholesale, have that coaching and that mentorship that I feel is very important to get you through these sticky situations, check out VirtualInvestingMastery.com. It’s all virtual wholesaling. That’s all we do. Give that a shot. I’ll see you next time.
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About Lauren Hardy
Lauren Hardy is a Virtual Investing expert and Real Estate influencer who owns multiple companies in the real estate industry including real estate investment, coaching, and software companies. She is also a Wholesaling Inc coach and co-host of the Wholesaling Inc Podcast.
Her experience in the last decade has been focused on real estate investing and creating products and services to serve the real estate investing community. If you are interested in investing in real estate virtually, house flipping, or virtual landlording, Lauren’s your girl.