Why do so many real estate wholesalers fail to get the results they hoped for while others seem to make money so easily with this strategy?

Some seem to leap in, start making big checks fast and then seem to keep making great money with multiple deals each month with ease. For others it can feel like they are just stuck, are still spinning their wheels after months, or just can’t breakthrough from doing a deal or two a month to that 10 plus sweet spot. What makes the difference?

1. Goals

You aren’t likely to get what you really want without tangible goals and effective goal setting. You can’t just have fluffy wishes. Set concrete milestones, and invest in really working them.

2. Marketing

The number one reason real estate investors fail today is probably marketing. You don’t have a business without marketing. If you do one thing - get a good marketing team and hit it hard every month. Make sure you are engaging in a good mix of marketing mediums from mail to email to online ads and more. Commit to quality marketing and staying consistent.

3. Having a Good Lead Funnel

There are lots of ways to generate leads online and get traffic to your web pages. Yet, there can still be a big gap between awesome marketing and traffic generation and getting real leads and conversions that turn into real estate closings and cash. Be wary of blowing money on ads until you’ve got an effective landing, good looking website, and a system for handling incoming leads effectively. One big mistake being made here today is that real estate investors are blindly following gurus and marketers who make big claims without any rational to back it up. They say they offer ‘websites with SEO’. What does that even mean? What do they consider good SEO? How do they know what your best clients are searching for? Be sure to apply common sense thinking, think for for yourself, do actual research and be willing to test different options.

4. Follow Up

You can bring in thousands of good leads by phone, email and social media. It won’t make a penny worth of difference unless someone is following up and closing them. If you don’t have the time, hire someone to take the calls and return Facebook, email and website inquiries immediately. That lead is probably going to keep searching and contacting the competition until they connect with someone. Be the first one to follow up.

5. Taking Action

You can sit in all the classes, go to all the events, and pass by great deals every day. You won’t get paid until you take action. Successful wholesalers are making offers every day. Know how many offers you need to make each day to hit your closed deal and income goals. Don’t do anything else until you make that many offers.

 

We’re seeing more and more billionaires. They can be exactly the type of clients that can completely change your wealth as a real estate wholesaler as well.

Forbes and Fox Business note that Kylie Jenner is set to become the youngest ‘self-made’ billionaire ever. At just 20 years old she has outpaced Mark Zuckerberg, and has already amassed $900M from her makeup line and receives over $100M in revenue from TV show appearances and endorsements on social media.

She’s just one of many newly minted younger billionaires. As with the other members of Forbes’ richest lists, if they don’t make the bulk of money in real estate, they soon find they need it to preserve and multiply their wealth, and celebrity home flipping is becoming even more common. Yet, if they are going to be able flip houses in the fashionable destinations they love most, they are going to need to find wholesale deals.

These can be great clients and end buyers for real estate wholesalers. They have the cash, they are unlikely to nickel and dime you to death as less affluent buyers will do. They can be great volume buyers, and will take on those big dollar properties that can put hundreds of thousands or a million or more in your pocket in a single deal. Bigger deals can even be easier to do than smaller ones for investors. Besides, for the same amount of work, would you rather make 10% or 50% on turning a $50,000 home or a $5M home?

How do you land them? It doesn’t have to be as hard as you think. Make sure you get connected, hang out in the right places, and are highly visible online when they are searching for properties.

If you aspire to become a billionaire yourself, then having billionaire and even millionaire clients can certainly help. Serve them well and turn each one into referrals and more wealthy clients to fuel your real estate business.

 

With Independence Day fresh in our minds, it’s time to flex our freedom in real estate.

Hopefully you’ve had the chance to celebrate the 4th of July, and maybe even take in some spectacular firework displays, spend time with great people, eat something fresh off the grill and to contemplate just how valuable our freedom is.

Sure, many had the freedom to take a day off and celebrate this week, but we’ve all got some even more important basic freedoms we can’t take for granted. The freedom to think, plan, work, give, start something new and take action.

The Freedom to Set Bigger Goals

Setting bigger goals costs you nothing, but can help you gain everything. If you are already wholesaling a house or two a month, why not set a goal to be doing 4 to 10 deals a month by next July? If you are doing 20, shoot for 20. With access to the best transactional funding your only limit is the goals you set for yourself.

Freedom to Get Started in Real Estate

You’ve got the freedom to get started in real estate if you haven’t yet. That’s huge. Billions of people have never had this opportunity and never will have an opportunity like this to change the dynamics of their finances, future and level of freedom and independence. How can we not take advantage of this?

Start Creating a Legacy

Our current freedom and economic strength is the legacy of a lot of work, sacrifice and big vision. Making great money every month as a real estate wholesaler is a good start. Stacking up enough wealth for retirement is even better. Though if you haven’t started working on your legacy, then it’s time to seize that freedom as well. That may be setting up a trust and putting real estate assets in it for your heirs. It could be building and donating a library or museum. You can even put your name on it if you like. Or it could be building an entire new smarter community. What will your legacy be?

Freedom to Give

We don’t just have the freedom to work, invest and gain, but to give and pay it forward to others as well. Perhaps you can start your own foundation. Support or plan a backpack drive for the upcoming school season. Or if you are still just gaining traction yourself, why not give by teaching and sharing what you’ve learned, or bringing on an intern, and empowering others to enjoy the freedoms you have?

What will you do with your freedom today?

 

Many real estate wholesalers are letting thousands of dollars in potential cash flow and income just slip through their fingers each month. Start monetizing these items and multiply your income.

A lot of real estate wholesalers work really hard to hustle and find and sell deals. Yet, they are often letting some of the easiest money just go to waste. Or worse, go right to the competition. By recapturing these streams of income wholesalers can hit their financial goals much faster and see more consistency in their incomes.

Leads That Don’t Fit Your Criteria

As a wholesaler you are digging up leads every day. If you are doing well you probably have a lot of calls, emails, and contact form fills from those that just don’t meet your criteria for some reason. These will typically far outnumber the deals you actually do. The price range, neighborhood, level of repairs, or asking price just might not be a perfect fit. Yet, these deals can still be a great fit for other investors. Trade them or get a referral or assignment fee for them.

Homeowners Who Don’t Want to Sell Cheap

You are likely running into a lot of homeowners who just believe they can get more for their homes if they hold out for a better offer or list it for sale with a Realtor. Maybe they can, maybe they can’t. Why not refer them to a Realtor? Maybe there is a legal way to get compensated for that. If no one buys the listing, you can always go back and make another cash offer.

Movers Needing New Housing

How are you helping all your sellers with their next housing solution. Many will need to buy or rent something else. Are you helping with that or just giving that business away? Every wholesale transaction you do could easily lead to 1, 2 or 3 more, all without having to dig up a new lead.

On Site Advertising & Sponsorships

If you really have a great website (not the Investor Carrot type) and have invested in SEO and ads and are generating good traffic, then there are plenty of people who are going to be willing to pay to get in front of those website visitors and the ones who make it on your email list or join your Facebook page. They can pay for ad space, or sponsor your site and marketing efforts. That may not be a lot of money each month, but once you build a tribe of sponsors and set them up to produce residual passive income for you each month, it’s easy extra cash flow to fuel your wholesaling business or surplus funds you can treat yourself with.

 

What are the most common mistakes real estate investors make when hiring and working with outsourced staff and freelancers? How can investors and real estate businesses recruit and wield these assets more profitably?

Outsourcing has become the way to run a business and hire today. It is very hard to remain competitive when maintaining an in-house staff today. However, this type of hiring and labor management is still new to many real estate CEOs and investors. How effective and profitable these freelancers prove to be in your organization depend a lot on how they are hired and allowed to work.

Watch out for these five common blunders and how to ace them instead…

Being too Vague or Detailed in Job Postings

Want to hire the best freelancers for your real estate business? Be wary of being too vague or too detailed upfront. Put yourself in the shoes and mind of a top freelancer. Experts are going to be looking for roles they have experience in. There’s a big difference between an SEO ‘expert’ and an online marketing professional with real estate SEO experience. If they don’t know this is a real estate gig, they are probably just going to pass or reject the offer. On the other end of the scale, the best are fielding multiple job offers and are browsing hundreds of job postings each day. They simply don’t have the time to read a book about the job description or jump through a lot of hoops. Make it easy for the best to apply. Then be very clear about the deliverables and role once you narrow down your short list of your top potential hires.

Not Prioritizing Value

When you are out there evaluating house deals price is really irrelevant, right? This is especially true for flippers and property wholesalers using transactional funding. How much the property costs doesn’t matter. As long as the value and profit is there. The process is the same, but if you can make $200k flipping a million dollar house, without using your own money to fund the deal, that’s better than doing the same amount of work to flip a $50k house and netting $10k, right?

So, when shopping freelancers, look for the value. For example; if one charges $80 an hour, but can deliver the same results in one hour that a $20 an hour freelancer take 6 hours to do, the one with the higher rate is actually cheaper and more profitable.

Failing to Fully Utilize Freelancer Assets

Freelance team members are assets. Yet, they are often sorely under-utilized. You don’t want to throw too much work on a team member that is outside their area of expertise. Even if they are good it can be counterproductive. Yet, make sure you are using each one you have to their maximum value. If they have more experience in one area than you do, listen and test their ideas. Then get out of your own way and let them do their best possible work.

Not Sharing Goals, Values and Milestone Objectives

It’s impossible for your team members of any type to help you reach your goals and to appropriately represent your brand and company values unless they know what they are. They are not mind readers. Make sure you share these critical factors and keep them visible.

Being Slow to Pay

Most freelancers work on a very short income and cash flow cycle. That is usually days or a week, versus how some real estate businesses try to stretch out invoices with other vendors for 30 or 90 days. They typically have a dozen plus clients at a time, and are naturally going to do their best and prioritize work for those they know are going to pay, and pay on time. Plus, it gets very expensive for them to chase down invoices. If you want fast, top notch work, be their best client.

 

Looking for more real estate wholesaling leads?

There are many ways to find wholesale house leads today. There is one which is frequently overlooked and can provide some of the easiest to close and most profitable deals.

Leads for Real Estate Wholesalers

With the booming housing market investors are enjoying right now even the MLS can produce house deals to wholesale and flip quickly. Then there are bulk REO and note buyers that frequently have volumes of properties they hope to shed, as well as new software and list sources which help pinpointing off market prospects. Plus, it’s never been as easy or affordable to run inbound online marketing campaigns.

No wholesaler should be coming up short on deals right now.

Tap into Rehabbers

While there are plenty of sources of potential deals and lots of properties being floated and passed around as deals today, wholesalers still need to make sure they are contracting on house deals that really offer good spreads and are getting a good overall ROI, including their marketing.

This makes today’s house flippers and rehabbers one of the best and most overlooked sources of quality leads.

Fix and flippers are putting a lot into marketing directly to owners for deals. They are mailing, cold calling, emailing and running ads and signs. Most only end up being able to do a fraction of the leads that come in. Most rehabbers have tight criteria for the homes they will work on, and have limited capital and time to work on fixer uppers. That means they are typically left with dozens (if not more) motivated seller leads each month. Most just let them collect dust, because they don’t know what to do with them.

As a wholesaler this is your chance to step up and create more win-win-win scenarios. You can help the sellers actually sell their home, the rehabbers to monetize those leads and do more marketing and your buyers list to get more deals. Plus, you win too.

How to

There are a number of ways to tap into this lead source, including:

• Responding to their mail pieces

• Networking at REIAs

• Pick up the phone and call

• Get on their email lists

There are many ways to take down these deals too:

• Visit job sites and make offers on rehab houses before the work is complete

• Arrange to buy excess leads in bulk

• Co-wholesale them together and split the profits

• Take assignments and close with your transactional funding

• Take live referrals on deals they can’t handle

If you aren’t coming up with all the deals and dollars you hoped to from wholesaling try tapping into this lead source.

 

Californians aren’t happy. 50% of those in the Bay Area say they plan to move out of the state in the next few years. What will it mean for real estate and investors?

Fed Up

A Bay Area Council survey shows half of respondents are planning to leave the state. That’s up from 34% in 2016 and 40% in 2017. It’s not just the Bay Area either. Some have relocated and taken their businesses to Southern California, but even there many say they are fed up and will move out of state.

Among their top complaints are:

• High taxes

• High property taxes

• High housing costs

• Politics

• Homelessness

Not everyone is likely to move out at the same time. Yet, with the ability to make the same wages working remotely there is little need to fork out so much income to live in CA when you can get so much for your money somewhere else. This makes it easy for many to make the move.

Where Will They Go?

Where are all the Californians going?

According to Trulia the top states for those exiting the Golden State from include:

• New York

• Nevada

• Washington

• Texas

• Arizona

Others may choose even more affordable states like Idaho or Ohio. There they can buy not only 3 houses for the average cost of $720,000 in California, but maybe even 14 houses. Live in one, rent the rest and retire instantly with thousands of dollars in passive income coming in. Then they can still afford to visit CA when they like.

Many states and even some countries are offering big financial incentives to new residents. This can range from a few thousand a year to $100,000. This includes Vermont, Alaska and Wyoming.

What Will the Impact Be?

There are still people around the world who love the dream of moving to California. That may offset some of the losses. Many are likely to drag their feet too. If they wait until another housing market correction kicks in they may not be able to leave, or will have to just walk away from homes and have to start fresh somewhere else.

That’s likely to mean decreasing demand for property in California and some significant spikes in population growth in other cities and states.

This is a great opportunity for real estate investors. Not just for those who want to buy CA real estate and help those leaving, but to get ahead of the curve and make a substantial income selling homes and investment properties to incoming Californians elsewhere as well.

Where are you moving and investing now?

 

Direct mail is a common starting point for real estate marketing for wholesalers. What happens when you hit a wall and your business stops growing, or you just don’t get the traction and action you hoped for?

Boosting Your Direct Mail Performance

Some very successful real estate wholesalers swear that direct mail is the only marketing medium they need to get all the business they want and can handle. So, it works.

If your response rates are good and ROI is good, you might just ramp up your mail campaigns. Instead of 5,000 pieces do 7,500 or 10,000, and so on. You can expand your market area if needed or hop into new markets to make up the numbers.

If your response rates could use some improvement consider:

• Finding better mailing lists

• Testing a variety of mail pieces

• Testing different landing days

• Investing in a professional writer for better copy

Going Beyond Direct Mail Marketing

Even if your direct mail game is on fire, it just makes sense to diversify. Sooner or later one of your mail campaigns could let you down. It’s just the nature of marketing. If that’s your only horse in the race, and you don’t have a solid reserve fund you could be out of business. Instead, consider diversifying your marketing mix early.

Other starter marketing methods may include:

• Basic social media marketing

• In person networking

• Signs

• Working through real estate agents

• Referral marketing

• Email marketing

• Real estate blogging

If you are ready to step it up, be aggressive and really go after growth and quick results consider:

• Paid social media advertising

• Google Adwords

• Ringless voicemail marketing

• Bulk text/SMS marketing

• Telemarketing

If you’re not sure which way to go, one great clue is to not only listen to the advice successful educators are offering, but what they are doing themselves. They may be telling you to do direct mail, but they are selling you on that through email, YouTube videos, webinars and radio ads. Think about it.

There may always be a place for direct mail in your marketing mix. It’s just wise to be diversified early and to have more than one thing working for you. If direct mail isn’t producing the results you hoped for, try something else. If it’s just hitting a plateau, then keep tweaking and testing, while trying out other media channels.

 

Father’s Day 2018 is coming up fast. What incredibly valuable Father’s Day gift ideas are there to jump on this year? What gifts might fathers want to give themselves and their families this year?

Give Real Estate

As a real estate wholesaler you are uniquely positioned and able to give others the gift of real estate. No matter what your budget is you can find some seriously discounted deals that can still make unforgettable Father’s Day presents.

It could be scoring a deal on your father’s childhood home and letting him restore it. It could be a fishing camp, a cabin in the mountains or a resort property or retirement home. Or an income producing investment property that will keep providing for your sons and step sons or son in laws who are fathers.

Run Father’s Day Specials

A good home is so vital. Why not run a special for all the fathers that need to be investing in real estate or putting their family in new homes? Give great deals for the next few weeks and make a big deal about it. Maybe you don’t even need to limit it to fathers. There are a lot of mothers out there who have to play both roles too.

Exercise Your Freedom to Take Time Off

One of the best and most valuable things about being a real estate wholesaler is the freedom the set your own schedule and take time off when it is important. Use that! What’s the point in having that freedom if you don’t use it?

Flex your freedom and take time off with some fathers. It could be your father, a child who is a father, a nephew, sibling, grandfather, grandson, step father, or a random father out there who really needs support.

You can just hangout and have fun or spend some quality time together. Or why not give them the gift of learning about real estate wholesaling and transactional funding. It could change their life and their legacy. It could have a great impact for good on many people in the next generation. You can give them a book or course on wholesaling, share some of your resources like lenders and title companies. Or even better, take them under your wing for a day and show them how you do it.

What will you give this Father’s Day?

 

Here’s the key information that can help investors sell more wholesale houses…

Every real estate wholesaler out there would like to sell more homes, right? Many could be moving a lot more deals, be making a lot more money and be building a better cash buyer list.

One of the biggest challenges is getting more potential buyers to take action faster, with better offers. There are still lots of options out there for buyers. What often holds them back besides simply trying to sift through all the house leads is being concerned and wary of making the wrong choice. They see less pain associated with not making a decision or buy, than with buying a bad deal.

Their time and funds for due diligence are limited. They can’t run a full analysis and pay for an inspection and appraisal on every potential house lead. They’d go broke. As a real estate wholesaler you also have to be conscious about how you spend your funds and time, but you can close this gap.

Just like when renovating a house you don’t want to go over the top to the point where you are bleeding money and are working inefficiently. Yet, providing a little more information upfront can mean you attract more qualified buyers, spend less time fielding inquiries from people who won’t buy, and you can speed up your sales cycle, while boosting profitability and deal flow.

So, what information can wholesalers be providing to help buyers make more fast decisions?

Remember that fear of anything is generally fear of the unknown. So, the more facts and data you can provide the more confidence you’ll give others in your deals. It will help your offerings stand out above most others too.

When it comes to the basics the more photos and video you can provide the better. It’s not like they are going to buy until they’ve checked it out anyway. They only thing you are doing by not providing this information is slowing down the process and thinning out potential buyers. If you aren’t local then you can ask the seller or agent for them, or hire someone to go out and do this for you. If the weather is ugly, have someone go back when the sun is out - it can make a huge difference. If you don’t have any photos then don’t waste your time advertising.

Providing an idea of the value or ARV shouldn’t be that complicated either. Many don’t, even though you’ve certainly done the homework for yourself already. This could be comps from an agent, an existing BPO or old appraisal.

If you can pass on surveys, title policies and lien searches, why wouldn’t you? It will only speed things up and add more value.

Repairs is obviously one of the biggest factors. What the property condition really is won’t change the number of people who will buy. By withholding this information you are only creating more menial time consuming work fielding calls you shouldn’t be. The number one reason people don’t buy is because without information they have to assume the worst. They have to assume this is a complete teardown or at least a gut rehab including foundations, roofs, plumbing and electrical. Plus, where they live a basic roof replacement might cost a minimum of $25,000. Where this property is located you might be able to put a new roof on for $5k.

So, pass on any ballpark quotes you have from others, or get free estimates from contractors and forward those. It can increase your odds of success and the premium buyers are willing to pay. Just because they know the real deal.

Rental comps can help too. What’s the rental potential and at what level of remodel?

Most importantly, what’s wrong with it? If you are advertising this at a discount there is something wrong. There is some kind of distress. If you don’t tell your buyers they have to guess. Their first guess is likely to be that no one else wants to buy it and there are massive repairs or liens attached. They automatically write your deal off. Be upfront. Maybe this was a probate sale, foreclosure, or the last investor ran out of money to finish the rehab. Share that info to add more value to your deals and help them sell faster.

 

How can real estate investors really find out what’s going on in a real estate market?

More new investors are getting into the game, and more experienced investors are finding they have to move into new neighborhoods and cities to get the same returns they were a couple of years ago. To make smart investment moves investors not only need to know the numbers on the deal they are looking at, but what the local real estate market is like too.

There are tons of online tools and resources at our fingertips today. Most of the best known ones are also best known for being wildly inaccurate. The numbers can lie. You can buy properties sight unseen in destinations you’ve never been to and make really good money. However, you can really lose your shirt and get stuck with dead weight that you can’t get rid of either. When you can, you want to get boots on the ground and get a real feel for a real estate destination yourself. When you do, here are five of the resources where you can learn a lot about the local market, without ever having to go online.

The Gym

Head to a few local gyms when you get in town. They will instantly tell you a lot about a destination. What gym brands are in town? How recently did they do their research and choose to make an investment there? This is a lot like tracking Walmarts and Starbucks. What are the people like when you get inside? Are there short term passes available (suggesting the area gets a lot of visitors)? If there are no gyms that may be a red flag that the area isn’t doing that well economically.

The Supermarket

Supermarkets and grocery shopping will tell you a lot too. What types of chains are in town or are moving into town? Is there a Walmart or Whole Foods? Supermarket chains can instantly tell you a lot about the strength of the local economy and whether it is a wealthier area or low income area, as well as what brands are betting on growth there. What types of foods do they have? Just the basics or gluten free, organic and more fashionable luxury items?

The Coffee Shop

Coffee shops are a great place to get the inside scoop on a potential investment destination. Are they serving fancy coffees or the basics? Is Starbucks moving in or shutting down stores there? Are there a lot of deals being made around you and people working online? Are people rushing or have the luxury of plenty of time to hangout? How much are they spending on their coffee? Talk to people and find out how they feel about the market. Are they buying, selling or investing?

The Park

If you’ve got kids the playground and park can be especially great places for some recon. Talk to other parents. Are there a lot of local activities for kids? How are the schools? How safe is it for their kids to run around by themselves? Are they finding enough house with their budget to fit their growing family into or are they thinking about moving somewhere cheaper?

Hotels

Local hotels will tell you a lot about who visits, passes through and lives nearby. They say a lot about housing costs, what type of workers are being housed there to develop infrastructure, and the features that are in demand. The hotel staff can also be a great resource for learning where the average local worker lives, how much they pay in rent, how much they make, and where they’d prefer to live.

 

Maximizing your time is critical as a real estate investor, agent or CEO. You must get more out of your time than ever today, and know smart time management practices that you can teach your team too.

Try these out and get more done, in less time…

Time Blocking

You know the tasks that you have, and that will come up on a weekly and monthly basis. If you don’t block time for them, then they get put off, or just don’t happen. Carve out the time blocks in advance so there are no excuses. For example; creating 2 hour time blocks every morning for marketing and generating new business. Or having your project manager reserve 4 hours every Friday to inspect rehab jobs before crews ask to get paid. Batching tasks by days can be even more effective. Then you spend less time jumping and adjusting between tasks. For example; batching all your calls for one day of the week. Doing all your marketing on a different day, and so on.

Underbook Yourself

Everything notoriously takes longer than you think. That includes calls with new clients, driving to meet sellers, and signing closing documents. If you book yourself solid for 14 hours a day, you’ll either end up actually working 18 hours a day, or a lot won’t get done. You’ll always be stressed out, and what you do will be so rushed it will be poor quality. Instead, if you only want to work 10 hours a day, 5 days a week, then schedule 8 hours or work. When things take longer or emergencies come up, you’ll still have a 20 hour time slush fund to handle it each week. All without working yourself to insanity.

Stay Off the Phone

Saying we are addicted to our devices today may be a huge understatement. Yet, that doesn’t mean you should be on the phone all day. Far too much time is wasted dialing, making small talk, and saying goodbye. If it can be solved with an email or text message, do that instead. Only use voice calls when you absolutely must.

Use Productivity Tools

Every real estate pro should be using collaborative online productivity tools like Google Drive or Trello. They allow you to create, edit, comment on work, delegate, and follow up on status without phone calls or emails. Things just get done faster and more accurately this way.

Understand that Non-Work Activities are Just as Important for Productivity

Professional bodybuilders and athletes understand that the time they spend in the gym throwing weights around is only a part of their success. The time they spend in competition is even far less than that. Some of the most important time they spend is in resting their bodies, getting in the right mindset, and ensuring they are eating right. Those things all make them more productive in the gym, and then able to perform at their best in the field or ring. So, go workout, learn something, and network over dinner.

 

Spring is here. It’s when smart real estate investors take a moment to spruce up their businesses to make great leaps forward for the next year.

You don’t have to roll up your sleeves and break out the plungers, but there are important moves to make if you want to make the most of the next 12 months.

Clear Your Mind

Real estate, business and investing is 99% a mental game. If you want to perform your best, you’ve got to have a clear mind. Commit to leaving any mental junk in the past and focusing on the future. Spend a few minutes or a weekend away getting new clarity on your purpose and mission, as well as what your time is best spent doing.

Spruce Up Your Office Space

Your working space has a direct impact on your performance. That’s true whether you have lots of office space under lease, work from home, or at a local coffee shop or coworking space. Take more control over your environment. Optimize it to inspire you and speed up your productivity.

Clean Out Your Deal Pipeline

You’ve probably got a sizable database or list of properties you’ve been watching by now. Some may be going no where are are dragging down you or your team. Others may be ripe to buy, but are being hidden by all the dead leads. Do a little list clean up. One great way to split local deals at this time of year is to drive them. It’ll get you out and reconnected to your farm area, and may yield new leads. Those that have started some spring cleaning on their homes probably aren’t too distressed. The owners have money to blow. Those who haven’t and still haven’t cleaned up from the winter may be even more motivated than before. Make new offers on those.

Paperwork

This is the perfect time to clean up your paper. Your taxes should be freshly done, and you’ve got a clean slate to keep your receipts organized for the next year. If not, get a bookkeeper in to blaze through it before you own more in tax penalties. Re-polish and inject new life into your marketing plan for the year. Plan your new schedule and be sure to block out time for activities that are really important. Thinking quality time with family, charity, networking and building your knowledge.

 

Want a more effective real estate team that helps your business produce better results? Try out these tips…

One Mission With Clear Goals

Your team members, contractors and vendors can operate effectively or help you achieve your real mission and target goals, unless they know what they are. A clear vision of what you want to achieve, the milestones you want to hit, and your values needs to be shared with everyone that works on your team.

Hire The Best

Top performing real estate companies and teams are those with the best team members. Hire the best you can possibly afford, not the cheapest you can get. The best will keep fueling your business growth. The cheapest are going to cost you in the long run, and likely even sooner than that.

Automation

If you like to micromanage then perhaps working for someone else and managing their team is the right fit for you. As an independent real estate investor or business owner, you need to operate like an owner, not a GM or project manager. You’ll get the most out of your team if you simply give them clear instructions, with clear goals, and just let them go to work to do their best work.

Ask For Their Input

The truth is that few of us are masters of everything in our businesses. As we take on new roles and levels of business we have less time to focus on the details and stay in touch on the front lines and trends in every small mechanical part of the business. That’s okay. You don’t need to be the best at crafting copy for your direct mail that converts or setting up effective Google Adwords campaigns. You just have to hire the best in each area. Then solicit them for their input on how to do things better. Don’t just wait for them to bring you ideas. They may be afraid to rock the boat. So, ask.

Build Relationships

The best team members don’t stay because of the size of the paycheck, the brand name, or how easy the gig is. At least not for long. They can leave if you are not paying enough or your brand loses its reputation. Though they will stay if you have a great personal relationship with them, and they share that with their colleagues. They’ll even stay during tough times, when the work gets more challenging, and when they get offers from the competition. So, keep building the relationships. Check in with them, show them you care about them as people, and get them together when you can.

 

Have wholesale real estate deals you are still trying to move? Why aren’t the buyers biting?

Finding deals is only half the equation in real estate. You’ve got to be able to resell in order to really turn those opportunities into cash. While wholesaling has grown in popularity, many are struggling to move properties for longer periods. That can mean losing contracts, being stuck with deadweight that ties up vital capital and killing your income. What can investors do about it?

Here are five common reasons people aren’t buying wholesale properties now, and how investors can change that…

Unknown Repair Factors

There is still a lot of inventory out there, and investors are crushed on time to evaluate all of their options. If your property is just a big question mark in terms of repair costs and issues, it can be easier just to skip onto the next deal. Most of the time they are thinking worst case scenario. So, don’t be afraid of scaring them off with the details. They just need to know so they can make an offer. Cosmetics are one thing, but how are is the plumbing, electrical and roof? How urgent are any code violations against the property?

It’s Too Expensive

Are you really offering wholesale pricing? It is important to look at this in terms of percentages and dollars. It should be competitive versus the ARV so that investors can line up appropriate loans. So know your lending market. It should also leave enough dollars to be attractive. A 30% discount on a $50,000 property is really nothing once your end buyer pays closing costs and even does basic cosmetic improvements like flooring.

It’s Too Cheap

Savvy real estate investors know that there are still houses trading out there for under $10,000. Others are going to be very suspicious of anything inder $100,000. That doesn’t mean you need to bump up the price, but justify it. Show them why the deal is so good. Maybe you just need to flip fast, that’s the going rate for local REOs and the neighborhood, or you have built in room for a new roof replacement.

No Trusted Relationship

Simply trying to blast out your wholesale house ads on Craigslist to strangers can soak up a lot of time. It means always trying to connect with new people, build a new relationship, and develop that. Ideally wholesalers will make these connections once, and then just be able to present great fitting inventory to their list who trusts them and who just buy. Focus more on nurturing the list than just flashing your inventory to strangers.

They Know How Much You Paid

One of the biggest hurdles today is that buyers can instantly see what properties sold for online. If you bought it for $40,000 less 60 days ago, they are probably going to think you should get half that (or less). Use double closings with transactional funding instead of buying and then going to market the deal, and avoid this challenge.

 

Ready to create more effective Craigslist ads for you wholesale real estate deals?

Many real estate wholesalers are using Craigslist to promote their properties. It can be a viable platform for advertising real estate. Yet, how you structure your ads can make a world of a difference in the results you get.

If you aren’t getting the sales you expected, or are bogged down with unqualified leads and time consuming calls that leads nowhere, try out these tips…

Your Contact Info

Make sure your contact information is obvious, and that prospective buyers can get through to you in their preferred medium. Many buyers on Craigslist prefer making email inquiries. They don’t want to be sold or spend time on the phone unless it is a good fit. So, enable email replies, have a phone number, and any other contact details you are using regularly.

Pictures

The more pictures you can include the better. No one really expects all wholesale deals to be beautiful. What they want is to know the real deal to figure out if it is a match. You’ve got to close that gap if you want qualified leads to contact you. So, ugly or not, include as many photos as you can.

Repair Info

Many qualified house buyers may skip your ads if you aren’t clear on what repairs are needed or not. Some will assume the worst, and just move on. You don’t have to include a full inspection report, but if the electrical and plumbing is okay, say it. If the roof is still viable mention that.

Cash or Finance

It’s okay to say you only want cash buyers, if you really must have a cash buyer. That will filter out a lot of inquiries that don’t match. However, if you are willing to finance the property, make sure you say that upfront in your headline, or you’ll be missing buyers too.

Justify the Price

Some real estate ads get skipped because they sound too cheap or too good to be true. Buyers assume there is a bigger problem lurking. If you need to move it fast and are discounting it for speed, or condition, mention that.

If You Repost Ads

Serious buyers are checking Craigslist every day, week in and month out. If your headline was “this won’t last a week!” and then you repost 2 weeks later you lose credibility. Let them know why. Did the last deal fall through? Have you dropped the price? Get all that in your headline.

Lead to Effective Landing Pages

If you are going to try and draw people to your real estate website with your ad, make sure it takes them to an effective landing page. One which is unique, clear about the process, has the ability capture leads but also enables them to graze and find out more about you and your other inventory.

It’s okay not to be so corporate. Sometimes a personal touch and connection can be better than a cheap brand or cold corporate giant. It depends on who you are dealing with and the types of buyers you are trying to attract. Know your customers.

Respond

Don’t waste time posting house ads on Craigslist if you are not going to respond to leads. You are just going to burn potential connections and buyers.

Then if they see your ads again, they will probably report you as spam or a scam. When buyers do reach out, get their direct email address and phone in case you take your ad down or it expires.

 

Some of our biggest tech companies are increasingly becoming real estate businesses.

As we’ve realized that McDonald’s is predominately a real estate business, many big technology companies and tech entrepreneurs are also moving more heavily into the property business.

Amazon is one of the most notable examples of these new super-sized real estate players. Jeff Bezos’ baby has completely changed Seattle in terms of both property prices and the look of the landscape. It’s search for a new second Amazon headquarters has whipped up a frenzy in the media and has spurred competition by many cities to compete to be the location. Others, like Atlanta have shied away from it, knowing that it will also deplete affordability. Still, all across the country Amazon has been testing retail stores, taking over grocery stores, and setting up new distribution centers. Real estate is a huge part of its business model and company value.

Google has been a little quieter with its real estate moves, but has quickly become one of the biggest real estate investors in America. Google now holds a portfolio worth an estimated $14B. That includes recently buying a single property in New York for around $2.4B. One of the most expensive properties ever sold, with a new record price per square foot of $2,000. The company could own and control a lot more than most realize between all of its business lines and subsidiaries too.

Elon Musk and his handful of brands are deeply real estate related too. He is big into solar and has launched the Hyperloop in India. Then there is Tesla which has a home battery panel, and home car charging stations, which could eventually become a part of Tesla branded homes. His Space X venture could be the first to build residences on Mars.

Airbnb and WeWork recently partnered up to offer workspace and housing for the new generation of remote workers that has taken over. Uber’s former CEO, Travis recently made his own move into real estate, buying a controlling stake in a commercial real estate company that repurposes property for more modern companies.

This all only confirms how important real estate is, especially if you want to build a strong and lasting business, or even just boost your own personal income and retirement portfolio. You can mimic some of these moves or find your niche and help and serve the growing number of corporations, tech entrepreneurs and celebrity house flippers with inventory as a wholesaler. You can wholesale houses, commercial, residential, and mixed use property.

 

How can real estate wholesalers stop end buyers and sellers from cutting them out of the deal?

One big issue in the world of real estate wholesaling today is end buyers and sellers working together to cut investors out of the deal, and go behind their backs. They’ll connect, and make a separate deal on the sale, without having to give the wholesaler their profit or assignment fee. According to some real estate brokers this has also become more common in real estate in general over the past few years. It’s sad, but true. Going through all the work and investment to secure a deal, and then to be robbed and conned out of your compensation for all of that doesn’t just hurt. It is very expensive and can bankrupt you if it happens too often. What can you do about it?

Peer Pressure

Positive peer pressure and leaving appropriate online reviews can help. Don’t do business with those who have cut other investors out of their deals. There is no reason they won’t do the same to you. Leave appropriate reviews about the situation online to warn other investors. This may be a longer term play, but it will only get worse if good investors don’t make the effort to protect the industry.

Contracts

Make sure your contracts are clear and in writing. Consider including clauses which will deter these situations. Perhaps expanding the length of time your assignment fee or profit applies, and even if the deal falls apart. This may be hard to enforce legally, and is something you must consult a real estate attorney on every time. Yet, it may be a good deterrent.

Double Close

While this issue can come up in any scenario it is probably most common when wholesalers are trying to assign their contracts, and when buyer and seller find out about each other and the difference in prices. This can be avoided by using two separate closings. You purchase the wholsale property directly from the seller, and then have a second back to back closing with your end buyer. Normally this can be within 72 hours. Using transactional funding you don’t need to have your own cash or a conventional loan to do it.

 

Who can you be flipping your wholesale homes to now?

If you want to wholesale more properties, wholesale faster, and make more profit, it helps to know who the most active buyers are in the market. There is more than one type of buyer for wholesale houses. Bulk up your list with them.

Rehabbers

Rehabbers and fix and flip investors are still one of the top buyers of wholesale homes. They need this inventory to fuel their businesses and incomes. Having a consistent source of wholesale deals allows them to stay focused on what they do best (fixing). This is becoming even more important as house flippers look for new areas to work in, with more opportunities.

Rental Property Investors

Rental property investors also need to keep their pipelines full of new acquisitions. They are needing to dig deeper and deeper to find house deals where numbers work. Some may want to make renovations and improvements, others won’t.

Other Wholesalers

While it’s important not to get tied up in long chains, other wholesalers with bigger buyer lists, and who can handle more volume may be some of your best contacts. These may be other pure wholesalers, investors looking to owner finance and create new mortgage loan notes from these properties, and even funds.

Retail Home Buyers

Regular home buyers are increasingly looking for wholesale house deals too. Too many other properties are being overpriced, and inexperienced and unrealistic agents and sellers are overpricing and have little in the way of negotiation skills. Today’s buyers want to feel as if they are getting a good deal. Some may take more work than other wholesalers, but they may pay more too.

Non-Profits

Nonprofits and not for profits are also looking for affordable housing supply to supply their users with, or to house workers and those they help. They may even buy your deal in bulk.

Home Builders

Small builders are often finding it more profitable to acquire existing properties and fully renovating them instead of building from the ground up. It can be greener too. Even larger builders often need to piece together larger parcels to put new communities and projects on. It’s much easier for them to work with wholesalers than regular homeowners.

 

Transactional funding has become an essential and invaluable tool for real estate investors. Multi-pronged benefits make it a vital tool for both experienced high volume investors, and crucial for those looking to get started in real estate investing.

Here are just some of the reasons it has become so important..

Liquidity

It doesn’t matter if you start investing in real estate with millions or are making seven figures a year. That cash can become tied up quickly. Without liquidity investors get stuck, and everything grinds to a halt. That cannot just be financially perilous, but means missing out on the best and most profitable opportunities. Transactional funding breaks that cycle, even as the wider mortgage market looks to become tighter, by offering virtually limitless capital.

Fast Funding

Sellers and Realtors don’t want to wait around anymore. They don’t want drawn out closings, and will give preference to offers that promise a quicker closing. Investors don’t want to be playing the waiting game for months either. The faster you can close and flip it, and get paid, the higher your annual returns and income. Transactional funding can be closed in just days.

Access to Credit

Transactional funding offers access to credit for those without perfect credit or all the paperwork that conventional lenders are demanding today. You don’t have to worry about the IRS speedily sending copies of tax returns, how backed up real estate appraisers are, or if you have an error on your credit report that just won’t go away. This provides a desperately needed service for new investors looking to change the dynamics of their finances.

Ability to Act as a Cash Buyer

The best transaction funding enables investors to act just like cash buyers. The money is there, and available to close in just days, without worrying about all the micro-underwriting of most banks. For sellers and Realtors, that makes wholesalers using transactional funding as good as cash buyers.

Protecting Your Deals with Legal Double Closings

Unfortunately, the market continues to be rife with unscrupulous buyers, sellers, and agents who try to go behind the backs of investors. It doesn’t matter how good of a deal you seem to give some people, they still try to manipulate the system, and think they can get away with it. Instead of relying on assignments and assigning contracts, transactional funding provides the ability to double close legally and quickly, and protect all the investment made in marketing and securing buyers and sellers.

Why do you use transactional funding?