How Successful Real Estate Wholesalers See Vendors Differently
by blogger1
on Thursday, 15 May 2014
BestTransactionFunding
blogger1
Guest has not set their biography yet
User is currently offline
The most successful real estate wholesalers see vendors, service providers and business partners distinctly differently than others. In fact, it is one factor which can often create dramatic in results.
This is a characteristic which is also seen among the wealthiest and most sophisticated buyers and investors, as well as leading CEOs. Put simply, it is the value put on quality services and business relationships.
This is not just about recognizing the importance of larger, long term gains and success trumping unsustainable short term gains. When considering the potential liability of being too cheap and churning through low quality vendors and reliability become almost priceless.
One of the most common ways in which this is seen in the industry today is when it comes to sourcing help and wholesale properties. One of the most ironic ways this rears its head is when some refuse to cough up for valuable third party services. This applies to the MLS, outsourcing platforms, online platforms for sourcing help, and other brokers. The argument by some is why should they pay for a third party middle men. Perhaps they are forgetting that they themselves as wholesalers are technically third party middle men. All too often they are happy to use the services, they just don’t want to pay for them. The fact they are used at any level shows the value they have.
Cost is the second part of this. It is wise to look for good deals and cost effectiveness. Unfortunately, the short sighted often believe that means cheapest.
One of the greatest examples of this in the real estate investment arena is house prices. Some of the cheapest homes of the moment can be found at Detroit’s foreclosure auctions. Some of the homes might sell for $1,000. After the fact they can cost many tens of thousands to repair or even tear down, and some will likely never see the rents or values other properties will. A most expensive property might actually end up delivering far higher returns and require less cash money out of pocket.
The same applies to wholesaling businesses hiring copywriters or designers. Cheap can often mean sabotaging future goals, losing advantages in speed to market, and more expense needed for constant do-overs.
When it comes to choosing real estate attorneys the savviest wholesalers, investors and business owners get that a low cost attorney or ‘pre-paid’ legal service can often ultimately cost more due to increased billing hours and substandard results. What they achieve in a week might be accomplished in 30 minutes by a real estate attorney with a higher hourly rate.
Could you imagine Warren Buffett and Berkshire Hathaway achieving such results and reputation over such a long period of time if they only hired the cheapest staff and acquired the most depressed businesses?
We are entering a new boom in the U.S. housing market. Using BestTransactionFunding wholesalers can look forward to turning substantial volumes of properties for years, for high profit margins. However, all the money in the world might not keep those which don’t prioritize wise counsel, solid business relationships and quality team members in the game.
This is a characteristic which is also seen among the wealthiest and most sophisticated buyers and investors, as well as leading CEOs. Put simply, it is the value put on quality services and business relationships.
This is not just about recognizing the importance of larger, long term gains and success trumping unsustainable short term gains. When considering the potential liability of being too cheap and churning through low quality vendors and reliability become almost priceless.
One of the most common ways in which this is seen in the industry today is when it comes to sourcing help and wholesale properties. One of the most ironic ways this rears its head is when some refuse to cough up for valuable third party services. This applies to the MLS, outsourcing platforms, online platforms for sourcing help, and other brokers. The argument by some is why should they pay for a third party middle men. Perhaps they are forgetting that they themselves as wholesalers are technically third party middle men. All too often they are happy to use the services, they just don’t want to pay for them. The fact they are used at any level shows the value they have.
Cost is the second part of this. It is wise to look for good deals and cost effectiveness. Unfortunately, the short sighted often believe that means cheapest.
One of the greatest examples of this in the real estate investment arena is house prices. Some of the cheapest homes of the moment can be found at Detroit’s foreclosure auctions. Some of the homes might sell for $1,000. After the fact they can cost many tens of thousands to repair or even tear down, and some will likely never see the rents or values other properties will. A most expensive property might actually end up delivering far higher returns and require less cash money out of pocket.
The same applies to wholesaling businesses hiring copywriters or designers. Cheap can often mean sabotaging future goals, losing advantages in speed to market, and more expense needed for constant do-overs.
When it comes to choosing real estate attorneys the savviest wholesalers, investors and business owners get that a low cost attorney or ‘pre-paid’ legal service can often ultimately cost more due to increased billing hours and substandard results. What they achieve in a week might be accomplished in 30 minutes by a real estate attorney with a higher hourly rate.
Could you imagine Warren Buffett and Berkshire Hathaway achieving such results and reputation over such a long period of time if they only hired the cheapest staff and acquired the most depressed businesses?
We are entering a new boom in the U.S. housing market. Using BestTransactionFunding wholesalers can look forward to turning substantial volumes of properties for years, for high profit margins. However, all the money in the world might not keep those which don’t prioritize wise counsel, solid business relationships and quality team members in the game.
