The 5 Biggest Mistakes Wholesalers are Actually Being Taught to Make
This meeting isn’t only for Wholesalers: Rehabbers and Landlords need to understand this too!
Presented by Nick Modarelli
Here’s the thing: wholesaling can be hard. Simple, yes.... but not always easy—and there’s a massive difference between those two adjectives that your favorite Wholesaling Guru probably forgot to tell you. But that’s not all. There’s also a pretty good chance that he or she is teaching you to do stuff in your wholesaling business that is making things even harder for you than they already are... unnecessarily.
What kinds of things, you ask? Here are arguably the worst 5, in no particular order:
#1. Things that don’t make you look very serious, like offering $0 (or only $10) earnest money in your contracts. This doesn’t make sellers feel very secure about your ability to actually close, because it looks pretty obvious that you’re already trying to limit your losses before you even get started. There’s a way to limit your losses that doesn’t read like one, but if you don’t know what it is, you can’t use it.
#2. Things that don’t make you look very credible, like making all cash offers and then asking for 30 to 45 days to close. WTH?? This makes no sense to most sellers, because they know that people with very little money can close in 30 to 45 days with an FHA loan. So if you already have the cash to buy, why in the world do you need that long too? There’s a way to get 30 to 45 days to close that doesn’t look like 30 to 45 days to close, and you need to know what that is and how to say it right if you want to be taken seriously.
#3. Things that raise unnecessary red flags of concern for the seller, like putting “and/or assigns” in your contracts. Despite what your favorite guru probably told you, this is a completely unnecessary clause that opens a can of completely unnecessary worms and immediately puts you on the completely unnecessary defensive. Not good. There is a better way to say this that’s just as good and just as safe, assuming your contract is worded properly.
#4. Things that make you look insincere, like trying really hard to make friends with the seller before you present them with an offer... so that they’ll like you enough to let you steal their property. Really?? This is a disingenuous tactic that will nearly always come off as tacky and deceitful, and will literally end up backfiring 99% of the time. There is a way to build rapport and get you and the seller on the “same side" of the negotiating table, but that is definitely not it.
#5. Things that are actually illegal in all 50 states, like telling the seller you are simply putting their property under contract with the intent to go out and try to find an actual buyer for it. This constitutes acting as an agent without a license, and is technically illegal in every state—even though only a handful of states are proactively prosecuting investors for violating this. Unfortunately, Ohio happens to be one of the most aggressive. So if you’ve been doing this, you need to stop immediately. There's a way to do this without actually coming right out and saying that you’re doing it (does that make sense?)... unless you literally are licensed, of course.
Now, although these are probably the top 5 biggest mistakes wholesalers are routinely committing, they’re not the only ones. Not by a long shot. So if you’re interested in learning more about how to avoid and/or overcome these huge errors, and many others just like them, then you do not want to miss Nick Modarelli at the Northern Kentucky Focus Sub-group meeting on June 28th!!!
As usual, it will be held at Pee Wee’s Place, 2325 Anderson Road, Crescent Springs, Ky 41017
The meeting starts at 7:15, but we meet at 6:30 for food, drinks, and buy/sell/trade.
Directions: I-75 south to the Buttermilk exit, turn right and go to the third light which is Anderson Road and turn right. (BP, Walgreens, 5/3rd on corners) Pee Wee’s will be about two blocks on your right and backs up to Bass Pro Shops. Those of you coming from the south can figure out how to get there from these directions.
If you have any questions call Brandon Brewer @ 240-7339 or Tom Terlau @ 431-6412.
All REIAGC members attend free!
Menu: http://www.peewees-place.com/
Map: https://www.google.com/maps/@39.054685,-84.572177,15z
Nick has been a real estate entrepreneur for nearly 30 years, and over this time has learned what sellers really want to hear, and how they want to hear it. Nick has written several courses on real estate investing over the past two decades, and currently has a #1 Amazon best-selling real estate book entitled: Full Frontal Real Estate Investing: How to crush it in virtually any economy without ending up broke, burned, or butt-naked.
Editorial note: Tom thinks this is an outstanding book! )