Why The Real Estate Industry Needs More Wholesalers
Does the real estate industry really need more property wholesalers?
Yes! There are a variety of factors at work that make this not only an excellent time to get into wholesaling real estate, but that is driving a need for more great wholesalers too. So why wholesale now? Why do others need these key real estate investors so much? How can aspiring wholesalers get in and win?
The Demand for Wholesale Real Estate
According to Google Trends, searches for real estate wholesalers reached their highest peak since August 2008 as recently as last month. There was a bit of a tough patch when the market was flooded with inventory, and while activity was slower. Now, however, it appears that there is a huge hunger for wholesalers to work with. For investors, that means the demand for product is already there. They don’t have to build or invent something and just hope that people like it, or that they can educate them on the benefits. The market is ripe for selling wholesale properties. The more that you can serve, the more successful you will be.
The Need to Invest in Out of Area Markets
On a global, national and regional level, investors feel that they are being forced to invest out of their own areas. New buy and hold and income investors are frequently reporting that they just can’t afford to invest in property in their local areas: prices are too high in some areas. If they don’t have the down payment or financial reserves, they might not find a deal in their city of residence. Similar issues are plaguing the thousands of real estate investors that have gotten into the business since 2008. Many aren’t finding the spreads they used to through their usual channels and in the neighborhoods near them. International investors are flocking to the U.S.A., and with billions of dollars more than last year. All of these investors need access to affordable deals. Yet, out of area investing brings challenges of its own. It brings an increased need for effectiveness in investing, and completing due diligence. Wholesalers can help bridge this gap.
Better Opportunities for Buyers
There are still billions of dollars in defaulting mortgage loans, and other types of distressed properties out there, but ‘foreclosure’ deals aren’t the deals they once were, and there often appears to be a lot less inventory available to the public than there used to be. Buy and hold investors, rehabbers, and regular homebuyers want value, but they aren’t finding it as often as they would like. They need wholesalers to unlock the market and these real estate opportunities so that they can buy.
There are too many Poor Wholesalers Out There
The vast, overwhelming majority of wholesalers all got into the business around 2008. There is nothing wrong with being new. But many are still struggling to self-educate and learn the business. Others are just doing poor business. This leaves a lot of room and financial gain for returning real estate experts. There are too many that don’t understand the dynamics of real estate transactions, legal wholesaling, and how to market effectively. Then there are many who just don’t care about practicing good and sustainable business. They have really given wholesalers a bad name. However, that doesn’t mean this can’t be turned around with a few good professionals.
There is a huge need for legitimate wholesalers; those that know their business, the challenges of end buyers, and that have invested in their real estate education.
How to Win as a Wholesaler in This Market
Don’t replicate the behaviors that other investors and industry professionals are complaining about online. Via the Ignite Your Sales Team Podcast, one of Tony Robbins top sales leaders says that all great sales people have a servant’s heart. Serve others better, and more frequently, and the money will come, the rewards will be returned to you.
So whether you are a new wholesaler or an investor returning to the game:
- Commit to doing good business
- Add value to others
- Provide deals that help others in their mission
- Invest in your real estate education
- Develop, build, and maintain a professional presence and brand
- Don’t be cheap or greedy in your online marketing
- Remove the roadblocks and potential objections in advance
- Know your market, properties, and buyers