4 Important Tips for Working with a Professional Wholesaler

February 9, 2015

Professional wholesalers are huge players in the real estate market. As a real estate investor, professional wholesalers can play big role in keeping your business stable. Being a professional wholesaler is a full time tactic. All they do is buy and sell properties.

This post will focus on the four best ways to work with professional wholesalers and how it can greatly benefit your business.

Get on their “A” list

If you aren’t on a professional wholesaler’s “A” list you could be missing out on tons of great deals. Wholesalers normally have a very short list of investors that they call before trying to reach out to new investors.

This means that if you aren’t at the top of the list you’re getting the leftovers. Deals that might not net you the amount of profit that you would like or would require you to keep your resources tied up for longer than you want.

The bottom line is if you want to fortify the structure of your business and have a place to get properties when you can’t get the number of leads you want, you need to be the first person your wholesalers call.

How can you get on a professional wholesaler’s “A” list? Build a relationship with them!

Build a relationship with a professional wholesaler

I always say that real estate is a relationship business. To be successful in this business you have to constantly create and grow new relationships. The relationships that you build with professional wholesalers are among some of the most important.

Understanding the need to get on professional wholesaler “A” lists is step one of building the relationship. Step two is making the effort to build that relationship.

If you can’t take out your phone, go down your contact list and call a hand full of wholesalers then you have a lot of work to do. Whether it is Craigslist, a Google search, or a bandit sign you saw on the side of the road, start calling wholesalers.

Once you put together a list of wholesalers you need to keep in touch with them. Call them once a week and see what kind of properties they are holding. You might be surprised! A professional wholesaler normally has a stock of properties that would make great investment opportunities. Even if you’re not buying properties, stay in touch with them.

Take your wholesalers to lunch every once in a while.  A personal sit down like lunch is a great way to learn more about a person and the type of business they run. More importantly, it gives you the opportunity to build a stronger relationship. It’s one thing to regularly deal with somebody over the phone. Putting a face and a personality with a name will only benefit your working relationship.

• Build a list of professional wholesalers
• Call them regularly to see what all properties they are holding
• Take your wholesalers out to lunch every now and then

Be patient

This is an extremely big part of building a relationship with a professional wholesaler. You can’t expect to go from not knowing somebody to being the first person on their investor call list.

Allow your relationship time to develop. Keep in touch with your wholesalers but don’t hound them. Just make sure to take the time to show your continued interest in building a relationship with them.

A professional wholesaler who is good at their job knows the real flippers and what sets them apart from the “tire kickers”. Typically the investors at the top of their list are the ones who stayed in touch and that they’ve known the longest.

• Be patient
• Allow time you’re your relationship to develop
• Let them know you are serious

Expect rejection

Expect rejection, but don’t let it defeat you. Building relationships take time. More often than not, when you first start talking to wholesalers they won’t have the best deals waiting for you. A lot of times professional wholesalers will have the best deals in a specific area.

Professional wholesalers deal with a lot of tire kicker investors, so it may take some time before you start to get good deals from them. Like anything else in life worth having, the best things take time and persistence.

Following up is a very important part of this business whether you are following up with work contractors have done, an offer on a lead, or for properties from wholesalers. If you don’t follow up in this business it will be reflected in your business and in the work that you do. Following up with wholesalers on their properties and deals is no exception. Even if you get rejected follow up. It shows just how serious you are.

• Expect rejection but don’t let it defeat you
• Be patient
• Remember to follow up, even if you are rejected the first time

Use these points as a guideline for building a relationship with a professional wholesaler. Understand the absolute NEED to get on their “A” list, and then take the steps to make it happen.

Keep in touch with them often and be patient. Real estate is a relationship business, and relationships don’t happen overnight. Give your relationship time to develop.

Last, expect rejection but don’t accept it. Many professional wholesalers won’t just start sending you their best deals. Don’t get defeated if the wholesalers you’re contacting don’t have immediate deals for you. After you follow up and give them some time they will see how serious you are.

How would you like this blog read to you?

You can click below to listen to the blog on the go!