myEmpirePROWholesale real estate is not a new business model but I would say it is newly identified by a lot more people. Clearly, you must be excited so here you go…
7 Steps to Success in Wholesale Real Estate
(1) Set an Income Goal
(2) Identify Your “Why”
(3) Identify the problem you Want to Solve.
(4) Identify the Ideal Client
(5) Identify the Hangout Spot Online
(6) Identify the Info-Bate
(7) Setup a List Building Campaign
Check This Out Too – How to Wholesale Real Estate Online
Before we break each one of these steps down into actionable steps that you act on today, let’s clarify a few things.
First of all, understand that there are a few wholesale real estate companies in your local neighborhood already.
They don’t label themselves as wholesalers.
They are your traditional real estate agents and investors.
Most of them are not on Facebook groups and YouTube commenting. They are busy looking for the next deal so they can feed their family.
If you can make these people’s life easier, you will make a lot of money; more than the salary from the average 9-5 jobs out there.
While there are tons of websites and books that cover the fundamentals of the wholesale real estate business model; we will be focusing on what it looks like in an ever growing digital age.
So pay attention.
If what you are looking for is wholesale contracts, I’ve got a few copy for you when you download my book, smart real estate wholesaling.
But that’s not where to focus your energy frankly. That’s actually a distraction from the most profitable activity which I will outline below for you right after watching this video on 7 marketing ideas.
(1) Set an Income Goal
I can’t deny it; the testimonials makes the business of wholesale real estate so attractive that we tend to forget it’s a business.
Most people start the idea of a business with a a business plan.
But some home wholesale real estate has been an exception where most people approach it with just wishful thinking.
It’s very important to set an income goal not just as a newbie but also as you continue in the business.
If you don’t set a goal, there is nothing to track progress against.
That also means you can’t track the quality of your efforts, inputs and activities.
This in fact a very direct reason why many people get frustrated out of the wholesale real estate business prematurely.
There is no sense of purpose where there is no goals to pursue.
In addition to that, don’t set an income goal lower than $10,000 per month in net income.
If you do that, you will set yourself up for failure because it won’t be worth any amount of effort once you start experiencing the inevitable obstacles.
(2) Identify Your “Why”
Wholesale real estate as a profession is not a job; it is entrepreneurship.
Entrepreneurship is simple but not easy; you will naturally encounter some “not so pleasant” obstacles on the journey.
So again if your sense of purpose is not adequate enough, you will quit in just a matter of time.
So my default question to a newbie is “WHY”?
If he/she can’t answer that question under one second, there is a good chance preparation will be just as lacking.
When I say preparation, it’s 95% mental and emotional with less than 5% about physical abilities.
Wholesale real estate will test your faith before success. If your why is not wild enough to make you cry, you won’t last in it.
If you are passionate about your why, that passion will sustain and drive you to the finish line.
You may not even be able to pinpoint exactly how you were able to make it to the success line.
(3) Identify the problem you Want to Solve.
One of the top ways to fail before getting started in business is to miss this simple but yet often skipped part.
Market research is a key ingredient when launching a business and wholesale real estate is no different.
Wholesale real estate is the art and science of finding deeply discounted properties using mass marketing, locking under contract and selling the rights contract for a fee.
Yes we are looking for discounted properties but there is a “but”.
Properties are things and and they don’t own themselves; people own the properties.
But why would a person in their right mind want to sell you their house at 65% of its value or lower?
There is only one way; VALUE.
Value means the owner of the property has perceived the sales process as solving a problem, answering a question or replacing a pain with pleasure.
I want you to start thinking about your wholesale real estate business as a way to solve problem.
That’s also means you need to identify the problems up front so that you can take this next step.
Examples of such problems are but not limited to:
- Preforeclosures
- Tax delinquencies
- Divorce
- Too much repairs
- Unwanted inheritances
- Tired landlords
- Upside down mortgages
and etc…
Another problem that you solve as wholesale real estate professional is filling pipeline of projects for real estate investors.
When investors finish projects without new projects ready to acquire, it creates gaps and laps in their income.
You can be the “go to” person for their new project by maintaining inventory of off-market deals; another channel to solve problems and make money.
(4) Identify the Ideal Client for Your Wholesale Real Estate Operation – WHO ARE THEY?
Now that you know the only way to a profitable career in wholesale real estate; problem solving, who would be your ideal client.
Any business model where you are operating as some type of middle man, it also means have 2 ideal clients.
Simply put; you have a seller and a buyer on your 2 sides to complete a transaction.
But you are not just dealing with every seller; remember they have to be willing to sell at a deep discount.
Therefore your 1st target ideal client is a motivated seller. Most realtors don’t know what that mean.
I get it; a desire to sell a piece of real estate is always motivated by something.
However one being motivated to sell a property does not always equate to a motivated seller.
Let me repeat…
The existence of a motivation to sell does not always mean the seller is motivated.
Being a motivated seller simply means you are motivated by a strong desire to “get rid” (not to sell) of the property.
A desire to “get rid of” and “sell” are 2 different thing.
To desire to get rid of it needs to be motivated by other life events outside of money in order to qualify as a motivated that will find value in selling at a deep discount.
In other words, you would be positioned as a problem solver as explained in the previous step.
For the most part, a seller may be motivated by money.
In the books of “wholesale real estate”, that’s usually not a motivated seller.
That doesn’t necessarily mean you can’t do a deal, but it’s wise to focus on giving them money in exchange for time.
A referral to a licensed sales agent may be necessary when the motivation is making money.
You would simply approach solving their problem from their motivation stand point.
The 2nd ideal client for you is an investor looking to buy the rights to purchase the properties already locked under contract.
They are usually investors looking to buy a property they can add value to and sell for profits.
(5) Identify the Hangout Spot Online
Once you’ve registered in your knowledge base that you will be serving motivated sellers and real estate investors… It’s time to find out where to find them.
You should identify where they hang out so that you capture the attention of your ideal client(s).
Back in the days, the only options you had was massive outreach via traditional media such newspaper, post office or direct mail, knocking on doors, cold calling and/or driving for dollars.
Times have changed and still changing very fast.
Your prospects are spending so much time online via their mobile phone.
Don’t judge me but I spend an average of 6 hours and 50 minutes per day on my cell phone.
Although that’s not a fair comparison as a big part of my business is conducted on my phone.
In fact, this piece of content was created on my phone.
But according to emarketer….
“The average US adult will spend 2 hours, 55 minutes on a smartphone in 2019, a 9-minute increase from 2018.
Among smartphone users in the US, time spent with their device is 3 hours, 10 minutes per day.”
You would agree that’s a fair amount of attention that you can capture.
Hang with me; I’m going somewhere here.
My top 8 phone applications (not in any particular order) are:
- Deputy – For managing human resources
- Books – Learning & knowledge
- YouTube – Entertainment and Knowledge
- Apple Music – Entertainment
- WhatsApp – Communication Management
- iPhotos – Content Management
- Word Count – Training & Content creation
- Podcast – Learning & knowledge
With this information I just shared with you, how would you advertise to me if I was your ideal client?
Those are 8 application you can learn how to create presence on and potentially attract my attention.
For me, it’s probably smarter for me to focus on attracting and ideal client with similarity to my information consumption and MEDIA habits.
It’s highly likely that my ideal clients are hanging out on YouTube.
- Do you spend more time on your phone or opening mails at home?
- Do you spend more time on your phone or waiting for a stranger driving around for dollars to solicit to buy your house cheaply?
May be these are not exactly fair questions…
Bottom line is that more of your prospects and increasingly hanging out on YouTube and other social media more than they hang out with their own family.
That’s an important thing to note before determining the next step to attract massive success in wholesale real estate.
(6) Identify Your Info-Bait | What is an info-bait?
Honestly, reading that back to myself sounds negative but nonetheless…
It’s important that you understand this concept and how it helps you create wholesale real estate profits.
What is a bait?
According to the dictionary, “A bait is the food used to entice fish or other animals as prey.”
Other definitions of that use the word ‘trap’ but it’s more like capturing data and leads.
There are 3 pillars required to build a business of any kind.
- Value
- Automated Media and
- People
The 1st 2 of the 3 pillars are basically useless without the 3rd pillar… people.
In other words, you have the best value to offer via the most robust media automation and technology.
Without traffic of people coming through the funnel pipeline, you might as well multiply 1 million (1,000,000) by 0… get it?
So it it very important to understand that this whole business is about serving people.
But in addition to that, you have to create a proactive process to attract people to your wholesale real estate funnel pipeline.
Sitting there and just waiting for it to happen is an absolute bad idea.
It’s your responsibility as an entrepreneur or lead generator to figure out how to get enough attention that will attract “people” into your funnel pipeline.
So ultimately, you should lead that process with value (a.k.a the bait.)
It’s called attraction marketing.
People only do business with people they know, like and trust; it’s called the K.L.T factor.
But more so, it’s more important for them to “feel” like they know, like and trust you.
It is more about the feeling than the actuality or reality of it.
So if you are stuck on the traditional version of connecting with your ideal clients before you can do business, your competition will leave you in the dust.
For that same reason, you have to engage lead capture methods and processes that gives you competitive advantage in a digital age.
The purpose of identifying tabs creating and info-bait is to capture leads into your funnel pipeline.
What’s a lead?
In order to understand what a lead is, you need understand the path of people as they ascend through your pipeline funnel.
A lead is created when a potential client contacts you for your service or when your bait attracts a potential client.
The contact is what makes it a lead; before it becomes a lead, all you’ve got is data.
A property address is a piece of data. So is the phone number of a person.
Once a contact is initiated on either side, that piece of data has now ascended to being a lead.
The best way to generate a lead is to have them initiate contact to you.
You can reverse engineer that by marketing an info-bait to your target market.
Info is short for information.
The presence product of value to offer the target market is information based because all it cost the expert is the time and the information.
If a physical product has to be created, the cost goes up significantly.
If you have not noticed yet, I practice what I preach.
Therefore if you are brand new here at myEmpirePRO, you can actually grab my book Smart Real Estate Wholesaling for free as a PDF at this link.
It’s a million dollar information but I am only able to give it to you for free because the information is free to produce.
While my time is not free, I only had to invest my time one time to create a valuable information.
It’s my info-bait.
So you too can create something similar for either of you ideal clients; motivated seller or real estate investor.
What information can you give that they will truly appreciate in exchange for entering their contact information on your landing web page.
You can also use affiliate partnership to give away other people creation as you capture leads, build your list and monetize the list on the front end of you funnel pipeline.
So if you are intimated about the idea of creating a book or free report with valuable information, there goes a solution.
You don’t even have to close a deal before you can start being in revenue.
Multiple streams of passive income already as you are building even more chances to close more deals; all from home if that’s what you want.
A lead is created every time someone downloads your info-bait.
(7) Setup a List Building Campaign
& PIPELINE to Fuel Your Real Estate Wholesale Engine.
At this stage, we have connect all of the last 6 pieces into a full blown million dollar wholesale real estate funnel pipeline.
How sweet would it be for you to generate leads through this baby by simply giving away information that’s people value.
Every time you do that, you are generating money, building your brand and creating more opportunities.
Most importantly, many people can leverage your system to put food on the table for their family.
Also, you can help other tradition wholesale real estate professional move deals.
What AGE Can You WHOLESALE REAL ESTATE?
There are some things, not restrictions per se, to be aware of.
When it’s time to cut a check from the title company, depending on what state you live in,
…there may be restrictions to cutting a $30,000 check for a 15 year old.
So because of that, you probably want to involve your parents and say,
…“Hey, this is what I’m involved in. I’m looking for deals. Come on, Dad. Would you like to purchase properties if I find a good deal?”
I mean the way our system is set up, anyone can literally pay a few dollars and learn this stuff.
So learn the skills and then let them know.
“Mom, I’m actively campaigning. I’m looking for properties right now. Dad, would you like to take a look?”
You should involve and carry them along because again, when it’s time to cut the check, the title company would want to know,
“Are you 18? You’re not 18? We need a parent.”
Why?
Because that money you’re about to make, somebody must pay taxes on it and it’s not gonna be the title company.
It’s not gonna be a minor under 18 either.
In most or all states of the United States, the age requirement to sign a contract is 18 years of age but you can facilitate the running of a wholesale real estate business.
Real more on what age to wholesale real estate here…
Wholesale Real Estate Frequently Asked Questions
How does wholesale work in real estate?
The idea of wholesale real estate is to find deeply discounted property using marketing skills, locking such properties under a purchase contract and assigning the equitable right to an able and willing end buyer.
Is wholesaling real estate legal?
Yes wholesale as a real estate investing strategy is absolutely legal
However, some states make require licensing once you close beyond one deal in any give year to regulate the business.
How much do real estate wholesalers make a year?
It depends but particularly on how much of marketing and how skillful the wholesaler is as a marketer in a digital age.
A skillful wholesaler should be making no less than double 6 figures income once up and running with momentum.
Keep in mind; it is entrepreneurship. There is probably not going to be any paycheck next Friday as of yet.
How do I find wholesale properties?
You can find wholesale properties by target marketing at potentially distressed property owners such as pre-foreclosures, tax delinquency, unwanted inheritances, tired landlord and etc.
Do you need a license to wholesale real estate?
It depends on the state you are operate in and the volume of wholesale real estate deals that you are doing.
Once you close your first deal, it is highly recommended to check with your local real estate laws.
But at least at that point, you know it will be worth investing time and resource in getting licensed or at least partnering with a licensed agent.
What is a wholesale real estate deal?
Wholesale real estate is the art and science of finding a deeply discounted property using mass media marketing, locking it under a purchase contract and optionally selling or assigning the equitable interest in the contract to an end buyer who will execute the contract for an assignment fee.
These deals from this strategy are referred to as wholesale real estate deal… Retail deal are found directly from real estate agents.
What is virtual wholesale real estate?
It’s a wholesaling operation that involves creating strategic partnership with other real estate wholesalers, agents and investors around the nation leveraging social media, a smart phone and a laptop to close deals anywhere from anwhere.
What is wholesale real estate?
It’s the art and science of finding a deeply discounted property using mass media marketing, locking it under a purchase contract and optionally selling or assigning the equitable interest in the contract to an end buyer who will execute the contract for an assignment fee.
What is wholesale real estate contract?
It is a binding document agreement between 2 parties for the exchange of a real estate property with address, legal description and consideration for purchase.
How to Wholesale Real Estate as a Business
STEP 1 – Set an Income Goal
I can’t deny it; the testimonials makes the business of wholesale real estate so attractive that we tend to forget it’s a business.
STEP 2 – Identify Your “Why”
Wholesale real estate as a profession is not a job; it is entrepreneurship.
STEP 3 – Identify the problem you Want to Solve.
One of the top ways to fail before getting started in business is to miss this simple but yet often skipped part.
STEP 4 – Identify the Ideal Client for Your Wholesale Real Estate Operation – WHO ARE THEY?
Now that you know the only way to a profitable career in wholesale real estate; problem solving, who would be your ideal client.
STEP 5 – Identify the Hangout Spot Online
Once you’ve registered in your knowledge base that you will be serving motivated sellers and real estate investors… It’s time to find out where to find them.
STEP 6 – Identify Your Info-Bait | What is an info-bait?
Honestly, reading that back to myself sounds negative but nonetheless…
It’s important that you understand this concept and how it helps you create wholesale real estate profits.
STEP 7 -Set Up Your List Building campaign at www.11DayChallenge.com
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