3 States To Avoid In Wholesaling, What The Greats Have In Common, What Institutional Money Is Doing Right Now

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Welcome To The Business Of Wholesaling Newsletter!

Every week, we’ll be sending you strategies, tactics, and tools used by successful wholesalers and we’ll cover any important market insights and news in the industry.

Here’s what we got for you today:

• 3 States To Avoid In Wholesaling

• What The Greats Have In Common

• What Institutional Money Is Doing Right Now

Looking To Hire An Acquisition Manager?

Are you doing at least 2-3 deals a month and looking to scale?

Solo operators start struggling at 3-5 deals a month consistently. But if you hired this key team member, it’ll get you over the hump and into scale mode.

So who is this person you need? An acquisition manager.

To do that, you need a team. And one of the key team members you’ll need is an acquisition manager.

What does an acquisition manager do?

This is someone who’s going to take lead generation off your plate and free up hours and hours of your time. 

Here’s a look at a typical acquisition manager’s daily responsibilities:

• Make 50+ calls a day

• Present 3-5+ offers a day

• Clean and organize CRM

• Follow up with all hot leads

• Close deals

We all know how time-consuming (and frustrating) hiring can be. So why not let someone else do 90% of the work for you?

Our friend Auctavius Bennett and his company will source, screen, and interview qualified acquisition managers for your company.

You do the final interview and qualification. And if you offer them a role, then Auctavius and his team will personally train your new acquisition manager before they start working for you. That way, you get an actual pro who’s ready to get started.

Recently, one of Auctavius’s clients brought on a brand new acquisition manager and the guy managed to close 5 deals in his first week!

For Business of Wholesaling subscribers, you can get a special deal of $500 OFF today when you get started with Auctavius and his team. Just click the link below to get started.

3 States To Avoid In Wholesaling

Wholesaling is legal in all 50 states. But there are a few states that just want to make it tougher for no reason. 

And if you’re living in these states, you’re probably already dealing with this.

But for everyone else, especially newer wholesalers who are looking to do virtual wholesaling, here are 2 states you should definitely avoid in the beginning and another one to keep an eye on.

Illinois

It’s unfortunate because Chicago is such a major city. But according to Illinois law, you only legally wholesale one property per year unless you get your real estate license.

Of course, there are loopholes to this. We won’t get into any of that. But you can look into double-closing and JV’ing on your own.

Oklahoma

You can tell by the name of the law how Oklahoma feels towards wholesalers. The Predatory Real Estate Wholesaler Act.

Predatory… interesting.

Anyway, you can’t do a deal in Oklahoma at all unless you have a real estate license. 

Again, there are loopholes, but don’t get caught up in those things. There are bigger and better markets to focus on.

Now onto the newest state on this list that’s causing a stir in the industry…

Virginia

This is fairly disappointing to hear as Virginia is typically a good market for virtual wholesaling.

But as of 2/27/2024, the House has passed HB917 in the state of Virginia. 

It’s causing a lot of real estate content creators to scream “Wholesaling is banned in Virginia!”

Not true. The law is not in effect yet. 

So what does HB917 state?

It adds to their state definition of what a “real estate broker” is.

Basically, in layman’s terms, you can’t do more than one wholesale deal in Virginia without a real estate license. 

The law is written pretty loosely but we’re not lawyers here. I’m sure there are loopholes as always.

Again, the law is not officially in effect. If you remember elementary school social studies, if a bill has been passed in the House, it then goes to the Senate. 

If you’re doing deals there already, keep doing what you’re doing. No need to be alarmed as of right now.

And DO NOT listen to any of the fear-mongering gurus making clickbait content on how “Wholesaling is banned in Virginia!”. 

Just keep your eye on any updates regarding this bill.

What The Greats Have In Common

Tony Robbins says the best of the best have one thing in common…

Certainty.

To a lot of people, it comes off as delusion. Arrogance. Cockiness. 

But if we look at some of the greatest athletes, they all share the same level of certainty.

Conor McGregor said he'd be a double champion in the UFC before he was in the UFC.

Stephen Curry has the audacity to turn around after shooting some 3-pointers because he knows it’s going to go in.

Fun fact, the common thread with the two athletes above is that they have both been coached by Tony… so maybe there’s something there.

But I think when it comes to selling anything - products, services, widgets - it’s a transference of certainty from you to the prospect. 

That’s why they say sales is a “transfer of energy”. I just think it specifically comes down to certainty. 

If you think about all the sales calls you’ve had where you were a little nervous and unsure you could get it done…

How many of them closed?

Maybe you had a few lucky ones. But compared to calls where you felt on top of the world, confident that you’ll fulfill your promise, I bet the results don’t even compare. 

There are usually 3 types of uncertainty a prospect has in every sales conversation:

1. Uncertainty with you

2. Uncertainty with the solution

3. Uncertainty with themselves

For sellers, the first two levels of uncertainty are pretty self-explanatory. But the uncertainty with themselves is where they get stuck.

That’s why they usually want an unreasonable price for their home. They don’t know how to price it and they certainly don’t wanna get ripped off. 

So during your sales conversation, if you can give the seller a sense of certainty in all 3 levels, the probability of you getting a contract is pretty dang high.

Show them they can trust you to get the price you promised.

Show them by working with you, it’ll help solve all their present pains with the home.

And show them that they’re making the right decision by going with you. 

Most importantly, have certainty in yourself that you can get the job done. That energy is what you’ll transfer.

What Institutional Money Is Doing Right Now

 The institutional real estate investing landscape is shifting.

Empty office buildings, declining foot traffic at malls, and a digital retail revolution are forcing investors to adapt or face irrelevance. 

But wait, before you paint a picture of despair, let's reframe.

This isn’t a story of doom and gloom; it’s a call to evolve and thrive in a changing market.

Who knows, this may be an opportunity for you to diversify your own portfolio. You know what they say, follow the money.

Rather than focusing on traditional core assets such as office buildings and top-tier regional malls, institutional investors are strategically redeploying capital into niche sectors.

Cold storage, self-storage, logistics hubs, data centers, and residential real estate are emerging as a safe haven for institutional investors.

But one sector stands out: residential real estate.

Take Charlotte, North Carolina, for example. In 2021 and 2022, institutional investors snapped up nearly half of the homes sold in one neighborhood. 

And even as the housing prices continued to rise and interest rates remained high, investors still managed to purchase 26% of the homes that were sold in the same neighborhood in 2023.

Several compelling factors are driving this shift.

Unlike commercial properties susceptible to economic fluctuations, single-family homes cater to a fundamental human need - shelter.

This translates to consistent demand.

Single-family homes also boast lower vacancy rates. According to a study by Apartments List, the national vacancy rate for single-family rentals in Q4 of 2023 was 4.4%, significantly lower than the 6.2% for multi-family units.

This translates to reliable income for investors.

Investing in single-family homes allows for portfolio diversification, mitigating risk by spreading investments across different asset classes and geographic locations.

This reduces exposure to volatility in any single market segment.

The historical trend of rising home values in the United States adds another layer of potential gain for investors. According to the Federal Reserve, the median sales price of existing single-family homes in the US increased by 10.3% year over year in December of 2023.

The message is clear.

Residential real estate offers stability, income, and potential for growth in a changing market.

Today’s Sales Objection

Last week’s sales objection:

"I’ve received a higher offer from someone else."

Best answer: That sounds like a great offer. Sounds like you should probably go with that offer. But do you mind if I ask a few details about it?

The seller may something along the lines of: Well, the offer is [X] amount more than what you’ve proposed.

Now you have to try to steer the focus from money to removing present pains.

I see, that's a significant amount, and I can see why it would be appealing. Keep in mind [mention any specifics like paying in cash, covering closing costs, or handling repairs], which means less hassle and uncertainty for you. Would those things be important to you?

Build in credibility from what you’ve done vs. the competiion. And work your way from there.

This week’s sales objection:

“Why can’t you come by and see the house?”

Reply with your answers! The best answer will be featured in next week’s issue. 

Thanks for reading this week’s issue of the Business of Wholesaling. 

We’ll be back next week with more marketing & sales strategies, market insights, and other advice you can use to grow your wholesaling business. 

See you next week.

Team Business of Wholesaling