Change Your Attitude, Change Your Sales, Go For The No, Risk Management Strategies For Beginner Wholesalers

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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:

• Change Your Attitude, Change Your Sales

• Go For The No

• Risk Management Strategies For Beginner Wholesalers

Change Your Attitude, Change Your Sales

If you believe that sales is a transference of energy, then your attitude becomes one of your biggest weapons.

But I know it can be hard to maintain a positive attitude facing rejection after rejection, dialing hundreds of numbers without any traction.

Whatever you do, DO NOT carry that low energy into your next session.

In a sales environment, your attitude affects 3 things – yourself, the market, and your business.

If you don’t have a lot of confidence in yourself, that’s inner work that needs to be done. Or you just need to surround yourself with confident people and have their confidence diffuse onto you. 

If you’re having trouble getting deals, you start to develop a sour attitude in the market. 

I mean, you could be in a bad market. But if you did your research prior, you could’ve avoided this situation.

You might have to take this time to re-evaluate your strategy and pivot a bit.

And if you start developing a bad attitude towards your business, definitely stop calling and reset.

Because most of the time, we’re not gonna be winning the deal because of a better price. We’re winning the deal because of the other solutions we can give to the seller to remove their pain.

A psychologist I like to follow says to do consciousness checkpoints throughout the day.

Just pause and look inward to observe your attitude and emotions. Sometimes we don’t even know that we’re in a bad attitude because we’re so immersed in the grind.

So it’s a good thing to take a step back and check in with yourself.

Go For The No

Humans are hardwired to avoid rejection.

Unfortunately, our primitive instincts tend to pop up at the most crucial moment – when it’s time to make the offer. 

It’s very natural, especially for newer wholesalers, to not want to offer a price the seller will say no to. 

So here’s a little reframe that could help and possibly squeeze more profits for yourself. 

Because here’s the thing, if the seller accepts your first offer, you’ll never know what the seller’s true bottom dollar price is. 

So if you have an idea of what you think the seller will accept, try offering a lower deal. 

This isn’t some sleazy tactic to try to pull one over on the seller. You’re just trying to find the true number. 

Like Chris Voss says in Never Split The Difference, “No” is the start of the negotiation, not the end. 

Having a seller say no early makes a more collaborative conversational environment. Because people love to say no, they hold onto it like a trump card. 

And we all know that every no is one step closer to a yes, right?

Of course, there will be sellers who won’t come down on their price. But you also don’t need that deal.

If you know the law of averages, you know you’re gonna get a lot of definitive no’s. So just keep it moving.

The only way you stop getting deals is if you stop making offers.

Risk Management Strategies For Beginner Wholesalers

holesaling, just like any kind of investing, comes with its own unique risks and challenges. Legal and contractual issues come up, deals fall apart and unforeseen circumstances appear at the last possible moment.

Simply put, risks and challenges are an inherent part of the business. And your ability to manage and minimize them is the difference between building a successful business or just fizzling out of the industry.

Skipping Legalities Can Cost You

The most common mistake for both beginner and seasoned investors is a weak foundation. Because wholesaling is easy to get into and startup costs are relatively minimal, most people don’t think about longevity.

At the end of the day, why bother setting up a corporation or an LLC or even worry about the legal aspect of the business if you don’t even know if you want to do this for the long run?

However, this could be a major mistake. A mistake that could not only cripple your business but also significantly set you back financially. 

When you conduct business under your own name you are the one liable. Whether it be missing a deadline, the buyer backing out or the deal falling apart altogether, the last thing you want is a disgruntled seller coming after you for damages.

The Power of Due Diligence and Contingency Plans

Deals have the potential to fall apart at any moment for a number of reasons. From buyers backing out, to unforeseen circumstances coming up, it’s always a good idea to do your due diligence and have contingency plans in place. 

The last thing you want is to spend dozens of hours prospecting, negotiating, and working on a deal that’s going to go nowhere.

If there are going to be potential issues, you want to make sure you are aware of them sooner rather than later so you can plan accordingly.

Financial Discipline in a Fluctuating Market

Just because you make more money doesn’t mean that you should spend more. 

In this business, there is no guaranteed income. There’s no paycheck to fall back on and no guarantee that you will even close a deal.

It’s a “you eat what you kill” business and to eat, you have to close deals. 

We all know this when we start but tend to forget about it once the money starts flowing in.

We get comfortable, start buying nice things and spend more and more money not even thinking about the fact that it can’t always be this good.

However, the market is cyclical and it’s important to keep in mind that what goes up must come down.

If you stay in this business for the long run, you need to put contingencies for when that time comes. Make a conscious decision to live below your means, build a financial buffer, and diversify your lead generation. 

By doing so you’ll not only weather the inevitable storm but also be perfectly positioned to snag those fire-sale properties when the market dips.

Just think about real estate values during COVID. It was a difficult time, but it was also one of the best times to buy. 

Had you bought a property at virtually any price point at that time, you would be in the green on it today.

The Bigger Picture

Wholesaling is not just about closing deals; it’s about building a resilient and adaptable business that can overcome challenges and thrive in any market conditions. 

Minimize risk by building a strong foundation, understanding potential pitfalls, developing sound financial management skills, and fostering a robust network. 

Don’t just focus on the next deal, focus on building a business that can weather any storm.

Today’s Sales Objection

Last week’s sales objection:

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

Best answer: The way our company works is to do this as fast and as easy as possible. We agree to the price of the property and we trust your decision and trust what you say is true about the condition of the house. Once we agree on a price, then we’ll send someone over to look at the house. We’re not here to inspect anything or low-ball you.

This week’s sales objection:

“I want to find a place to move into first before I sell.”

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