Good Pre-Qualification Raises Close Rates, Dealing With Uncertainty, Track Your Numbers

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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:

• Good Pre-Qualification Raises Close Rates

• Dealing With Uncertainty

• Track Your Numbers

Good Pre-Qualification Raises Close Rates

Hope you had a great July 4th celebration. Let’s get back into it.

Mastery of anything in life will always come down to mastering the basics. 

Amateurs will always go out looking for the newest and shiniest strategy or hypnotizing magical words that will seduce a seller into selling their property. 

But here’s the reality, if you get good at pre-qualification, it increases your chances of closing. 

It’s just simple human psychology. Escalation of commitment. 

Imagine the conversation as a staircase that you’re trying to climb. If you go up step-by-step, you’ll eventually reach the top. If you try to skip steps, you might end up tripping and falling back down. 

Plus, if you get good at pre-qualifying, you can save yourself a lot of future heartaches as well.

So here are the 4 steps of qualifying that we recommend:

1. Condition

Always start with the condition. Ask about the kitchen and bathrooms. What kind of remodeling have they done?

If they’ve invested quite a bit of money into the kitchen and bathrooms, this should tell you that this seller probably wants full market value. 

If they say that the kitchen and bathroom are in original condition or need work – that’s a sign that they may consider a discount.

Ask specifically about other things as well – roof, mechanics, appliances, the electrical, and the plumbing. Is there anything that has been recently replaced? Anything that is showing signs of problems?

2. Timeline

When do they want the money?

The faster, the better. If they’re willing to wait, they’re not in much distress and willing to play the market. 

3. Motivation

Once you get the condition and timeline out of a seller, they will naturally give you their motivation. 

If they need a little nudge, DO NOT ask the amateur question, “On a scale of 1-10, how motivated are you to sell?”

Instead, ask, “What’s helping you make the decision to sell this property right now?”

4. Price

Price is the last step of pre-qualifying. When you get good at pre-qualifying, you build trust with the seller along the way while getting all the info you need to make an offer. 

So once you get all the previous information out of a seller, they will feel more comfortable sharing their price with you. 

You don’t need to be a master closer to do this and get deals. 

When it’s time for the price, just ask. How much would they take if you buy this property as is and pay for all the fees? 

Dealing With Uncertainty

An aspect of being an entrepreneur that everyone tends to forget about is uncertainty.

You don’t know where your business will be in a year. You don’t know if a deal is going to go through. You might not even know where your next lead will come from. 

It’s often talked about how people quit too early before they succeed. And I think it’s because they don’t know how to properly deal with uncertainty. 

Uncertainty became too big of a monster in their minds and they’d rather feel the rush of starting something else than powering through. 

So let me share how I personally deal with uncertainty.

Just don’t care.

I’m being a little facetious, but what I really mean is not to have such a strong attachment. 

One of the concepts of Buddhism is that attachment is the root of all suffering. 

There’s a lot of truth in that. Even Naval Ravikant says desires are a contract to make yourself unhappy until you get what you want. 

Being detached doesn’t really mean not caring. Of course, you care. If you don’t, then business ain’t for you.

It’s more like being okay with whatever happens. Accepting whatever outcome comes your way.

We like to think we have control over a lot of things in life, but the reality is that we only have a small amount of control over certain things. 

If a deal doesn’t end up happening, be okay with that. If a business partner decides to walk away, be okay with that. If you’re having a down month in revenue, be okay with that. 

As long as it doesn’t stop you, you have opportunities to make up for it in the future. 

Uncertainty can be a source of anxiety or excitement depending on your perspective. 

I know this is especially tough for newer wholesalers entering the game. That first deal is a grind and a half. 

But if you stay focused and do the right things, it’ll come. You just don’t know when or how. 

That comes with having a little faith that good things will happen to you. And a lot of faith in yourself that you can pull it off.

Track Your Numbers

Success Isn’t Just About Closing Deals - It’s About Understanding Your Business Inside and Out

Without a clear view of your key numbers, you're essentially flying blind.

Imagine navigating a maze without a map – some lucky turns might get you there, but it's a slow and frustrating journey.

Tracking your numbers gives you a clear guide, helping you see how well you’re doing, find areas to improve, and become more successful.

Where are your leads coming from?

Are bandit signs bringing in more calls than direct mail? Tracking your numbers answers these questions. It shows which marketing methods work best, helping you spend your money wisely and get the best return on your investment.

Not all leads are created equal.

Tracking how many leads turn into deals helps you find the best sellers. This allows you to fine-tune your marketing to attract sellers who are a perfect fit for your wholesaling business.

Knowledge is power, especially during negotiations.

When you track your renovation costs, repair estimates, and average assignment fees, you go into negotiations with solid data. This helps you justify your offers and close deals on your terms.

Ever feel like you're always chasing deals?

Tracking past data helps you predict future trends. You can see when leads are likely to come in and adjust your marketing to keep a steady flow of deals.

No business is perfect, and yours is no exception.

Tracking numbers helps you find where deals are falling through the cracks.

Maybe your follow-up system needs improvement, or your lead qualification process could be better. By spotting these issues, you can improve your overall deal flow.

Tracking numbers isn't just about spreadsheets and charts.

It's about getting useful insights that move your business forward.

It's about becoming a data-driven wholesaler who makes smart decisions and maximizes profits.

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