How To Pitch Novations, Win More Deals, Reflect & Rejuvenate

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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:

• How To Pitch Novations

• Multiple Options Win More Deals

• Reflect & Rejuvenate

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How To Pitch Novations

If you want to have novations as one of your exit strategies, it’s important you know how to position the offer. 

To do that, you can use the psychological principles of anchoring and contrast to your advantage. 

Let’s start with anchoring.

This is a strategy used by the Novation King Rich Wonder. Rich does hundreds of novation deals a year and this is his go-to method of positioning his offer.

First, he pitches a wholesaling offer.

Wait.. what? Isn’t that kinda counterintuitive?

Yes and no. The thing is, you don’t want to do novation deals for every property. 

The best properties for novation deals are livable houses in good condition or luxury houses.

Essentially what this means is that these sellers would never accept a typical cash offer. And if they do, that’s more money in the bank for you. 

But seeing is believing. They expect the benefits of a cash offer with a retail price.

So you have to show them what the cash offer process looks like and what an offer looks like.

You anchor the low cash offer so you can transition into pitching your novation offer. This makes the novation deal way more attractive. 

The brain automatically looks for contrast so the only context it has to compare is your low cash offer and the novation deal. 

So the next time you come across a deal that you think would be great for novations – pitch a typical wholesaling deal first. 

Make sure it sounds like you’re on their side and not trying to lowball them.

Multiple Options Win More Deals

Most wholesalers make one cash offer and hope for the best.

But this approach misses something important about human nature. People want choices when making big decisions. They want to compare different paths and pick what works best for them.

Think about it. When you buy a car, do you take the first deal they offer? 

No. You want to know all your choices first.

The multi-option strategy transforms how deals get done. Instead of giving sellers one choice, you can offer three different ways to work together.

The first way focuses on speed.

You offer quick cash with a 15-day close. The price runs lower, usually 65-70% of after-repair value minus repairs. This works great for sellers who need to move fast.

The second way builds long-term wealth through owner financing.

You offer a higher price, typically 80-85% of after-repair value minus repairs. The seller gets 10% down now, then monthly payments at market rate. A balloon payment comes due in 3-5 years. This appeals to sellers who want a steady income.

The third way blends both approaches.

You structure a lease-option deal with some cash upfront, usually 5-10% of value. The seller gets above-market monthly payments and you get the right to buy at a set price within 24-36 months. This flexibility helps sellers who want both immediate cash and future profit.

This approach changes everything about the conversation.

Sellers stop thinking about yes or no. They start thinking about which path fits their needs. They open up about their real situation.

The results speak for themselves.

Deals close 23% more often when sellers have multiple options. Profits increase by about a third. Negotiations move twice as fast because sellers feel understood and respected.

Keep things simple though.

Three options work perfectly. More choices just confuse people.

Present each option clearly, then pay attention to their response. Notice which numbers they keep coming back to. Listen to the questions they ask. This tells you what really matters to them.

Remember, the best deals happen when everyone gets what they need. And multiple options make this possible more often than not.

Reflect & Rejuvenate

Dwayne “The Rock” Johnson recently said in an Instagram video that he needs to do a better job of relaxing. 

We all work so hard that we sometimes forget to sit back and enjoy it. Of course, if we enjoy our work, it’s easy to get lost in it.

But it’s always beneficial for the mind, body, and soul to rest. 

A lot of people tend to check out before Christmas. But if you’re anything like us, you were probably still doing work here and there throughout the holidays.

But New Years falls mid-week this year. So this is your opportunity to take a long weekend to rejuvenate.

Hope you had a great holiday and we’re wishing you a happy new year!

Here’s to crushing 2025. 

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