Wholesaling With A 9-5, Renegotiating A Lower Price, Renegotiating A Lower Price

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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:

• Wholesaling With A 9-5

• Renegotiating A Lower Price

• How to Build Wealth While You Sleep

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Wholesaling With A 9-5

A lot of us who enter this business are not these young bucks we see on social media.

Some of us have families and little ones to take care of. And that’s not free. There are bills that need to be paid and mouths to feed. 

So to just go all in into something new is probably not realistic and reckless. 

But with that being said, it’s totally possible to wholesale part-time with only a few hours a week.

You can do this by yourself and go through the motions after your normal 9-5. Or you can get help.

We suggest doing the latter if possible. There are wholesalers out there who are doing this exact same thing and can only manage to spend 5 hours a week doing this.

So if that’s all the time you have, you really have to maximize the productivity of it. And by getting help, we don’t mean hiring team members. I mean you could, but it’s much better for you to go through some of the processes to learn the ropes too.

What we’re alluding to is doing JVs or doing agent outreach. If you don’t have a lot of time, you need to leverage other people’s time. 

If you’re a good salesperson, you could close deals for another wholesaler who is better at finding leads or vice versa. 

If you want to go the agent outreach route, you can go on realtor.com or homes.com for example, scrape all the contact info you can from a specific market and start reaching out.

If you want to make your time even more efficient, send them all a text blast first just to see who is willing to respond, and then call those agents only. 

Eventually, when you’re able to build some cash flow, you can hire your own assistants and cold callers. Obviously, this doesn’t mean you should stop all your partnerships. 

But if the goal is to replace your current job’s income with your wholesaling income, you gotta source your own deals too. 

If you’re good with doing a deal here and there just to stack on top of your current income. Then this is probably the most efficient way to do it.

Renegotiating A Lower Price

Sometimes you find yourself in a hard situation that wasn’t your fault. Maybe there was some miscommunication along the way.

Let’s say you’re doing a JV with another wholesaler. They’ve locked up the contract and put down the earnest money deposit.

Now the baton is passed to you and you gotta do the rest. But there’s one problem.

What you thought you were buying the property for is completely different from what the seller expects to sell it for. 

Whatever the gap is, big or small, there needs to be some renegotiation. And 90% of the time, the seller isn’t going to be very happy. 

It is what it is. But if you’re not afraid to have hard conversations, more opportunities will open up to you.

Okay, so how do you navigate this scenario? How do we get the seller to accept a lower price even though they thought they signed a contract for a different price?

First things first, don’t get defensive. Don’t let emotions get in the way of the deal.

It’s a mistake, some miscommunication along the way. It’s not that big of a deal. There’s always a solution.

Next, call the seller and take all the blame. Drop the ego and be upfront. Maybe you overlooked something and can no longer pay the original price you agreed to.

Now the seller might say they’re going to keep the EMD. Just agree to it, say you understand. We’re not saying to give away the EMD, just don’t argue.

After that, list all the reasons why you need to lower the price. Depending on the gap, you probably won’t get the whole reduction. But you can open the doors to a lower price and go from there.

Next, offer alternative options to the seller for the original agreed upon price. Offer to help them with your connections and resources.

One of two things will happen here, they'll either tell you to F off or they’ll be open to hearing what you have in mind.

To end it, circle back to accepting the blame again. Try to reschedule another conversation with the seller to continue this renegotiation process.

You’re rebuilding rapport through this and you’re softening up the seller for a lower price. You may not get the deal to where you need to be initially, but you will be able to lower the price. 

How to Build Wealth While You Sleep

Wholesaling is a fast-paced and exhilarating way to make money.

The deals, the cash, the excitement—it can make you feel like you’re on top of the world.

But have you considered what happens when the deals slow down or when you want to take a break?

That’s where rental properties come in. They offer a way to earn consistent income without the need for constant hustle.

But to succeed in rental investing, you need to shift your mindset from making fast cash to building lasting wealth.

It’s tempting to think that because you’ve mastered wholesaling, transitioning to rentals will be a breeze.

And yes, your skills in finding deals, negotiating, and evaluating properties give you an edge, but buy-and-hold investing requires a different playbook.

First, let’s talk about financing.

Wholesaling often doesn’t involve much capital, but building a rental portfolio will.

Financing is the lifeblood of buy-and-hold investing. Unless you have a mountain of cash, you’ll need to secure loans.

Understanding how mortgages work and the different financing options is key to maximizing your returns and managing risk.

Cash flow management is another cornerstone.

You need to ensure that the rent you collect each month is more than enough to cover expenses like mortgage payments, taxes, and maintenance.

At the end of the day if your property isn’t cash flow positive, it’s not an investment. 

It’s a liability.

And let’s not forget the day-to-day realities of managing a property.

In wholesaling, once the deal is closed, you’re done. But with rental properties, the work doesn’t end when the tenant moves in. Sooner or later, things will break, and you’ll have to either fix them yourself or pay someone to do it.

Here’s my advice.

Even if you’re killing it in wholesaling, don’t rush into rental investing with big expectations.

Start small. Buy one or two rental properties to get a feel for the process.

This approach not only eases you into landlord duties but also lets you figure out if this path is right for you.

For some, being a landlord is a perfect fit. For others, it might reaffirm their passion for wholesaling or flipping.

But if you find that the monthly cash flow is working for you, and you enjoy the process, the next question is, “How do I grow my portfolio quickly without draining my bank account?”

The answer…. Leverage.

Traditional bank financing can help you acquire more properties, assuming your credit is solid and your debt-to-income ratio is in check.

Private lenders can offer more flexible terms than banks, making it easier to finance additional properties.

In some cases, sellers may offer to finance the deal. This is a great way to minimize your out-of-pocket costs while still acquiring property.

As you transition from wholesaling to building a rental portfolio, it’s essential to take a step back and think about the long game. 

Where do you want to be in five, ten, or even twenty years? What does financial freedom look like for you? 

Having these milestones in place will keep you focused and motivated as you build your portfolio.

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