6 Reasons Wholesaling is Hard - Plus, The Benefits of Partnering Up

Wondering how wholesaling works and how to get started with your first wholesale deal? Or, have you been trying to close deals for a while, and you’re running into issues? You’re not alone.

Lately, there has been a lot of interest in wholesaling real estate as more and more people discover how profitable it can be. Unfortunately, many people end up getting discouraged or overwhelmed when they find the process confusing or even expensive early on.

Finding wholesale deals can be difficult. Closing the deals can be even harder. Coming up with earnest money is costly, and if you choose to go a different route with the deal (like flipping the property and/or holding it as a rental), you may need to come up with a whole lot more cash. Finding buyers and getting the contract sold can take up a lot of your time in the beginning, before you’ve built up a buyers list, and etc.

To paint a better picture, here’s a list of a few of the top reasons why beginner wholesalers give up:

1. Wholesaling can be complicated and overwhelming at first. There are lots of steps you may not be aware of. Doing everything on your own for the first few times will probably result in some mistakes, and may even lose you money.

2. Finding wholesale real estate deals is difficult. Starting out, many people think that calling up a handful of abandoned-looking properties will quickly result in a deal. But that is definitely not the case. It takes time to figure out where you get the best leads from, and the best way to contact those leads.

3. Closing wholesale deals is hard. This is the aspect that most people struggle with. They may find a handful of good leads, with people who may be interested, but when it comes time to negotiate and get that deal under contract, they run into issues.

If you’re not the most comfortable negotiating and talking with homeowners, you may have deals slipping through the cracks. Homeowners want to feel confident that they’re getting a fair deal, and that you’re going to take care of them. Newbies may not know how to convey that.

1. There are more options than simply wholesaling. When it comes to real estate, there are a lot of different financing options out there. While you could simply go the wholesale route each time, there are also seller-financing options and other routes you could go as well. For example, maybe it’s a much better deal for you to flip and sell the property yourself versus wholesaling it. Whether you’re interested in branching out or not, if you’re new to the process you may miss out on some great opportunities if you only do things one way.

2. It can be expensive at first. Not everyone has a thousand bucks to put down as earnest money. (Plus, if you want to purchase and flip the property yourself, are you financially able to fund that?)

3. You need to know people. Working with a reliable title company is key. It’s especially beneficial to work with a title company that is experienced with wholesale deals. When you’re first starting out, you may go through a few different companies before you find a good fit.

Also, it’s crucial to have a list of buyers that you can send your deals out to. You only have a very limited amount of time to get that contract sold.

Can Partnering on a Wholesale Deal Make Everything Easier?

We can go on and on about the difficulties of getting started with wholesaling, but ultimately the point of this article is to chat about how to make the whole process easier, and it’s really simple: find a partner.

There are lots of programs out there that promise to help you start your wholesaling business. Most of them cost thousands of dollars. If you want to go that route, good for you! Some programs can be very helpful, but be aware that others are not. They may just give you links to a few Youtube videos and then leave you to do everything on your own.

Partnering up with an experienced wholesaler is a better option. You work together closely in finding and closing the lead, getting the contract set up, and then selling it to a buyer. If you ever have any questions or need help with anything, your partner is just a phone call or text away. Then, you split the profits from the deal and get going on another one.

Partnering with Blue Pearl Realty on Wholesale Deals

This is exactly what we’re looking to do here at Blue Pearl Realty. We have quite a few deals under our belts, and we’ve worked out an effective process that helps us close deals fast. We have a good network of buyers, a great title company we use, and we’ve found some efficient ways to find the most promising leads.

We want to create a team of around 10 people to work with us.

We’ll coach you on finding and closing deals, and help you throughout the entire process. From helping you find the best deals, and even role-playing calls if you want some help learning how to chat with homeowners.

Even better, we don’t charge any fees. It’s absolutely free to partner up with us. We’ll simply split the profits from the deal. Share the work, share the profits.

For example, if you find the deal, we’ll close it. Want to hold the property and flip it? We can cover the financing. There are lots of ways to go about this, and we can work with you to support you where you need it.

Plus, there’s no commitment. Work with us for a few deals and if you decide to venture out and do it all on your own, go for it.

If you’re interested in partnering up on some wholesale deals so that you can make your real estate business profitable faster, reach out to us.

Give Mo a call at 801-946-6312 or email him at MSilva@BluePearlRealty.com

We’ll get back to you ASAP.