In my conversation with Daniel Versteeg, who has been wholesaling for 4 months and has already completed 6 deals, he explained what he believed to be the most important character trait required to be a successful wholesaler: ACTION TAKER.
If you looked up “action taker” or “hard work” in the real estate dictionary, you would be greeted with a smiling portrait of Daniel, because this guy has taken MASSIVE amounts of action in his first 4 months as a wholesaler. After exhausting the majority of his marketing funds on unsuccessful direct mailing campaigns in Denver, he needed to find an inexpensive source of leads, or else he would be in deep financial trouble. Therefore, he took to Zillow and started cold calling for-sale-by-owners to attempt to get a deal under contract. After two hundred calls (yes, TWO HUNDRED) and being cussed out on multiple occasions due to low ball offers, Daniel was finally able to get a deal under contract. The deal put $8,000 in his pocket, but the 4 lessons he learned were priceless:
What is the key question to ask seller?
The first lesson Daniel learned is that the key question to ask a seller is “why are you selling?” In doing so, Daniel realized that he could use the seller’s response to negotiate the best contract price. For example, for the deal that he finally got under contract, the reason why the seller was listing the property was due to structural issues. Therefore, Daniel knew that the seller would have a hard time finding a buyer for the property because “structural issues” are on many peoples “deal breaker” lists, so he was able to beat them down on the price.
Wholesaling is not easy
Does making 200 cold calls seem easy? Well, Daniel would say “heck no.” With his 4 months of experience, he has come to realize that wholesaling is not as easy as the experts make it out to be. You have to put in a lot of effort and time, especially when building a foundation, but Daniel believes that the rewards you will reap will ultimately be worth all of the hard work!
Be prepared for rejection
When making 200 calls and getting only one deal, that means that Daniel was rejected 199 times! Therefore, if you want to be a wholesaler, you must be prepared for rejection. Whether it is a soft “no thanks” or if you get cussed out, you have to keep picking up the phone until you find that deal!
Based off of 4 months as a wholesaler, Daniel’s best real estate investing advice ever is that you must take action! You can have the best mindset and have the most knowledge in the world, but money is not going to automatically come to you. If your goal is to build a real estate empire, mindset and knowledge will only get you to the door. And you have to take the MASSIVE action required to open and walk through it. Also, when taking massive action, you have to understand that you are going to make mistakes. As long as you learn from them, fix them, and keep pushing the boundaries of your comfort zone, you will ultimately come out on top!
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.