Posts Tagged ‘wholesaling’

Critical Sales Advice From a Real Estate Mentor

The real estate profession is about providing a service. Unfortunately, too many people approach it with the attitude of a salesperson. Having an attitude of a salesperson will hold you back in any profession. People resist being sold to.

Many readers will recall the dinner hour before the advent of the “do not call” list. These were salespeople calling when they were most likely to find people at home. The practice by salespeople of calling during the dinner hour was so annoying that a federal law was passed allowing people to enter their phone number on a do not call list. Salespeople face harsh financial penalties for violating the list.

I’m not saying that real estate professionals are anywhere near that annoying. The point is that people don’t like having sales pushed on them. When it happens, they resist. They will hang up the phone. What they seldom do is make a purchase.

Let’s contrast that with what happens when services are offered. Whether you are a landlord, or rehabbing properties, or wholesale flipping, you are offering a service. When you offer your services, you look for a good match with what the buyer needs. Instead of trying to close the deal beginning with your opening conversation, you should be looking for ways to exceed your clients’ expectations.

Taking this approach makes a huge difference in both your business success and your self-esteem. You stop thinking that you have been rejected as a salesperson and start thinking your services just weren’t a good match at the moment.

It will improve our business because those that don’t buy from you will walk away with a positive experience when you try to help them. The opposite of trying to avoid a salesperson. When they come across someone that is a better match for your services, they are much more likely to recommend you even when they didn’t complete a deal with you.


How to Create Effective Videos for Real Estate Marketing

I think it’s safe to say, most of us are fully aware how important video marketing has become to the real estate industry. The “Virtual Tour” is indispensible for online marketing. The question now becomes how to create effective marketing videos for real estate?

You begin by taking into account exactly who your audience is. Your video takes very different approaches depending if you are selling retail or wholesaling to a rehabber. With retailing, you want to appeal to the buyers’ emotions. If you are selling wholesale, you appeal to their business sense.

In either situation, you start the video by getting to the main point quickly. People’s attention spans are very short and even shorter when surfing the internet. If you don’t grab their attention within about 3 to 5 seconds, they will be off to another web site.

Long before you pick up your video camera, you need to outline the video and write your audio script. Unless there is something very unique you want to start with, you’ll begin the video with a broad shot of the front of the property. If you’re wholesaling, the opening statement might go something like:

“This 20 year old tutor on Maple Lane is going to retail for top dollar as soon as the furnace is repaired or replaced. With all the options retail buyers have today, they simply won’t consider a house with a worn and inefficient 20-year furnace. All other maintenance is in good repair. I expect the right rehabber to have the furnace in good operating condition within 3 or 4 days after closing and be taking purchase offers in less than a week.”

Or

“This 20 year old tutor on Maple Lane is in a great location but needs a fair amount of repair to make it appealing in today’s marketplace. Still, I have it priced to leave plenty of profit for the rehabber willing to spend a month or so replacing the roof and updating much of the interior.”


Real Estate Wholesaling is About Volume and Networking

When you buy from the wholesale market, you don’t need to sell at retail to make a profit. You can sell to someone else that buys wholesale and still make a decent profit. The real estate wholesale market is not unlike any other wholesale market. In the supply chain from manufacturing to retail there are several wholesale transactions where each wholesaler makes a profit and leaves enough in the deal for the next person in the chain to profit.

The manufacturer creates the product and sells it to a national distributor that transports it to major distribution points across the country. The regional distributor sells wholesale to major retail stores and to other smaller business. Companies like Costco and Sam’s Club often buy from regional distributors and sell wholesale to other business that finally sell the products at the retail price. It’s not unusual for there to be four wholesale transactions before the product is sold at the retail level.