As a real estate wholesaler, you naturally have questions and concerns. Real estate investment comes with risks, so one of those concerns is sure to be how you’ll find the right buyer for your property. As with any deal, understanding to whom your marketing can help you connect with a buyer of higher quality in a shorter amount of time. There are different types of wholesale deal buyers, so we’re breaking down four of them and how to land the deal with each.
The Speculative Buyer
As the name suggests, this type of wholesale deal buyer is inquisitive and will have a lot of questions. A little patience will go a long way with this potential buyer.
If you can answer the Speculative Buyer’s questions directly, you have a good shot at guiding them into a deal. Most seller’s will give up quickly on this type of buyer, mistaking the questions and mild scrutiny for disinterest. But once you’re able to gain the buyer’s trust, you’ll likely have them as a real estate investment partner for life.
The Just-Looking Buyer
There’s rarely a wholesale deal good enough for the buyer who’s just looking. While they present themselves as a very interested, engaged buyer, the truth is, they’re just kicking the tires on any property you show. The lookers can quickly eat up your time and you’ll waste money marketing to their inability to commit.
This buyer will ask several questions, none of which really speak to what you would consider an educated investor. If something seems ill fitting about the conversation, it may be best to move on to the next buyer (one who wants more than a test drive).
The Discerning Buyer
When you meet a wholesale deal buyer who’s ready to make a deal based off photos and their own market knowledge, you know you’re working with a savvy buyer. These buyers are educated, decisive, and ones you want to work with again and again.
The only word of caution with a Discerning Buyer is their aggressive attitude toward deal making. In their effort to find the best wholesale deal for themselves, they may try to talk you down on your wholesale fee. It’s not personal, just good business, but stick with your numbers. Ideally, you want your real estate investment portfolio to be filled with these types of buyers.
Wholesale deal buyers who want to use your work and find their own end buyer are nothing more than pretend buyers. The Bluffer will build himself up to be a real estate investing expert, ready to buy at the drop of a hat, but it’s just smoke and mirrors. The end goal of this buyer is typically not to leave you hanging, but rather, to tie up your property long enough to find their own end buyer and not be out any of their own cash.
It can be difficult to tell the difference between these wholesale deal buyers at first. Ask specific questions, push for a deal when appropriate and don’t waiver from your fees if the buyer attempts to talk you down. Know your numbers and have an adequate inspection period to facilitate the deal.