them free, qualified leads. Yes, wholesaling exists. But new - bies often don’t appreciate that today’s wholesalers are real professional companies that spend tens of thou - sands of dollars monthly on targeted direct mail, text campaigns, targeted digital ads, SEO-optimized content creation, and managing outsourced cold-calling teams. You’re competing with the likes of HomeVestors and Sundae.com that make it their busi - ness to attract, negotiate, and close these leads in volume to fix and flip or assign deals to other local investors. Bird-dogging is another term for wholesaling but comes with a little less baggage. People that market themselves as bird dogs are strate - gically spending time and resources targeting the right people and the right properties that they know their ultimate buyers want. Creative financing deals also get tossed around as a strategy for people without money. However, this strategy is far more appropriate for seasoned pros that know how to legally structure transactions and fully explain to the seller what’s hap - pening and the associated risks with creative strategies. An example of this is subject-to investing. Maybe a homeowner gets told that their remote work option is expiring in June. They only put three percent down so there’s no way to sell the property and pay com - missions without writing a person- al check. A subject-to transaction would allow the homeowner to sell the property to an investor while leaving the existing financing in place (subject-to the existing financing). They are expecting the investor will dutifully make payments on time to protect their credit. The investor does so but is surprised when the bank calls the entire loan due. The seller
a background in sales typically includes skills in negotiating, build - ing relationships, and working well with people. These soft skills are incredibly valuable in our industry. Others have unique job experi - ence that gives them an inside track to unique leads. Like the insurance agent that has inside knowledge of burnouts, mold infestations, and claims processing. Or the pest control specialist that understands how to identify and remedy extreme termite infestations when others would run in fear. Or, a city planner that under - stands zoning, planning, and that a huge employer is coming to town that will forever impact the market. Whether you’re a systems analyst that brilliantly systematizes pro- cesses to a creative genius that can connect to the masses, there’s room for you in the business of real estate. Please do not miss this powerful piece of information that helps iden - tify your chocolate.
claims the due-on-sale clause was never disclosed and the investor is not in the position to pay the loan off. Attorneys are not cheap. An inexpe - rienced investor may get caught off guard, but an experienced investor knows how to make this work and protect themselves and the seller. This is not to suggest that creative real estate transactions don’t exist. However, it’s more of an exception than a rule. It’s sad to see newbies hang their hopes on strategies that will often leave them empty-handed and frustrated. Many give up. With or without money, there’s a way to safely succeed in the busi - ness. Don’t let the lack of capital stop you from the hustle. Don’t let the abundance of capital make you a lazy target. REFININGYOUR CHOCOLATE IN 2021 There’s no shame in being new. Even experienced pros need to rein - vent themselves from time to time when the market shifts. In 2021, focus on your chocolate. Be honest about the time you can devote to the busi - ness, the financial resources you can commit, and the unique talents that will help you differentiate yourself in the market. When you have clarity, I promise the peanut butter (the data) is far easier. You will spend less time and money connecting with your per - fect prospect, helping you close more deals, and in a niche that has you jumping out of bed in the morning. •
TREASURE Yes, cash is king. We’ve cov -
ered some of the strategies that don’t require money. However, when online influencers sell you on no-money strategies, they are typically referring to a handful of strategies that are often difficult and inappropriate for most. The most popular strategy is becoming a wholesaler. Introduce yourself as a wholesaler at your local investment club and watch eyes roll. Wholesaling has become synony - mous with newbies with no money, experience, or willingness to do what it takes. Even worse, “whole - salers” are demanding time-wasters that think showing up to a meeting warrants free lunch with a mentor that will train them for free and send
Aaron Norris is VP of Market Insights with PropertyRadar. He writes and speaks nationally on data, trends, and technology. He’s a licensed real estate and mortgage broker and has been in the industry since 2005.
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