Mastering Real Estate Wholesaling: Vince Flores' Insights
Welcome to this insightful new edition of our blog where we will be diving deep into the world of real estate wholesaling. Do you wonder why on earth someone would sell their property to you at such a discount that you could pass it on to an investor and earn $13,000?
In this post, we dive into the story of Vince Flores, a successful wholesaler in Texas. Vince explains the concept of the Four Pillars of Motivation, which play a critical role in closing such lucrative deals.
The Four Pillars of Motivation: The Deal-breakers
Vince Flores breaks down the concept of the Four Pillars of Motivation for a successful wholesale deal. He defines these pillars as urgency, condition, motivation, and price.
For his first wholesale deal, Flores identified a house using the DealMachine app, which turned out to be in the wrong town. When he called the house owner, she corrected his mistake but also expressed her intention to sell her house immediately. Flores explains how the old woman's urgency to move, her willingness to work on the price, the poor condition of the house, and her motivation (negative memories associated with the property) played into his hands.
Key Takeaway: Aligning the Four Pillars of Motivation - urgency, condition, motivation, and price, can be the secret to a successful wholesale deal. Each pillar holds significant importance in the overall negotiation process.
Going the Extra Mile: Problem-solving in Wholesale Deals
Helping your clients move, or even go on a cruise in Flores’s case, is not typically part of a wholesaler’s job. However, Flores explains that wholesaling real estate is not just about making money but also about problem-solving. Being tenacious, creative, and empathetic can make a huge difference.
Flores navigated through challenging situations like renegotiating pricing, assisting the seller with moving costs, raising private funding, and even handling unexpected requests. He comments, "My goal was not to go ahead and make sure that the deal gets done. And so I was more concerned about that because from the get-go, I said to myself, I want to start by laying down the foundation, that if you work with me, it gets done type of thing."
Making the Most of Technology: DealMachine
The DealMachine app was critical to Flores' journey, even leading to serendipitous deals from wrong numbers. The app recently introduced a free skip tracing feature, which drastically reduces the time (and money) spent on finding homeowner contact information.
DealMachine's data is verified, accurate, and up-to-date, used by the top ten banks in the US for identity verification for risk and fraud. If you wish to get access to this valuable tool, head over to dealmachine.com now!
Prioritize Relationship Building: Referrals and Repeat Business
Flores emphasizes the importance of building good relationships with homeowners. Small gestures, like gifting a manicure voucher to a struggling client, go a long way in winning trust and securing successful deals. Positive experiences often lead to referrals, creating a sustainable pipeline for future wholesale deals.
To gain further insights into this fascinating world, check out episode 88 of our podcast, where Ryan Haywood breaks down how to sell your deal effectively.
"Real estate wholesaling is not just about financial gains but also problem-solving and relationship-building. Each deal you close is a stepping stone to broadening your investor network."
About Benjy Nichols
Benjy has been a media specialist at DealMachine for the last 2.5 years. He produces, writes, shoots, and edits our media content for our member's DealMachine and Real Estate education.