Running a successful real estate investing and wholesaling business requires more than just taking care of surface-level issues. Often, the real challenges lie beneath the more obvious problems, and being able to identify them is what truly impacts the growth of your business. A little while ago I surveyed dozens of investors on what they thought helped them close more deals, with this information I compiled a list of “22 Ways To Get More Deals In Your Wholesale Real Estate Business” based on the different problem solution cycles they’ve become experienced in.

However, I’ve realized that, truly, this is a list of common problems that cause investors to lose opportunities and their solutions. Let’s discuss some of the most relevant problems and solutions that investors face with their businesses.

Common Problem-Solution Cycles Investors Face

Leads from Another State

One big challenge discussed involves investors receiving and having to deal with leads from other states. Many investors overlook these leads, dismissing them as irrelevant to their target market. However, the solution to this issue lies in how resourceful you are. Establishing joint venture (JV) agreements with investors in other states can turn these leads into great deals. By embracing a relationship-based mindset and connecting with other wholesalers or investors, you can create a win-win situation out of what you initially saw as a lost cause. Never stop looking for the hidden potential that difficult situations carry with them.

MLS Leads

MLS leads often get a bad reputation because investors automatically assume that they will lack motivation. However, it doesn’t have to be this way. Investors who put a little more effort into understanding why these leads are reaching out tend to find a lot of hidden opportunities.

I had a client in the past who made $50,000 off an MLS lead. So, with the right approach, even leads that you don’t have much hope for can bring significant profits.

Finding Buyers Outside Your Area

No one likes getting leads outside of their area, but there are opportunities that don’t have to be wasted. Expanding your buyer network beyond your main area is a game-changer. Platforms like Investor Lift make connecting with buyers outside your typical market much easier. This opens up new possibilities for deals, providing a solution for investors looking to broaden their reach and maximize their returns.

Reframing Seller Conversations

Sellers tend to be hesitant and reject offers when they first speak to investors, which happens because they have preconceived notions about the industry. Reframing the conversation by tailoring your approach to each seller and presenting various solutions (like cash purchases or creative financing) can break down barriers. Understanding the seller’s unique situation and being flexible when presenting solutions to them creates a more receptive environment for successful deals.

Lead Follow-Up

The importance of consistent and persistent lead follow-ups is often underestimated. It’s been shown that your average leads require anywhere from 5 to 11 interactions before you are able to close a deal. Having a robust lead management system is crucial if you want to ensure that these interactions happen.

Having sales agents and lead managers as a part of your team ensures that leads don’t slip through the cracks, increasing the chances of conversion.

Dealing with Low Equity Leads

Traditional wholesaling and fix-and-flip strategies thrive on properties with substantial equity. However, when it comes to dealing with low-equity leads, the solution lies in adaptability. Collaborating with JV partners who specialize in mobile homes or land can turn these seemingly less profitable deals into great opportunities.

Understanding Seller Motivations

Digging deeper into a seller’s motivations goes beyond just asking a few questions. It’s all about recognizing the underlying situations, such as divorce, job loss, or relocation, that drive sellers to make decisions. Being empathetic and working on solutions to the real underlying issues positions you as a problem solver, increasing the likelihood of successful deals.

Why Understanding These Problem Solution Cycles Matters

Staying ahead requires more than just addressing immediate challenges. Understanding and implementing these problem-solving cycles provides a great strategic advantage to investors, as they can swiftly respond to any issues they face. By adopting a mindset that looks into the root causes of issues and coming up with innovative solutions, you will ensure that your business consistently grows.

Embracing flexibility, resourcefulness, and a deep understanding of seller motivations allows you to deal with the complexities of the market and turn different obstacles into new opportunities. Incorporating these problem-solution cycles into your business strategy will enhance your chances to close deals and set the foundation for long-term success.

The Importance of Resourcefulness

Being resourceful as a real estate investor is more than just a skill – it’s a mindset. In an industry such as this one, inconveniences, and unexpected situations are inevitable. Investors who remain adaptable and resourceful regardless in the face of uncertainty are more likely to turn obstacles into opportunities.

Instead of giving up on leads or situations that are slightly inconvenient, a smart investor will find alternative solutions and explore creative options to deal with issues.

In Short!

Success when investing in real estate requires that investors take a comprehensive approach to problem-solving, marketing, and sales. By truly understanding each problem-solution cycle, investors can elevate their business, differentiate themselves in the market, and consistently provide better value to sellers.

Learn more about how to manage crises as an investor HERE!

‍