Wholesaling Houses is All about Your Credibility
One of the more popular posts on this site is about having a Real Estate Investor Credibility Kit. In my upcoming book, Wholesaling for Cash, I discuss the need for and how to start to build your Credibility Kit even if you have never bought or sold a home before.
Here is an excerpt from the book…
When negotiating with sellers you should have a credibility kit with you. What is a credibility kit, you may ask? The credibility kit is some “just in case” information that at times can make the difference between a deal happening or not.
A seller can be truly motivated but on occasion he/she may want to have just a little bit more reassurance that you can do what you propose on paper. What I’m talking about here is getting testimonials from sources you’ve done business with in the past, preferably on real estate transactions most. On EVERY real estate deal I close on I ask the parties of interest in the transaction to write me a letter of recommendation in their own handwriting of my integrity and how I fulfilled our agreed-upon contract.
For example the type of short one paragraph sentence may state:
I was recently involved in a real estate transaction with Mr./Mrs.Doe concerning my property at 123 Main. Mr./Mrs. Doe was very professional from our initial contact to when our deal closed. I find Mr./Mrs. Doe to have high integrity and followed through on every condition of our contract.
If you are first starting out wholesaling properties you may not have a lot of deals under your belt or quite frankly, no deals. So what do you do now? Seek out individuals who have a personal affiliation with you and would write a letter about you concerning your integrity: attorneys, bankers, pastor/religious leaders, past or current professors/educators. Try to stay away from direct relatives but use reputable sources that know you and who can vouch for your personal. This recommendation may look something like:
I have known Mr./Mrs. Doe for over eight years and I have
personally facilitated many business transactions for him/her here at First National Bank. I consider Mr./Mrs. Doe to be of high moral integrity. If you would like to speak further about my recommendation then please give me a call at 555-1212.
There are critics out there that may even think this is going a little overboard, but absolutely nothing could be further from the truth. If someone were applying for the position Chief of Staff of Cardiology at a hospital, do you think it necessary to mention that he/she graduated from medical school? Of course it is, so when you’re wholesaling houses don’t be afraid to show your credentials and experience as they relate to your character and your ability to follow through with what you say you can do on paper in a real estate transaction.
Here is my whole reason for mentioning a credibility kit and this is what it comes down to. Making real estate deals is serious business and can affect people’s lives for the better if you follow through per your contract or can have serious financial implications to an individual if you do not follow through. Even the most motivated seller would like a little bit of assurance sometimes and that assurance in the form of your credibility kit adds merit to your offer and in return a signed solid contract that is of financial beneficial interest for you. Now isn’t that what you’re really after: A Solid, Can’t Lose Deal!
If you found this information useful then feel free to sign up for early notification when the book comes out and get the other 300 pages of awesome information to help you buy, sell and market real estate in today’s market without putting your own money at risk.