Why Real Estate Wholesaling Doesn’t Work For Newbies
Real estate is a low risk investment that mostly generates positive cash flow. Real estate wholesaling however is a branch of real estate that is deemed risky. While other real estate niches are celebrated for their low risks and lower costs, real estate wholesaling requires proper knowledge. It is almost the same as fix and flip, only that the fixing part is done away with, making it risky. The wholesaler buys a cheap and undesirable property to sell it without fixing it. A real estate investor therefore needs a vast network of buyers, sellers and real estate agents in order to successfully complete the transaction. This is one of the reasons newbie real estate wholesalers are unsuccessful or even can’t get started. If you’re new in the real estate wholesaling market and you haven’t started or you’re not achieving your goals, you may find the reason here.
Below are common reasons why real estate wholesaling doesn’t work for newbies.
Lack of Planning
Many people tend to believe real estate wholesaling is simple with few requirements and therefore one doesn’t need a plan. People expect to enter the market with no money and get to buy and sell contracts without any problem. The truth is, you need a plan with targets to be met before you start out. Whether you’re a new or experienced real estate investor, you need a plan to succeed in real estate wholesaling.
Most Real Estate Wholesaling Newbies Are Skeptical.
In real estate wholesaling, it is common for people to believe it’s too good to be true. While it is easily talked about to be simple, the reality is that being a real estate wholesaler is a demanding task at the start. You may read some blogs and watch few videos and feel you’re ready to jump into the market, until you start digging deeper. Once you dig deeper, you find out that there’s more for you to know. This is what makes you skeptic now. You then start to doubt everything you see and hear about real estate wholesaling. At the end of it, you won’t do anything because of disbelief. As a real estate wholesaler, you won’t get started and progress if you remain skeptic.
Too Afraid To Make A Mistake.
If you’re afraid to make mistakes, you will probably do nothing. Investing perfectly is something that only happens with luck which only comes when you’re doing something. It is not a crime to make a mistake when investing. You will learn from it and gain experience. Don’t talk yourself out of doing it. Mistakes should only be teachable moments in your investment journey.Misinformed or Too Informed About Real Estate Wholesaling
You can find too much information out there about real estate wholesaling. But, is the information valid? If the information is valid, is it applicable to you? As a real estate wholesaling newbie, you should be focused on the information you need. Focusing on the information that regard what you want is important.
Inconsistency
Time and consistency are some of the important success factors in real estate wholesaling. Understand that not all investors can quickly close deals. Failure to close deals leads to time loss and loss of motivation for investors. Once you decide to invest real estate, you should be consistent and don’t stop.