Subto specialist Pace Morby doesn’t think so. But you will need to do a few things different here in 2023. “The first thing that comes to mind is contracts,” Pace said when he sat down with Jerry, from Flipping Mastery TV. “People need to make sure they have the proper contracts. And this comes up all the time. People don’t know where to get ’em or they’re using one that’s outdated. I update mine all the time. After each transaction, you learn something new, you call your attorney, and you tweak it.”
“And whatever you’re doing, you need to let the seller know,” Pace continues. “Way better disclosure. Now, in my contracts, I have a section in there where they have to agree, ‘You’re not in duress, I did not convince you against your will, nobody is getting manipulated here, and you know I’m making money off this property.’ My lawyer told me, ‘Do not ever put yourself in a situation where you do not disclose that you are making a profit on the deal.'”
The second thing wholesalers need to improve on for 2023 and beyond? Relationships. You should have five cash buyers in your phone right now that you could text, that know you on a first name basis. That’s it, just five. But most people don’t even have one. Yet, they’re going out there, talking to sellers; okay, say you get a house under contract, who the heck’s gonna buy it from ya? Cash buyers should be your friends. You should be out golfing with them, Pace laughs.
“Relationships to me are critical, paramount. When I walk into a room, I’m always looking, not at how I can benefit, but how other people can benefit from me. Strong relationships in 2023 are everything. Stop looking at someone as just being a part of ‘your list.’ Look at somebody as, are they in my cell phone, could I call them up and go grab a bite to eat with them? If you don’t have that in your local area, you need to do that. You need to make it a goal.”
“One conversation with the right people?” Pace says. “Can make you a million dollars a year. Life-changing. So if you’re looking at everybody as somebody on a list, you’re failing. In 2023, it’s about more transparency, it’s about what you’re up to, getting into deeper, more meaningful relationships. Find cash buyers, call them, and get to a point where you can go grab a bite to eat. They wanna hang out with you; you just gotta put in the effort to go build those relationships.”
The third thing wholesalers will need to do different this year? Is have more resources. You need to be able to go somewhere and get that earnest money, be it a line of credit or a strategic alliance with another wholesaler or you get your cash buyer to put it down. But having the resources to do this business is gonna be more important than ever. And Pace believes the number one way to level up your resources is by talking about what you’re doing.
“And how do you do that?” Pace says. “Well, you talk about it on Instagram Stories, you go into Facebook groups, you talk about what you’re doing. And a lot of people are fearful of creating content where they’re talking about their journey. Don’t be. Share what you’re learning. Other people will go, ‘Oh my God, I’m learning that too.’ You’ll start squadding up with those people, you’ll meet private money lenders, you’ll be introduced to the right title company, and on and on.”
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