Apr
17

Why Is Wholesaling Houses Like Prostitution?

Filed Under Real Estate Investing 

Yep, if you’re wholesaling houses it has something in common with prostitution. Further, I’d like to show you how to benefit from this comparison. Whew, I feel the controversy coming, so if you’re offended, stop reading now. Otherwise, no whining and complaining!

Great, you’re still with me and I’m about to share a valuable lesson that will make you a lot of money wholesaling houses.

Let’s assume you’ve put a house under contract and you’ve got prospective buyers calling you. Inevitably you’ll get a few who want to try and negotiate your wholesaling fee. It doesn’t matter how great your deal is, they will want to know how much you’re making and try to cut your fee. You’ll recognize them right away because they try to dictate the terms of your deal and are generally a pain in the butt before they have even seen the house.

So, how do you hold your ground and get your price without cutting your fee? There are several ways. This is one of the most direct. I’d recommend using this technique on the crass buyers that annoy you from the start. It works because this gives them only two choices; they are either in or out. Here’s what you say,

French prostitutes being taken to the police station.“Look, I’m wholesaling a house and it’s a lot like prostitution. I’m more than willing to lift my dress, but you have to pay the fee. Either you want the house or you don’t.”

Now, I know this is an “off-color” example, but I use it to make a strong point. I know you’ll remember this much better than if I told you to hold your guns and get your price. Same message, but this example is so much more memorable!

When wholesaling your houses as a real estate investor, always remember to leave enough profit in it for the buyer to make their money too! Also, you don’t want to get in the habit of discounting your price to the wholesale buyer because it will set a precedence, and once set, that buyer will expect you to discount the price on every deal. A very dangerous standard to set. Stay firm.

Author: Gerald Romine

Comments

One Response to “Why Is Wholesaling Houses Like Prostitution?”

  1. Bling4Houses.com on April 21st, 2008 9:31 am

    This is great. I will definitely start using this on deals I am wholesaling. There is nothing more annoying than talking to an investor that is trying to nickel and dime you to death and like you said once you give in a nickel they want a quarter next time. Thanks for sharing your knowledge.

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