“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.’”
So what’s the second thing that wholesalers should consider in 2022 going forward?
Having cash buyers in your contact list is key in this business, and a good starting point is 5. 5 investors that know you by your first name.
The problem is that the majority of investors haven’t even gotten the first one yet and they’re out pounding the pavement looking for buyers. So let’s say you have a contract on a property with no one to flip it to, you’re kinda stuck, right? You need to be out schmoozing cash buyers first!
“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 2022 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 2022, 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.”
And what’s the third thing you should be doing differently in 2022? It’s being equipped with additional tools. You’ll have to be prepared to get that initial payment from somewhere, whether it’s another source of financing, a business arrangement with some other wholesaler, or having your prospective buyer with it on hand.
However, having the skills and resources to conduct business will be more crucial than ever. And Pace feels that sharing about what you’re working on is the most effective approach to increase your resources.
“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.”