Wake Up And Smell The Coffee; Real Estate vs. Feel Estate

It's interesting how different marketing is from operations. When I was coming up with the title for this article, the first thing that came to mind was - I don't even like coffee. In fact, I was taught coffee was for heathens and tea was for civilized folk. But even if you're a heathen, I need you to understand this very important topic involving marketing and real estate.

For a long time, I was baffled with the fact that practically every new AND experienced real estate investor that we introduced to the RECFH Eco-System would be paralyzed to the concept of "Reverse Wholesaling."

What is Reverse Wholesaling [The RECFH Way]?

Reverse Wholesaling, the RECFH way, is selling real estate at a higher price first, and then (afterward) buying the property at a lower price. This process allows us to spread and extract as much risk as possible from the transaction - making it safer for all parties involved!

Back to the reason, I was baffled;

For the life of me, I couldn't figure out why no one could wrap their minds around this concept. They were all hooked on finding the deal first and then trying to find the buyer - which is obviously wayyyy riskier - for two reasons;

1. Each day you hold the property costs money
2. You may not find a buyer and get stuck with the property and have to take a huge loss (if you can afford it) or lose the property to the lender

You see, I could somewhat understand why the experienced investors had a problem - it's the opposite of what they're already used to doing. 

But what I couldn't understand was why the newbies were having such a problem with it. They have little to no experience at all. 

Then it hit me!

Real Estate vs. Feel Estate

The newbies' only exposure to real estate was the retail market. The retail real estate industry has done a superb job at marketing to the retail market. It's not uncommon for industries with big-ticket items to allow buyers to view products first and then go back and try to figure out if they can even afford to pay for it. In fact, they actually get involved to the extent of helping the buyer get qualified.

Retail Home Buyers are largely driven by emotions. The home is usually the biggest expression of who they are so, more times than not, they need to feel good about the property itself. That is why we call this type of purchase "Feel Estate."

In case you haven't figured it out yet. Emotions have no place in real estate investing! We purchase property to earn a profit, which is why we call this type of  purchase "Real Estate."

There is no way we could successfully approach sellers in the investment market and then come back later when we find out if we can afford to make the purchase. In fact, sellers (deals) don't even reveal themselves until they feel certain that you can purchase - and fast.

Can you imagine paying for advertising that says,

"Sell Me Your Home At A Price Much Lower Than You Want AND THEN I Might Get Back With You Later To Let You Know If I Can Afford It." I BUY HOUSES - CALL TODAY!

I hope you can see how ridiculous that is.

HOW WE DO IT:

As a RECFH Real Estate Entrepreneur, you have the opportunity and privilege to compete with the big boys & gals - only if you operate the system properly!

Reverse Wholesale by getting your buyers (Mortgage-Ready Landlords / JV Partners - Inner Circle) in cue first. Then operate from a cash perspective and make deals to purchase properties faster & safer than all of your competitors.

You get to pick and choose who you want to work with because no one can offer what you can. So ask yourself this question;

How many millionaires am I going to create over the next 5 to ten years?


Good Hunting!