What is your moral obligation when it comes to dealing with sellers during a market recession?
Yes, you want to land the deal. Yes, you will encounter distressed sellers. How do you create a baseline of integrity that goes beyond making as much money as possible when you are in this business?
At 7 Figure Flipping, we consider integrity to be a part of our company ethos and as a result, we are committed to understanding that stewardship is every bit as important as sales tactics or negotiation techniques. It is important to make money and meet your personal company goals of financial freedom and time freedom. However, we believe that the more you help others, the more you will be blessed.
Here are the facts:
The market is currently taking a turn, and as distress increases, we are looking at a boom in business. The flipping and wholesaling business deals in distress, so when there are more problems such as; a recession, high-interest rates, and unfortunate life events, we are right in the middle of it. How will you ensure you walk the high road?
The bottom line is this:
When your goal is to provide the highest level of service possible to every seller you sit down with, you are blessed with more business and more money.
If we are going to be candid, being a wholesaler is like being a pawn shop owner. People know walking in that you are not going to pay the full value for what they are bringing you. They also need their money quickly and easily which is what they trade their equity for. What is peace of mind worth? When you show up to serve, you don’t focus on closing the deal, you focus on providing the seller with the best solution possible to solve their problem. If you know they are trading equity for money you have the power to add value back into the transaction.
You have a business to run and expenses to pay, and you will make money on the margin. And, if you show up to serve, listen and pay attention to what they need, you cannot help but add value to the transaction. It is ok to take a fee for the value you add even if you make a recommendation to another person or company better suited to solving the seller’s problem.
There is a huge difference between doing what is best for your business and the seller and taking advantage of someone. When Bill Allen first entered 7 Figure Flipping he didn’t think very highly of wholesalers. Over the course of building a wholesaling business under the mentorship of Andy McFarland, he saw firsthand not only how much work it is to run a wholesaling business and how integral they are to the real estate ecosystem, but how to be ethically responsible with wholesaling.
You have to know you can operate your wholesaling business with a foundation of stewardship and integrity. This involves showing up with your heart in every sales negotiation asking ‘How can I help?’ This will result in great reviews, referrals, and other types of value for your business. Your intention has a higher impact than sales tactics or negotiations because people can feel that you are coming from a place of service. That will help the seller open up vulnerably to you about what they truly need. The deeper you can go with the seller the more likely you will complete the transaction with integrity. When you do this you develop relationships and create a lasting business and legacy you can be proud of.
Make this your motto: Sales are service.
You don’t use tactics on people, you do things FOR people. That is what makes a great salesperson. You can have the skillset and learn all the tactics, which we will continue to provide podcasts and workshops on, but nothing will replace your attitude of service and doing what you say you will do by honoring your word.
Whether you are an established business or just starting out, this is our two cents: Create a business and products/services that you can get behind with every fiber of your being. Believe so much in what you offer that you know when you ‘sell’ something you are providing someone a value that will improve their life and truly serve them through challenging and difficult times.