In this video, Tyson Smith argues that traditional wholesaling methods—cold calling, SMS blasts, ringless voicemails, and selling contracts to cash‑buyer investors—have become ineffective as the market has evolved since 2021. After a difficult year in which his business failed to generate over $1 million in assignment fees, he overhauled his approach by abandoning cash‑buyer lists and instead marketing his contracts to retail buyers through the Multiple Listing Service (MLS). This new model, which he calls “Wholesaling V2,” lets him offer sellers substantially higher cash offers, simplifies the disposition process, and enables full transparency with homeowners. Because retail buyers are end‑users who purchase homes to live in rather than investors seeking a profit margin, they are willing to pay more, allowing higher seller payouts and eliminating the need to underwrite for investor returns. Listing contracts on the MLS exposes them to a broad pool of buyers, making disposition possible in any market. The shift has dramatically improved his business metrics, raising his lead‑to‑deal conversion from roughly 1 in 60 to 1 in 12 and positioning 2023 as his best year yet. He concludes by urging viewers who are doing at least three deals a month to book a call to learn how to implement Wholesaling V2 in their own operations.
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You need to stop relying on wholesaling real estate strategies that were made 5 years ago. The industry has changed, and what was working in 2019, 2020, and 2021 are no longer viable today. Back then, things like cold calling, SMS marketing, and RVMs used to work incredibly well, and different teams were seeing great returns. But the days of traditional wholesaling, where you can offer the seller 70% of ARV minus repair costs and then wholesale it to a flipper for a $20,000 fee, are over. If you are still relying on these legacy forms of marketing and still trying to dispo your deals by sending them out on a cash buyers list, I'd bet that your business is hurting this year. The good news is that with a few tweaks and a slightly different strategy, you can take your business to higher levels than ever before. Last year was a very hard year for my business. We struggled to make over $1 million in assignment fees, and we knew that if things didn't change, we might be done for. But instead of waiting for the market to change, we had to look at what was in our control and make changes ourselves. This led us to make a very important change in the business. We changed up our entire strategy by instead of selling our deals to cash buyers who had become very picky, we decided to start selling our deals to retail buyers who are willing to pay a lot more and are a lot easier to find. Now, this change has allowed us to blast off, and the way things are going, 2023 is going to be our best year ever. Selling our deals to retail buyers has led to several big changes in our business. We can now offer our sellers way more money than we could before. Dispo is so much easier now that we don't have to hunt down cash buyers. And 3, it has allowed us to be so much more transparent with the sellers. With our new disposition strategy that we're calling Wholesaling V2, we can now offer way more to homeowners than any other regular wholesaler can, because the end buyers we're selling our deals to are willing to pay so much more money than all these other cash buyers are. Cash buyer investors are in it to make a profit, so naturally they have to buy at certain prices to make sure they are still able to see a return on the money they invest into the deal. The end buyers we are selling to aren't investors. They are just folks who want to move into a new house and don't mind buying a fixer-upper and getting a good deal. Because of this, we don't have to underwrite for investor profit or holding costs or anything like that. We just need to make sure that we are able to sell the property for a slight discount under what the other properties in the market are listed for, Now also guys, I say that DISPO is easier because instead of having to hunt down cash buyers, we are listing every single one of our deals on the MLS. This gives us exposure to the most amount of buyers, and it allows us to DISPO deals in any market regardless of whether we have a cash buyers list there or not. And finally, this strategy has allowed us to be so much more open with sellers about what it is we're doing. In the past, wholesaling has been kind of a shady business with some wholesalers pretending like they were actually the cash buyers and that they were having to tell sellers that they were having their "contractor" walk through the house, when in reality it was a prospective assignee. With our new strategy, we are 100% straight up with the sellers about exactly what we're doing. We let them know we are not the buyer, and instead we are going to be the middleman that helps them find the buyer, and because of this, we are going to be able to pay them more money. Now a lot of people are worried that this will lead them to lose deals, that maybe the sellers won't trust them, or would rather just list the deal on the market themselves. When in reality, after switching to this method, our closing rate went up by more than 5 times. Back when we were doing the old method of wholesaling, we were locking up 1 in every 60 leads. Now with our Wholesaling V2 strategy, we are locking up 1 in 12 leads. All our sellers are looking for is to get out of their home and to get the most amount of money while also getting the speed and convenience. And you can still offer that to them while also being 100% transparent. And guys, guess what? They can feel that and they're going to be more eager to work with you. Now, if you don't want your business to fail this year, you must learn how to start selling your deals to retail buyers on the MLS. It'll allow you to lock up more deals, sell more deals, and build a business that you can be proud of. Now, if you are doing at least 3 deals a month and are looking to learn how to implement my Wholesaling V2 strategy in your business, click the link below to book a call with me, and I'll see if you guys will be a good fit. Now, as always, guys, thank you so much for watching, and I'll see you on the next one.
