📱

Get Our Mobile App

Take your business learning on the go!

Download on the App StoreGet it on Google Play

WTF Just Happened To Real Estate Wholesaling? (Graham Stephan reaction!)

Esteban Andrade I REIpreneurs24:04

Transcription

I just watched a video from Graham Stefen, one of the biggest real estate channels on YouTube right now with over 5 million subscribers. And I have to be completely honest with you, the first time I watched it, I kind of felt bad for traditional real estate investors.

Then I watched it the second time and then I realized this is not bad or a warning for wholesalers or real estate investors. This is an actual road map, a big opportunity because every single problem that Grant Stefan laid out, the frozen market, the sellers who can't move, the cities splitting apart, or the buyers that are disappearing, or even government trying to fix things and failing. Every single one of those problem is an actual door for wholesalers that know what they're doing.

And in this video, I'm going to go through Graham Stefins's data point by point, every statistic, every market signal that he identified. And I'm going to show you exactly what it means for your wholesaling business. And more importantly, what you need to do about it right now. Because here's the truth. 2026, it's going to be the year that separates the wholesalers that know how to build an actual business and know what they're doing with those people that got lucky in a hot market. So obviously, I don't want you to be in the wrong side of that. I want you to win.

If you're new to my channel, my name is Estean Andrade and I own one of the largest agencies for real estate investors and wholesalers where we generate thousands of leads every single month for flippers, wholesalers, and investors every single day to get motivated sellers. And we also build one of the biggest recruiting companies for Latin American employees that we put people inside of this business. But I don't want to talk about me today. I want to get into this. So, let's get into it right now.

So the first thing in that video that Graham did is very critical. He's saying that the housing market is not crashing. He's saying that it's freezing and that's a big difference and the difference changes in how you actually approach your business. A crash means that prices fall apart, equity disappears, and that sellers panic and they take whatever they can get. That's like 2008 all over again. But a freeze means something different. It means that the sellers can't sell and the buyers can't buy which means that the market locks up. Nobody moves. And the people who are stuck are the people that can't sell in a traditional way. People who are in divorce or they're going through a hardship, foreclosure, job loss, inheritance, you know what I'm talking about. Whether they have medical bills or they have nowhere to go. Thus, those are the people that actually get benefited.

And Graham showed the numbers. Sellers are outnumbering buyers by over 600,000. That's a crazy number. And listing prices are now lower than they were back in 2024. And homes are taking the longest time to sell in over a decade. And 47 out of the 50 states are actually getting weaker. And for a traditional homeowner that needs to sell, move out, this is a nightmare, too. But for a wholesaler and a flipper with the right marketing stack and the right offer, this is where the gold is right now. And in fact, this is the most motivated seller pool that we've actually seen in years.

Because if you listen to this, this is what a frozen market actually creates. Sellers that have been sitting with their house or with over 60 days, 90 days, 120 days that are actually desperate to sell and they can't sell. These sellers have listed with an agents. They have gotten no offers and they're desperate. And sellers that are watching their equity shrink every single day without having the ability to do anything about it. And those sellers are not going to Zillow anymore. In fact, those sellers are going to Google. And recent news and statistics show that in Google that the keyword I need to sell my house fast and how do I sell my house cash fast is actually raising to the top lately. You've noticed more people searching online. They've been searching I can't sell my house the most amount of times this year and in the last 3 to 6 months. This news was actually shown to all the wholesalers that know what they're actually doing. And the top 1% of operators are actually taking advantage of this right now. And Graham Stefen just confirmed this. Searches that go with I need to sell my house or I can't sell my house or I need help with my mortgage has hit an all-time high this year. And that, my friend, that is your pipeline. Those are the leads that you need to pursue.

And I made a video about this where I talk about the new inbound deals gold rush. And if you're not running ads right now, you're literally leaving the most motivated sellers in years on the table just because you're not getting in the game. And guess what? Someone else is actually picking up the phone and reaching out to those sellers. We have spent close to $50 million in advertising from Google and Facebook in the last 5 years. And we can tell you by certainty that this is the best way to actually get homeowners that are needing to sell their house fast. And this year alone, influencers, YouTubers, communities are talking about this. And I can tell you right now that the investors that are winning big, the ones that are making over 5 to $10 million a year, they're not cold calling at all. They're not scraping any lists. They're not doing any type of outbound. They're actually creating inbound client acquisition systems or inbound marketing systems to attract people that actually have the intention to sell. So, the frozen market is not your enemy. It's actually your best tool if you know how to use it.

Now, here's where Graham Stefen's video gets really interesting for wholesalers. And this is the part where most people in our space are completely missing. So, Graham explained why sellers are stuck. I'm going to read this for you. Mortgage rates are back above 6.5%. To qualify for the median price home of $398,000 with 20% down, you need to make $16,000 a year over six figures. And the average American family is actually $23,000 short of that number, which means that they're making about $75,000 a year. And that's that's very rough. So every single time that the rates go up just 25 basis points one quarter of 1% 1.4 million potential buyers get priced out off the market. So what does that actually mean for sellers who need to move? It means that the pool of people that are looking to buy a house traditionally is actually shrinking and it's shrinking every single month. So the offer that would have came last year at this same time with 10% below asking price is not coming or the offers are not coming at all. So the offer that could have came full price last year is actually coming 10% below asking or not even coming at all. And that same seller is actually sitting there stuck completely motionless. They can't do anything about it.

And here's the crazy truth. Most wholesalers actually come to these sellers with just a cash offer. 65 to 70% of ARV. And when the sellers say no, well, the wholeseller actually moves on. They don't deal with this anymore. And ultimately, the deal dies. But what if you could actually show up with something different? What if you could say something? I understand that you can't sell your house the traditional way and this cash offer does not really fit you, but what if I can actually give you an offer and a way to sell your house and we do a deal where you allow us to put it in the MLS and you'll be able to actually sell it for far more than if you were to get a cash offer. And that that is called innovation. And in a market like this is actually one of the most powerful tools that you can have in your wholesaler's arsenal. And here's exactly how it works. You step in as a seller's representative. You list a property on the MLS at full market value. You and the help with maybe an agent, you find a retail buyer because retail buyers are still exist. They're just harder to find right now. And you sell the property at full price to this retail buyer. and you get the difference between what you promised to the seller with what you actually get from that retail buyer. And this means no cash buyer needed, no low ball, and no seller feeling like they actually got robbed. And in a market where over 37% of home builders are cutting their prices by an average of 6%, Novations is actually the best tool to use. And noations don't just work, they actually work better than they ever have. And investors like Eric Brewer or Rich Wonders have actually been doing this for years and they've been closing deals for 40,000 50,000 $60,000 deals on novations every single time as a profit and they're taking advantage on properties that traditional wholesalers are actually walking away. So if you're a wholesaler and you don't understand the concept of using a retail buyer rather than a cash buyer, you're actually missing a lot of money in the table. But you can actually learn from people like those and can get more deals done. Which means that if you're not offering innovations right now, you're actually throwing a lot of the marketing dollars that you are putting into ads or whatever in the garbage just because you're not able to fully put together an offer like this. And in a market like this right now in 2026, you really cannot afford that.

And Graham Stefen brought something that most wholesalers don't even connect to their business, and that's oil prices. And I'm going to tell you why you should care. When oil prices rise above $100 per barrel, investors actually demand a higher return for the long-term bonds. And that pushes up the yield on the 10-year Treasury, which means that mortgage rates rise right alongside it. In short, if oil goes up, mortgage also goes up. More buyers will get priced out, which means that more sellers will be stuck. And shout out to my friend Alex Adwell. I've seen your content about oil. He's the king of oil. Anyways, but this actually goes further. The higher the oil prices, the higher the construction costs. For example, aluminum is up by 39% over the last year and steel is up by 20%. Those costs don't get absorbed by the builder. They actually get passed to the buyer. So, you have a market where existing homes are actually unaffordable and new construction is actually getting more expensive and mortgage rates are climbing, which means that the squeeze is actually coming from every direction. And what does that create? You guessed it right, more motivated sellers. More people that actually bought at the peak and they can't refinance. And more people who are behind payments and the clock is running out. And the thing is that this is not a temporary blip. This is a structural shift. and you need to know about it. A wholesalers that learn how to solve problems and understand the problem, be able to innovate, know their ICP, their ideal client profile, and is able to just understand the trends. And those that are not trying to wait until the market gets back in 2021, 2022 when it was amazing, those wholesalers will win.

Now, let's talk about the part of Graham's video where Advil is the single biggest opportunity for wholesalers in 2026. And most people are now talking about this. He showed that the market isn't just weakling. It's actually splitting apart city by city, market by market, zip code by zip code. And that split is creating a map of opportunity that most wholesalers are not even seeing because they're super focused on just a one local single bucket. Let me give you the exact number that Graham showed. Wyom 197% more sellers than buyers. Austin down 5.9% from last year already down 20% from X speak. Dallas down 3.8%. Oakland down 9.1%. Throw it up. Down 2.73% statewide. But then look at the other side of the map. Milwaukee is up by 10% yearover-year. Deltaware up 6.3%. Illinois up 6.1%. North Dakota is up by 6.4%. Do you see this trimmed? So if you're a wholeseller in Miami, for example, you're actually fighting for deals with nearly as twice as many sellers as buyers where prices are falling, where insurance costs are going through the roof and where other investors from other states are also trying to find deals. That's a brutal market to operate right now. But if you operate virtually and if you can run ads in New York, Illinois, Delaware, in markets where motivated sellers are claimful and the competition is lower, you're playing in a completely different gear. And this this is virtual wholesaling and 2026 is a single base opportunity for you to get into this type of model. And it's not just a nice to have, it's an actual strategy that is going to get you out of an oversaturated market. I'm talking about local markets.

Now, this doesn't mean that the local marketing doesn't work anymore. It does. In fact, we have worked with hundreds of real estate investors and wholesalers and working their marketing in the local home marketing is just it's a different type of market. You need to be able to actually build a brand, run the ads with your ag plan profile and be able to give offer to sellers that are impeccable. But you also got to watch out for the market itself. Listen, the technology exists. Facebook Meta is one of the biggest platforms out there. Loo is where billions of people go and do searches online. Go high level exists. You can literally build a full acquisition operations anywhere in the US or anywhere around the world. You could actually do this remotely because you only need to have a UAP. In fact, you can hire people like youth managers or acquisition managers that they don't need to be in your office and they still will be able to call these sellers and do virtual sales skates which really can be in three simultaneous markets at the same time in rolling hats in those markets where you know you're going to be making the bigger spreads. So the investors that I'm winning right now are not the ones that are grinding harder in our market. They're the ones that know where to go and take advantage of that because they know about these things.

Here's another thing that Bravish Stephan pointed out that a lot of people have heard of but never anchored on. Sellers are outnumbering buyers by over 600,000 and condos are getting absolutely crushed. About 83% more in condos are listed than buyers. Stellars are unnumbered buyers by over 600 and condos are getting absolutely crushed. 83% more condos listed than buyers. HOA fees are skyrocketing and insurance costs in Florida are going through the roof. And for a traditional buyer, that's a mmerm. But for a wholesaler with the right vine network, that's a shocking card. Because here's the thing, when the retail buyer pool trends, you have to find different value buyers. Note the first time home buyer can't qualify for a mortgage. You need to cash buyers, buy and hold investors, 401k investors, landlords who are looking to expand their portfolio at a discount and even market where prices are softening and inventory spiling up. Those buyers still exist. They are not just Zillow though. They are on investor rooms or you can find it in platforms like invest with live or even invest with base. They're also in your local wea meetups that you go every single month. you haven't done it. And those are the people that have been waiting for this exact moment. And so your job as a wholesaler in 2026 is not just to find motivated sellers, but to find the right buyers and build a network that can absorb as many deals that can come across as easily and fast as possible in any market condition obviously because if you have the right buyers, you can actually move more properties than anybody else.

And Grain Stefan made up one that I want you to connect there to business directed. He showed that every 25 basis point increase in mortgage rates tries out 1.4 million potential lives. And with oil prices rising with construction cost going out and affordability already stretched off in the window for sellers to get a good price in is actually closing. Every month that the seller waits their house is actually worth less. Their equity is shrinking and their auctionments are narrowing. So pregency at the end of day is your leverage. So if you know how to use this in self conversation, this is where you win. This is why your sales process matter a lot more in 2026 because the operators that know how to add urgency and scarcity to their sales conversation and using the right sales frameworks will actually have a higher impact to shadows. And listen like the sellers that are going to be calling you are not just motivated they are also scared and they have some sort of fear. You have to be able to uncover this fear during the sales conversation but being able to do it with tact and being able to do it with a method called anq. This way you can use neuroeotional persuasion questioning in order to help the seller move forward. It needs learning the right proper skills technique is going to help you in the north. Doing the right objection handling and really understanding this personally is going to make much much more significant impact to every single conversation. So that means that not leading with price or not leading with just trying to figure out how the property looks right but understanding the real one editionation campaign points the real fear and re uncovering everything about the seller not the house is going to be more important and then through presenting the right offer such as noations sub 2 seller finance or even a cash offer that's going to be important for the right time in the right moment because having an offer stack actually solves a problem. Even if it doesn't fit the right setter for let's say a cash offer, you would go for another type of offer that actually fits that step. So the investors that are closing more deals right now are not the ones with Dubois offer otherwise that actually have a better conversation.

So let me bring this cold way home because I don't want you to finish this view of thinking that the market is against you. No, I don't want that at all. I just want you to see what I see after I watched and video about Grand Aga and I want you to do the right bits. So, for example, if sellers cannot sell traditionally, yes, that's a door. I you could try to learn noations. If sellers can't sell traditionally, dance a door, show up with the novations offer. and think you haven't learned evations. I've made multiple videos about motivations in this YouTube channel for you to learn it and how to live shoot treacher how to pitch it and how to send a right off of or perhaps you can show up with the subject to deal a subs deal you name it get creative my friend pace mv and partner with a few deals actually teaches you this a pursuable day well there's other experts in this space that can actually tell you how to do this correctly if you actually ask the right questions so when you get to that seller and you offer this different day you are the only person in the room with the better offer and a real solution to the above.

So if searches are I can't sell my house right now, that's your door. It means that you need to start doing Google ads with Facebook ads so you can retarget people at the right time whenever they're searching online for this that the queries. I want you to build the funnel. I want you to go to my YouTube channel who learn how to do this. I mean, do you need help on how to do this? Just go to the description below, click up the link and book a call with our team to see if we can actually help you don't this fall. I wait to show up where motivated sellers are actually naughty and where actually they're going to.

So, if local markets are splitting in parks like consider going to other markets where you can actually do things virtually and if you don't know how to find buyers, well, there's many different tools that can actually help you get to that pooling. some spending markets where numbers can work better for you and start building a remote team for example with remote managers, remote closers, remote TC and remote dispel and you can hire people like this in remote matinos.com and if there's more sellers of buyers then go ahead and headunt buyers go find better buyers. Go to this wears, go to investor loop investor base, do an actual buyer a position so that you can actually have auctions for the right buyers for the right market at any given point. And here's the thing, the market is not broken for wholesalers. The market is broken for wholesalers that only know how to do one thing.

Grant Stefan ended this video saying that the era of easy money in real estate is horror. And I think he's right. But here's the part that he didn't say. The era of smart money is just starting out. So the wholesalers that learn how to use AI, learn how to use nobations, learn how to do virtual wholesaling, learn how to actually have quality seller conversations with NPQ or RI sales process, learn how to actually build an actual business will have a lot more chances than actually others that don't. So, they're not just going to survive 236. They're actually going to get ahead. They're going to get ahead so much that in 2027, they're going to be the next millionaires. And they're going to go back to this moment where everything changed and where they had to follow the new trends, innovate, and get to know their ideal claring profile again. Well, they're going to go back to this and they're going to laugh. The question is, which side are you in? Are you on site where you're staying still and not doing anything about it or you're letting that one trick going that thing do and stay don't do something different or are you going to go and do something different start running it learning how to sell properly build virtually go to other markets that is uncomfortable that it's but it's necessary to do it so if you want to be part of the max wholesalers that win this year you can also book a call with our team we actually help real estate investors and wholesalers build this funnels, run the ads, even hire remote teams, go virtual them local. If your market is something that you can crush and you know that you can actually find the right buyers and bispo, well, we're here to help you because we run one of the best Google ads with Facebook ads and pays in the market. And I just don't say this just to say that the proof is in the pudding. Like for example, RAW who exited his business because we helped him with his lead generation or this other clients that you see on the screen here that have been waiting day after day. Drying pain for example, he got to his first $50,000 month after being one month in, one month out and one month on, one month off. He was not consistent persistent at all. And the moment that he started doing Google ads with us and hiring with us, then he started building Maxual team. He started winning. I want you to do the same thing.

So if you also like this video and thought that it was very useful, subscribe to Mighty to General Shervis with a friend and give me thumbs up to just help me with that YouTube Alvarea. And uh I'll see you in the next video. Watch this video right here. That is help you learn, you know, the difference between newbies and pros. And I'll see you in the next. See you.