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Virtual Wholesaling Real Estate: Strategies for Remote Success

Virtual Wholesaling Real Estate: Strategies for Remote Success

April 22, 2024
Virtual Wholesaling Real Estate Primary photo

You want to get into real estate investing but don’t have the cash to get started? I hear you. That’s where virtual wholesaling comes in.

It’s a strategy that lets you find deals, put properties under contract, and sell that contract to a cash buyer for a profit – all without ever buying the property yourself. And the best part? Location’s no barrier here – dive in from wherever you find yourself!

Imagine unlocking the secrets of earning from anywhere just using your laptop or phone. Virtual wholesaling is the key, and we’re going on a journey that puts money-making at your fingertips. Let’s get into it.

Key takeaways

  • Virtual wholesaling lets you flip houses from anywhere, tapping into more profitable markets without upfront cash. It’s all about finding deals online and selling contracts to cash buyers, using tech tools like laptops and smartphones. Key steps include picking a market, building a team, finding deals, due diligence, making offers online, and networking to sell these contracts effectively.
  • Master virtual wholesaling by picking the right marketing strategies, like direct mail and online ads. Use tech to stay organized and build a strong buyer’s list. Always be ready to adapt, communicate clearly, and partner with local pros for success.

What Is Virtual Wholesaling Real Estate?

Virtual wholesaling real estate is the process of wholesaling houses, putting properties under contract, and selling that contract to a cash buyer for a profit, also known as a finder’s fee. This method allows you to make significant profits without investing any money upfront. And the beauty of virtual wholesaling is that you can do it from anywhere in the world. This means you can tap into markets with higher potential for deals and profits. In many ways, virtual wholesaling works the same as traditional real estate wholesaling. Some of the most efficient and successful wholesale businesses that we work with all over the country are nearly one hundred percent virtual.

How Virtual Wholesaling Works

If you want to understand how virtual wholesaling works, think about a regular real estate transaction. When you purchase a property, when is any of the party’s physical presence required? Usually at the following points:

  • Meeting Real Estate Agents
  • Property Inspections
  • Closing

Contrary to popular belief, all of the above can be completed without the buyer’s physical presence. That being said, most traditional buyers and sellers would not be willing to complete a real estate transaction without first seeing the property in person. It’s largely a mindset shift, as the virtual wholesaling process is reserved for investors who take the emotion out of buying properties. By leveraging digital technologies such as the web, email, digital signatures, smartphones, and facsimile (fax), virtual wholesalers can operate in multiple markets regardless of their proximity to those areas.

Advantages of Virtual Wholesaling for Investors

As with any real estate investing strategy, there are upsides and downsides to virtual wholesaling real estate. The most significant benefits are the ability to do more transactions in less time and the lowered costs of doing business due to not visiting properties. Here are a few other advantages that are less apparent:

  • Ability to invest in markets with more opportunities without physically moving there
  • Creates more opportunities for wholesalers and the real estate market in general
  • Allows those who thought they couldn’t invest in real estate to get involved

Steps to Virtual Wholesaling Success

You can start virtually wholesaling houses by following this step-by-step process. Make sure you have the following essential tools to wholesale real estate online:

  1. Laptop or Personal Computer
  2. High-Speed Internet Connection
  3. Smart Phone
  4. Scanner or Document Scanner App

These are the most basic items you’ll invest in to get your business off the ground. Once you have the right equipment to get plugged into the internet, you may need some additional software to make the process even easier. Since many variables and scenarios cannot be explained during the time we have in this article, it’s a wise idea to find a mentor or partner who can teach you their business model, walk through the real estate contract and other paperwork you’ll need, and hold your hand on your first few deals. One of the main benefits of virtual wholesaling is that you’ll be able to operate in the market of your choice.

So it’s worth spending a little bit of extra time thinking about which markets have the best opportunities. Among the various benefits of virtual wholesaling is the opportunity to choose which markets to work in. This freedom can be somewhat overwhelming but remember you don’t have to focus all of your deals in the same area. Start by researching growing real estate markets; look at job growth, occupancy rates, and the number of available listings. These factors will help you pinpoint locations that might be well-suited to virtual wholesaling.

Build a Team

Virtual Wholesaling Real Estate build a team

Virtual wholesaling is a straightforward yet demanding real estate investing strategy. While you don’t need to be well versed in real estate markets or even technology to get started, you will have to learn fast to be successful. Keep records of contact information, create systems, and practice negotiating. Each of these components will be invaluable as you work with more and more properties. Once you finish a few contracts, you may find it helpful to hire a virtual assistant to help with parts of the process. Building a strong network of buyers and sellers is also crucial for success in virtual wholesaling.

Find Under-Market Deals

Now that you’ve virtually networked with several serious cash buyers in your target market, it’s time to find deals and make offers on the properties they want to buy. Here are some of the best ways to find virtual wholesale real estate deals:

Notice a theme? All of these digital lead sources are workable through just your laptop and cell phone. While it’s good to test what strategies work best in your market, it’s important to stick with one or two of these methods until you find success. You can systemize your processes to master and scale them to grow your business without spending more time on it.

Perform Due Diligence

The most important things to understand when negotiating your offer contract are the market value of the property, the cost of repairing the property, and your cash buyer’s purchasing criteria. With that information, you can analyze the deal to a point where you know your maximum allowable offer (MAO) – the highest price you can pay for the property. Make sure that when you put a property under contract, the language contains the following:

  • An inspection contingency that allows you to cancel the contract or renegotiate if you find any surprises during your due diligence.
  • The right to assign the contract to another party.

Again, all of this can be completed with effective communication and the right deal analysis tools – all of which can be done virtually.

Make an Offer and Send the Contract

Once you’ve found a great deal that fits your cash buyer’s criteria, it’s time to make an offer and get the property under contract. This can be done entirely online using electronic signature applications such as Docusign and DotLoop. You never even have to leave your house to sign the documents. However, you may be required to notarize documents if you’re signing a promissory note or are the seller of the property.

Find a Cash Buyer

The goal of virtual networking is to exchange your phone number, email address, and contact information to then schedule a live phone call with your potential cash buyer. Since there are many real estate investment strategies as well as property types, you need to understand exactly what properties your cash buyers are looking to invest in. Here’s a list of questions you can ask each cash buyer to establish their purchasing criteria:

  • What areas (zip codes, neighborhoods, etc.) do you like to buy in?
  • What types of properties are your favorite to buy?
  • How many deals per month can you handle?
  • What type of return on investment are you typically looking for on your properties once you renovate & resell them?

Finding the Best Virtual Wholesaling Markets

When it comes to virtual wholesaling, the key to success lies in finding the right markets. Here are some factors to consider when evaluating potential virtual wholesaling markets:

  • Population growth and demographics
  • Job market and economic stability
  • Median home prices and rental rates
  • Foreclosure and distressed property rates
  • Competition from other investors

A good way to glean these insights is by reviewing information from platforms such as the NAR and PropStream. Contrary to popular belief, you don’t need a real estate license to wholesale properties virtually. The process of wholesaling real estate does not change from one market to another. If you can find and analyze a good real estate deal in California, you should be able to do the same in New York, Texas or Florida. If you are a modern virtual wholesaler, then the internet is the best weapon in your arsenal — it gives you the whole world and all the relevant data right at your fingertips. You can wholesale real estate virtually from the comfort of your home.

Building a Strong Buyer’s List for Virtual Wholesaling

Finding cash buyers, or wholesale buyers, and building a list is crucial because you want to begin with the end in mind. Cash buyers are the people or companies that will purchase your wholesale properties. They are real estate investors who are looking to make a return on investment (ROI). Here are a few strategies you can use to find cash buyers for wholesale deals:

  • Purchase A Cash Buyer Directory
  • Set Up Bandit Signs
  • Build Your Real Estate Network
  • Leverage Relationships With Real Estate Agents
  • Find Local Landlords
  • Search Public Records & Classifieds Online
  • Utilize Social Media & Online Resources

The most common ways to close a virtual wholesale deal are:

  1. Assigning the Contract
  2. Double Closing
  3. Entity Assignment

All three of these virtual wholesaling strategies can be completed over the internet, using electronic signatures, sending documents by mail, and communicating with people over the phone.

Marketing Strategies for Virtual Wholesaling Deals

Virtual Wholesaling Real Estate deals

A successful virtual wholesaling process requires streamlined marketing. Choose whichever option that is likely to convince a homeowner to trust you with their property, such as SMS marketing. You might also need email marketing if you’re going to get selling contract rights from a title company.

When it comes to marketing channels for virtual wholesaling, three main methods stand out:

  1. Direct Mail
  2. Cold Calling
  3. Online Advertising

I’ve found the most success with direct mail campaigns, specifically targeting absentee owners and pre-foreclosures. It’s a numbers game, but if you’re consistent with your mailings, the deals will come.

Cold calling can also be effective, but it takes a certain personality to handle the rejection. If you’ve got thick skin and don’t mind hearing “no” a hundred times before you get a “yes,” then give it a shot.

Online advertising, such as Facebook ads or Google AdWords, can help you cast a wider net and reach potential sellers who might not be on your direct mail or cold calling lists. Just be prepared to spend some money upfront before seeing a return on your investment.

The key with any marketing strategy is to track your results and constantly refine your approach. What works in one market might not work in another, so be willing to adapt and try new things until you find what clicks.

Closing Virtual Wholesale Deals

Closing virtual wholesale deals isn’t all that different from traditional wholesaling. The main thing is to have a reliable title company that can handle the paperwork and closing process remotely.

I always use a double closing strategy, where I actually take ownership of the property for a brief moment before selling it to my end buyer. This helps avoid any issues with assignment contracts and keeps things clean.

Of course, you’ll need to negotiate your wholesale fee upfront with the seller. I typically aim for $5,000 to $10,000 per deal, but it depends on the price point of the property and the profit potential for my buyer.

One thing to keep in mind with virtual wholesaling is that you might need to get a little creative with your earnest money deposits. I’ve used electronic funds transfers, wire transfers, and even mobile deposit to get my earnest money to the title company quickly.

The most important thing is to have clear communication with all parties involved – the seller, the buyer, the title company, and any other professionals you’re working with. As long as everyone is on the same page, closing virtual wholesale deals can be a smooth process.

Tips for Successful Virtual Wholesaling

Virtual wholesaling can be a great way to invest in a market that may have more opportunities available and means you don’t have to physically move to another location. I find that wholesaling in general has found a tremendous amount of success for those who initially believed they were unable to invest in real estate, creating more opportunities for both wholesalers and the real estate market.

Here are a few tips I’ve learned over the years for successful virtual wholesaling:

  • Build a strong buyers list before you start making offers. You don’t want to get stuck with a property under contract and no one to sell it to.
  • Use technology to your advantage. Tools like Podio, Docusign, and Google Drive can help you manage your business from anywhere.
  • Partner with local professionals, such as real estate agents or property managers, who can be your eyes and ears on the ground.
  • Don’t be afraid to walk away from a deal if the numbers don’t work. There will always be another opportunity around the corner.

Remember, success in virtual wholesaling requires dedication, effort, and the right approach. By following the strategies outlined in this guide, you can position yourself for success in the virtual wholesaling real estate market.

Virtual wholesaling real estate offers a lucrative opportunity to generate significant profits without the need for substantial upfront investment. By leveraging the right markets, lists, marketing channels, and acquisition strategies, you can pave the way for success in virtual wholesaling. If you’re ready to dive into the world of virtual wholesaling, equip yourself with the right knowledge and tools to maximize your chances of success.

FAQs in Relation to Virtual Wholesaling Real Estate

What is virtual wholesaling in real estate?

It’s flipping properties without seeing them. You find, contract, and sell deals online, never touching the brick and mortar.

Is virtual wholesaling profitable?

Absolutely. With the right market knowledge and networking skills, it can rake in solid profits sans physical property investment.

Can I wholesale real estate remotely?

You bet. Technology lets you source deals, connect with buyers, and close sales from anywhere with an internet connection.

How do I start a virtual real estate?

Pick your niche market first. Then gather a savvy team around you to scout for under-market value deals virtually.

Conclusion

Flipping houses online is shaking things up for investors looking to pocket some cash without having to fork over a lot first. Imagine this: pinpointing those sweet-spot markets, curating a hefty contact list brimming with serious buyers, plus throwing in killer marketing strategies into the mix – that’s how you secure wins and pull profits from far and wide.

But it’s not just about the money. Virtual wholesaling gives you the freedom to invest on your terms, without the hassles of traditional real estate investing. You call the shots and make the deals that work for you.

So if you’re ready to start your virtual wholesaling journey, use the tips and strategies we covered to hit the ground running. With a little hustle and the right approach, you’ll be closing deals and cashing checks in no time. Virtual wholesaling is the future of real estate investing – and the future is yours for the taking.

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