Have you ever watched a home renovation show from the comfort of your couch and said, “I wish I could do that, but I don’t want to get up from under this cozy blanket”?
If so, it’s your lucky day!
There’s an REI business model called virtual house flipping, and it might just be right for you. Yep, with the help of technology, you can virtually flip a house from your own home.
In this post, we’ll walk you through what virtual house flipping is, the pros and cons, and the process from research to selling your newly renovated property without leaving your primary residence.
What Is Virtual House Flipping?
Virtual house flipping is finding and controlling real estate remotely… and overseeing the reno process if it’s a rehab deal without being on-site. You are still fully involved in the flip; you just avoid the commute back and forth from the job site. Or even another state.
Consider it work-from-home house flipping!
You still need to be well-versed in all aspects of the house flipping process, maybe even more so because you need to be able to communicate and coordinate with the people on the ground at the property.
As a virtual house flipper, you are a project manager who coordinates each buying, renovation, and selling step. In many ways, the virtual house flipping approach is similar to the traditional one. You simply are not meeting face to face with agents, contractors, or touring properties in person. Instead, you are digitally conducting these meetings and market research.
Finding people you trust is key. As a virtual house flipper, you will spend time researching properties, the market, agents, contractors, local news, and more to guide your decision-making.
Benefits of Virtual House Flipping
- Invest from Home: As a virtual house flipper, you are eliminating the endless driving around. Instead, an agent or bird dog will tour the properties for you and conduct a video walkthrough so you can see the home. You also don’t have to commute to the site during renovation. You’re managing it all from your home. Or coffee shop. Or heck, even the beach.
- Invest Anywhere: Virtual house flipping allows you to invest in markets with better flipping potential than where you live. Your location doesn’t confine your property search when virtual house flipping. You can expand your investing horizons to other, more lucrative markets or those with less competition.
- Less Physical Labor: Virtual house flipping is an excellent option if you are interested in house flipping, but the physical labor of the endeavor is holding you back. It is an accessible way to enter the market and do what you love in a way that supports your lifestyle and physical abilities.
Disadvantages of Virtual House Flipping
- Lack of Quality Control: Since you will not be on-site, you may lack quality control over the project. This is why hiring vetted teams that you trust is important, from contractors to real estate agents.
- All Work Is Contracted: Sometimes, flippers try to save money by doing work themselves instead of hiring a crew for everything. Hello, DIY. But with virtual house flipping, since you will be distanced from the job site, every part of the process will have to be contracted out, including even minor construction/reno work.
- Technological Difficulties: Look, technology fails. If you don’t have access to Wi-Fi or a system is down or super slow, you may have trouble managing your virtual house flip. Make sure you have a steady internet connection and a working knowledge of the resources you need to run your REI business before diving into the deep end.
Virtual House Flipping Process
1. Market Research
Your virtual house flipping journey should start with extensive market research using online tools. Identify what state, city, and neighborhood you want to invest in, narrowing the focus more and more based on your research. Deciding what your budget/investment goals are is also important during this step.
2. Finding the Right Property
Work with a trusted agent or bird dog to find the ideal property for your REI business. They can give you a virtual tour of properties based on your search criteria, so you can find one that matches your needs and budget.
3. Financing
The next step is to secure financing for your flip from a lender or financial institution that will accept an online application and approval process.
4. Remote Due Diligence
Complete your due diligence by working with a trusted local agent or bird dog for boots on the ground. Working with a knowledgeable local will ensure you know as much information as possible about the property before you do a deal.
5. Getting the Property Under Contract
Once you’ve found the right property, you can submit an offer over or even email and texting. You’ll use comps to decide on the right offer price.
6. Renovations
Now, if you’re just flipping/wholesaling the property, you can move on to marketing the contract for it.
If the property needs to be reno’d, connect with local contractors with positive reviews and great reputations or through referrals, so you know your property is in good hands since you aren’t there to oversee the process.
Real estate agents and local closing attorneys may have contacts they can share with you of local trusted contractors who their clients have worked with in the past.
7. Close and Profit
After marketing the property’s contract, once you’ve found a buyer, you’re nearly done. All the paperwork needs to be completed — using a closing attorney — then the deal is closed. And the best… you make a sweet profit.
And with that, you just completed a virtual house flip!
Final Thoughts — Can You Flip Houses Virtually?
Virtual house flipping opens up endless markets for your REI business.
No excuses when you can do deals from home, amIright?
The key to virtual house flipping is working with teams you trust since you aren’t on the ground to oversee the process. Utilize technology to conduct market research on the area you’re considering investing in, find an agent or bird dog, and connect with highly rated contractors and closing attys.
Virtual house flipping allows investors to enter markets in areas that may be less costly or have less competition than where they actually live.
So, what are you waiting for? Start your virtual house flipping business today!
