Wait, you can wholesale virtually?!
You probably already know that wholesaling is a proven and profitable real estate investing strategy.
But did you know that it doesn’t have to be done in your neighborhood or city?
It’s true!
You can experience the benefits of wholesaling by doing so virtually.
So …
How can you get started wholesaling virtually?
How can you find profitable wholesale deals digitally?
What are the risks involved, and how can you mitigate those risks?
We’ll answer these questions — and much more — in this virtual wholesaling guide.
What is Virtual Wholesaling?
For starters, let’s break down wholesaling.
In real estate investing, wholesalers serve as a middle man (or middle woman) between homeowners of distressed properties and real estate investors looking for their next deal.
It works like this.
Once a wholesaler gets a contract on a property, he or she sells the contract — not the property itself — to a real estate investor at a higher price.
Virtual wholesaling is simply the wholesaling process done online in today’s digital-first era.
You can experience the same advantages of wholesaling — profit ranging from a 5-10% of the selling price, the ability to do several wholesale deals at the same time and much more — virtually.
Next, we’ll take a look at some of the advantages and disadvantages of virtual wholesaling.
Advantages of Virtual Wholesaling
The upside of virtual wholesaling includes:
- No Geographical Limitations: Whereas you might be limited in your current region, virtual wholesaling allows you to look for distressed properties and real estate investors anywhere in the country.
- Enhanced Time Management: Virtual wholesaling eliminates the time spent on physically viewing properties, which can save time and gas money.
- Low Barrier of Entry. Unlike other forms of real estate investing, with wholesaling, you don’t need a ton of up front capital to get started.
Disadvantages of Virtual Wholesaling
- Can’t Visit the Property In Person: Since you can’t see the property with your own eyes, it can be difficult to fully understand the scope of the property itself and sell the contract to a real estate investor.
- Can Be Difficult to Find a Real Estate Investor: Since you’re wholesaling in regions that you aren’t physically located in, it can be a challenge to find real estate investors looking for a below the market deal.
- Paperwork: If additional paperwork is needed, for example if a title company needs an original document, it can be difficult to obtain and ship the needed documents.
How To Wholesale Real Estate Virtually in 5 Steps
1. Market Research
One of the biggest advantages of wholesaling virtually is that you can wholesale in any area of the country.
That’s a lot of real estate — and it’s important to break down which states, cities and regions you want to look for wholesale deals in.
Get started with your market research by making a list of the most advantageous wholesaling locations around the country.
Once you have a location in mind, you then can begin looking for distressed homes online.
Be sure to research the legal requirements of wholesaling in the particular region you’re interested in, given they can vary from state to state.
2. Analyze the Deal
In the specific region you’re interested in wholesaling, use real estate software to analyze homes that would be great for wholesaling.
When you have a home in mind, it’s using tools associated with the MLS — images, streetview, comps and more — that can help you build a case to sell the contract to a real estate investor.
3. Write and Market the Contract
After your home is chosen, and you’ve contacted the owner of the property, the next step is to create the wholesale contract.
Keep in mind that wholesale contracts may vary from state to state, so ensure that yours is in accordance with local regulations.
Then, market the contract to real estate investors looking for a below the market deal.
4. Assign the Contract
Once you have a real estate investor interested in the property, assign the contract, and ensure any other necessary paperwork is completed on your end.
The best part about your first virtual wholesale deal may not even be the profit — it may be creating a solid network of real estate investors that you can utilize time and time again as you continue your virtual wholesaling business.
Got it?
Virtual Wholesaling: Frequently Asked Questions
Next, we’ll take a look at some of the most frequently asked questions associated with virtual wholesaling.
Q. How Much Money Can I Make with Virtual Wholesaling?
Generally, there’s no limit to the amount you can make by virtual wholesaling.
However, the average payout is about 5% to 10% of the value of the property!
The exact amount you can earn depends on several factors, such as the property’s location, its condition, and the market demand.
Q. Do I Need a Real Estate License For Virtual Wholesaling?
No, you don’t need to have a real estate business to engage in virtual wholesaling.
A license is only a mandatory requirement for real estate brokers doing business in specific states.
Q. Is Virtual Wholesaling Profitable?
Virtual wholesaling can be profitable!
Since you’re not physically handling the properties, you can work on multiple deals in various locations simultaneously.
The key to profitability in virtual wholesaling is understanding the market you’re working in, building solid relationships with buyers and sellers, and effectively negotiating deals.
The Bottom Line: Virtual Wholesaling
There you have it: virtual wholesaling!
It’s everything wholesaling is … just virtually.
While virtual wholesaling has several advantages, including the ability to earn income anywhere in the United States, it does come with its disadvantages.
The best way you can reduce your risk and maximize your profits with virtual wholesaling is to ensure you understand the nuances of the form or real estate investing and constantly seek to grow your network.
Doing so can lead to a profitable and scalable virtual wholesaling business!
