How different is virtual wholesaling? Is it possible? Yes it is.
By now you might have read enough articles on how real estate wholesaling is the ultimate game for an entrepreneur ready to put in his sweat but can’t spare enough cash to invest. But today we are going to talk about scaling this domain further.
Dive in to learn more!
It is a great strategy if you want to dabble in the market of your choice, increase your deal flow, and maximize your profits.
The virtual realm promises a whole new set of benefits without really making you step out of your abode.
So what would you need differently to virtually wholesale?
For the most part, it follows the same protocol as traditional wholesaling:
- Finding a distressed property
- Run the numbers on a prospective deal
- Negotiate with the seller of the property
- Find a buyer
The difference however lies in the way you execute these steps. What does that mean?
In traditional real estate wholesaling the first step you would probably take is to identify a discounted property. For that, you would adopt the strategy of driving for dollars. You would drive through neighborhoods and locate homes with signs of distress and those that can be bought under market value.
However, in virtual wholesaling this step is untenable. When wholesaling remotely ask yourself two questions. Which city? Which neighborhood? These are important questions when looking at sales boosting techniques in the field.
Remember like we discussed before, wholesaling remotely gives you wings that traditional one does not. But while it is not possible to know every area like the back of your hand, you can do your work and work out prospects of an area based on your understanding of the market.
You don’t have to limit yourself to wholesaling in the local market unlike traditional wholesaling. The sky is the limit here.
The Plan Of Action
1.Assess an area based on its value: Once your assessment is over and you have filtered out the area, comb for properties in the neighborhood. That’s typically how most traditional wholesalers would do it too and then they look up records to find details.
Since this approach would not work for virtual wholesalers, it would be a good idea to identify houses through the different apps made for real estate investors. You can find the area of your choice and start work instantly.
2.Start sending messages: Once you have identified the list of homes in the neighborhood, like traditional wholesaling start a mail campaign. Your real estate technology apps can help you manage that.
You can also alternatively use Facebook ads to target owners in the vicinity. For a more aggressive approach using online ads is a great option to get to potential sellers, even those who haven’t listed their property.
3.Run the numbers: Okay, so now that you start hearing from homeowners, the next step is to run the numbers. What is the amount you can quote and how much can you make out of it?
Now, like in traditional wholesaling, you might want to get the help of a realtor who can verify the status of the home as you start projecting the numbers of the deal.
You can’t really always trust those pictures on the Internet. You need to have a reality check.
4.Negotiate the deal: This step is no different from the traditional one. Once you find the seller, you make an offer, the client makes a counteroffer and then you decide somewhere in the middle.
Once you’ve agreed on the price, fill out a purchase and sale document.
Tip: Remember, the purchase and sale document is different for each state. Get an attorney to help you with the documentation, or you can even take the help of Google.
Once send the form to the buyer get them to fill it up, either sign it electronically or print it, scan it and then have it send via email.
In this phase, you are also required to decide whether you want to do an Assignment or Double Closing deal.
5.Find a buyer: We’ve reached the last step. Typically you don’t need to find a cash buyer unless you have a contract to offload. But those experienced in the business would tell you that it is always best to first find a buyer and then look for properties that fit his profile.
The last method though is the most recommended one, the process remains the same, even for virtual wholesaling.
So, once you have the seller and the buyer, it’s just a matter of crossing the finishing line and collecting your fee.
Virtual wholesaling has a lot of upsides. The foremost is the chance it gives the wholesaler the opportunity to hit a different market and go looking for opportunities, rather than waiting for them.
All you need is a laptop or a phone and you can get all the benefits of working from home and real estate investing at the same time.