The Short Answer
Virtual wholesaling is a real estate investing strategy that allows you to find, negotiate, and assign property contracts without being physically present in the market. By utilizing digital tools like online platforms, CRM systems, and digital marketing, you can operate remotely in various markets across the country. This model enables you to scale your real estate wholesaling business without the limitations of geography, giving you the flexibility to target profitable opportunities nationwide.
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What Is Virtual Wholesaling?
Virtual wholesaling is a real estate investment model that operates entirely online, mirroring the traditional real estate wholesaling process but in a virtual setting. In essence, a wholesaler finds profitable real estate deals, secures contracts, and then assigns these contracts to buyers—all without being physically present. To succeed in virtual wholesaling, all you need is a computer, smartphone, a secure method for sending and signing contracts digitally, and a reliable Wi-Fi connection. This flexibility allows you to wholesale from anywhere in the world. What makes virtual wholesaling especially appealing is the ability to work remotely while accessing lucrative real estate markets, regardless of your location.
Difference 1: Physical Presence
The primary distinction between traditional and virtual wholesaling lies in the need for physical presence. Traditional wholesaling requires wholesalers to visit properties in person and build relationships with buyers and sellers face-to-face. In contrast, virtual wholesaling allows investors to establish connections and conduct transactions entirely online, using digital tools like email, video calls, and other communication channels to connect with buyers, sellers, and potential partners.
Difference 2: Access to Markets
Traditional wholesaling often limits investors to their local market, where they can network and find deals within their immediate geographic area. Virtual wholesaling, however, opens up access to multiple markets across the country, removing geographic restrictions. With virtual wholesaling, you can work in various cities or even nationwide without the need to be physically present in those markets without being restricted to the local market.
Difference 3: Tools and Technology
Traditional wholesaling relies heavily on in-person inspections, local market knowledge, and direct, face-to-face communication. On the other hand, virtual wholesaling is deeply dependent on technology. Investors use virtual tours, video calls, digital marketing, email campaigns, and other online tools to find, assess, and negotiate deals. Online platforms are integral to the virtual wholesaling model, streamlining processes and making it possible to operate efficiently across different markets remotely.
How To Start Virtual Wholesaling - Step-by-Step Guide
Step 1: Understand the Real Estate Market
The first step in virtual wholesaling is to gain a solid understanding of the real estate market. Conduct in-depth research to familiarize yourself with market trends, property values, and key indicators specific to each area. Every region has its own property laws, taxes, and regulations, which you must be aware of, even when operating remotely.
Consider these key factors when researching markets:
- Investor Interest: Is there a healthy number of cash buyers in the area to flip contracts to? Successful wholesaling relies on investor demand in the market.
- Inventory Supply: How many properties are currently on the market? A thriving market with steady buying and selling activity is ideal for wholesalers.
- Population Growth: A growing population often signals a healthy real estate market, offering more properties and opportunities for active real estate investors.
- Average Days on Market: Look for areas where properties don’t linger too long on the market. A longer average days on market can indicate slower turnover, which might deter investors.
Step 2: Choose the Right Tools
Your toolkit is essential for running a successful virtual wholesaling business model. Make sure you have reliable tools to send and sign contracts, manage buyers, work with title companies, and handle marketing.
Key considerations:
- Real Estate Contracts: Understand the various types of contracts used in wholesaling and their legal implications. Knowing your contracts is crucial when locking in deals.
- Lead Generation Tools: Utilize platforms like DealMachine for virtual driving for dollars, as well as Zillow, Redfin, and local MLS systems to find potential deals.
- CRM Systems: A customer relationship management system (CRM) will help you stay organized and maintain communication with buyers and sellers.
- Local Partnerships: Build a team of professionals on the ground, such as real estate agents, other wholesalers, and title companies, who can help you evaluate and close deals remotely.
Step 3: Build a Buyer’s List
To successfully wholesale, you need a solid list of buyers who can quickly capitalize on your deals. Your list should focus on cash buyers or companies, such as rehabbers, landlords, and real estate investors, who are likely to act fast.
Strategies to build and engage your buyer’s list:
- Frequent Communication: Keep buyers engaged by sending market updates, property insights, and valuable information that positions you as a go-to wholesaler.
- Personalized Marketing: Tailor your communication to your buyer’s preferences, whether they focus on fix-and-flip projects or rental properties.
Step 4: Find and Analyze Deals
Finding great deals requires a mix of online platforms, digital advertising, and virtual driving for dollars. Once you’ve found potential properties, it’s important to analyze each deal carefully.
When evaluating properties, consider:
- Property Type: Single-family homes, multi-family units, or commercial properties—different buyers may prefer different types.
- Market Value: Compare the property’s value with similar homes in the area to gauge profitability.
- Location Factors: Look at the neighborhood’s appeal, amenities, and potential for appreciation.
- Crime and Poverty Rates: These factors can impact the desirability of the property to end buyers.
- Repair Costs: Use repair cost estimators to calculate potential renovation expenses.
Tools like rental yield calculators and repair estimation apps can help determine whether a deal is worth pursuing.
Step 5: Close the Virtual Wholesale Deal
Once you’ve identified a viable deal, you can negotiate with the seller to reach an agreement. After the price is settled, you’ll put the property under contract. The next step is assigning the contract to another buyer.
In virtual wholesaling, you have two options:
- Assign the Contract: As the wholesaler, you transfer the rights and obligations of the contract to a buyer for a fee. The seller gets the price they agreed upon, and you profit by connecting the buyer to the deal.
- Double Closing: If you prefer not to assign the contract, you can purchase the property yourself and then immediately sell it to another buyer at a higher price. This involves more capital upfront but can offer larger profits.
Step 6: Sell the Contract
After securing a deal, you’ll market it to your buyer’s list. Use detailed presentations and persuasive marketing to highlight the property’s potential. Once you find a buyer, you can facilitate remote closings through online platforms and virtual notaries, allowing the transaction to happen seamlessly without in-person meetings.
By following these steps and leveraging technology, you can successfully navigate the virtual wholesaling real estate process from anywhere and expand your business across multiple markets.
Virtual Wholesaling Examples
Chris Arnold
Chris Arnold is a seasoned real estate investor and a prominent coach at Wholesaling Inc., specializing in virtual wholesaling real estate strategies. With over 14 years in the industry, he has developed a multifaceted business model that generates more than 300 transactions annually. His success is largely attributed to innovative marketing channels, particularly radio advertising, which he credits for providing instant credibility and high-quality leads.
Jamil Damji
Jamil Damji is another highly successful virtual wholesaler and co-founder of Kegley Real Estate, a company specializing in wholesale real estate. Jamil is known for his expertise in finding deeply discounted properties and his ability to operate in multiple markets nationwide, all while maintaining a remote and scalable business model. He is a well-known figure in the real estate investing community and has shared his journey of virtual wholesaling through coaching programs, podcasts, and social media.
Jamil’s success comes from building a strong personal brand, leveraging cutting-edge lead generation strategies, and creating a powerful network of buyers. He regularly collaborates with other real estate investors and coaches, helping others replicate his model for success in virtual wholesaling.
Final Thoughts
Virtual wholesaling real estate offers a powerful way to expand your real estate business without being tied to a specific location. Whether you’re just starting out or looking to grow your existing business, leveraging technology allows you to efficiently manage leads, analyze deals, and close transactions remotely. The ability to tap into multiple markets, combined with the freedom to work from anywhere, makes virtual wholesaling real estate an attractive option for modern real estate investors. By embracing digital tools and building a strong network, you can unlock new opportunities and scale your wholesaling business model to new heights.
