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Virtual wholesaling is a real estate strategy that involves buying and selling properties mainly “sight unseen.” It can be done locally or in other locations, but the common goal is to not be hands on with viewing the property, meeting buyers and sellers, or even sourcing the properties.
With the advancements in technology in the last few years, virtual wholesaling is wholesale real estate done mainly through electronic means. The process can be amazingly simple, between smartphones and email, electronic document signing, and the new age of odd job VAs (virtual assistants) a deal can run from start to finish without any of the parties being in the same zip code.
Being familiar with how the real estate wholesale strategy works on a closer-to-home level first could be helpful, but is not necessary. If you are someone who is extraordinarily organized, then wholesaling (both virtually and locally) will be a breeze.
Why Virtual Wholesaling?
Here are some reasons why individuals choose to engage in virtual wholesaling:
- Local Market is Slow;
- Global Reach: Virtual wholesaling allows individuals to operate on a global scale. They are not limited by geographical boundaries and can participate in transactions from anywhere in the world. This expands the potential buyer and seller pool, increasing the chances of finding profitable deals;
- Greater Accessibility: Inventory can be accessed on a larger scale and across markets easily;
- Scalability and Flexibility: Virtual wholesaling provides scalability and flexibility in terms of deal volume. Wholesalers can handle multiple transactions simultaneously, leveraging digital tools and automation to streamline processes and maximize efficiency;
- Remote working: Working from home or while traveling is an important part of your business model.
With the increase of people who are creating careers from working at home, it is easier than ever to find a place for yourself in the virtual wholesaling world. While it is a good idea to at least make a preliminary visit to the area you want to expand into, the majority of the work can be handled straight from your smartphone.
How To Get Started in Virtual Wholesaling
To get started in virtual wholesaling real estate, you can follow these steps:
- Educate Yourself: Begin by acquiring knowledge about virtual wholesaling and the digital real estate market. Research online resources, read books, attend webinars, and join forums or communities where you can learn from experienced virtual wholesalers. Understanding the dynamics, strategies, and best practices will help you make informed decisions.
- Define Your Niche: Determine the specific type of properties you want to wholesale. This could include residential, land or multi-family. Defining your niche will make your strategy much easier when building a buyers’ list or tackling marketing.
- Build Your Network: Networking is crucial in virtual wholesaling. Connect with other virtual wholesalers, investors, and professionals in the real estate space. Building relationships can lead to potential deals and partnerships.
- Identify Potential Deals: Conduct thorough research to identify potential forms of remote lead generation. Explore online marketplaces, auction sites, social media platforms, and other databases.Look for undervalued or distressed assets that have the potential for a profitable wholesale transaction.
- Negotiate and Secure Contracts: Negotiate with the seller to secure a contract to purchase the property at a discounted price.
- Market the Property: Develop a marketing strategy to attract potential buyers for the property. Leverage online marketing techniques such as creating compelling listings, promoting through social media channels, reaching out to your network, and utilizing relevant online platforms or forums where your target buyers are active.
- Assign or Sell the Contract: Once you have interested buyers, negotiate with them to assign or sell the contract at a higher price than your acquisition cost. Ensure that the new buyer is willing and able to complete the transaction.
- Close the Transaction: Coordinate with all parties involved, including the buyer, seller, and any necessary legal or escrow services, to finalize the transaction. Ensure that all necessary documentation and funds are properly transferred.
Remember that virtual wholesaling real estate requires dedication, persistence, and continuous learning. It’s important to stay updated on industry trends, legal requirements, and technological advancements to thrive in this evolving market. Seeking guidance from professionals and experienced virtual wholesalers can also provide valuable insights and support, and expedite your learning curve.
