Going Remote: Virtual Wholesaling Real Estate

There is no doubt that in the twenty-first century, we have seen exponential movement from actual living to virtual living, with the years between 2020 and 2023 showing one of the most significant upward curves in that trend.

As more of us have set up a permanent camp in working from home, we can now see new opportunities that were not there before or were difficult to access.

One of those opportunities is wholesale real estate.

Dealing in real estate semi-virtually is something that many of us are familiar with, but what if we told you there was a way of being involved in property contracts without leaving the house?

No driving for dollars, no meeting clients in person, and additionally, no ownership of the property you are dealing with. Sounds too good to be true?

Well, it certainly is accurate, and in this article, we will show you what it means to be a virtual wholesaler, the benefits, and tips for dealing in a property without leaving your sofa.

Pro Investor Tip: Use virtual tools to find, negotiate, and close deals remotely without being physically present.

What is Virtual Wholesaling Real Estate?

We will learn more about the virtual side of wholesaling real estate as we move through this article, but for now, let’s explain the meaning of basic real estate wholesaling.

Wholesaling, in this instance, is very different from being a wholesaler of bulk goods such as candy or even cars — with property, this practice involves a middle person, or wholesaler, brokering a deal between a seller and a buyer without ever owning the property themselves.

The wholesaler matches a seller and a buyer to each other and negotiates a deal.

There will be a significant difference between the sale and purchase price so that the wholesaler can pocket the difference, or they can charge a finder’s fee.

This practice is perfectly legal in most states and, in theory, is a simple process — but, as with all simple-sounding things, there are some things to consider before diving right in.

The wholesaler must act fast, match the right seller to the right buyer, be able to work very hard and be super organized. If they can get all that right, they are onto a winner.

In other words, virtual wholesaling involves buying and selling a real estate property remotely without ever visiting it in person.

Now you may be able to imagine how this could easily be done virtually. But how does digital wholesaling actually work?

Benefits of Virtual Wholesaling Real Estate

While it is advisable that you get into wholesaling only after you have researched the field thoroughly, the benefits are manyfold. Here are just some of the ways you can make it work for you:

• Great profit margins: you could make anywhere from zero to seven figures a year through virtual wholesale trading, and the amount you earn will depend on how many deals per year you close and the size of your fees.
  
  The average you can expect to make per transaction is around $10k
  
• Set your own fees: you could make more than £10k per transaction if you wanted to, but try to keep things realistic for you and everyone else in the contract, especially if you are just starting out.
  
  The buyer needs to get a return on their investment too and won’t be able to do that if your fees are too high.
  
• Minimal outlay: because you have no office space to pay for and you’re not going to be traveling around the city or state looking for properties, you can keep your costs low.
  
  You might want to invest in some essential tools, though, such as a mentor or coach, as well as a computer, a cell phone, and software that will not let you down when things get busy.
  
• No real estate license needed: since you are not at any time in the ownership of the properties you are dealing with, you don’t need a real estate license to operate.
  
  You are simply acting as the broker for this deal and passing the contract to the buyer.
  
• Balance work and life: as with any work-from-home occupation, as a virtual real estate wholesaler, you can work hard when it suits you.
  
  If you have to pick up the kids from school or want to have coffee with a friend in the middle of the day, that’s your prerogative.

Virtual Wholesaling Step by Step

How to learn the art of virtual wholesaling:

1. Get familiar with the work: we can’t stress enough how much you need to be completely familiar with the concept of wholesaling and all the legal issues involved before you embark on this venture.
   
   Research like your life depends on it, then start in your local area.
   
   Find the low-hanging fruit: find the markets that will make you the best profits—that means researching the best cities to trade in (after all, the world is your oyster here).
   
   It also means looking for ‘distressed’ properties where people are ready and willing to move ASAP and/or where there can be a good After Repair Value (ARV) for the buyer.
   
2. Line up your tools: before you begin, get the software you need to do accounting, track leads, communicate with bulk contacts, and allow people to sign contracts.
   
   No one will wait for a slow wholesaler to arrange their admin.
   
3. Create a buyer list: there are many lists out there at your disposal, including Craigslist, Google, Hard Money Lenders, and ListSource.
   
   Group your lists so that you can target the right kind of buyers with the right type of properties
   
4. Buddy up: partnerships is everything.
   
   Agents, other wholesalers, banks, insurers, title companies, and marketers are just some of the key people you will need to know and work with—contact them and chat with them regularly.
   
5. Build a marketing flow: it is vital that you are organized, know how to track and trace your leads, follow up on calls or mailouts, manage your finances, and generally be in complete control of your business.
   
   You can either do this yourself or invest in a real estate platform to do the work for you.

In the End…

How to do virtual wholesaling real estate?

It’s all in the planning.

Make sure you set up a great network of partners, compile as detailed a buyers list as possible, and understand the laws in different states, then put all your information into a place you can refer to, track, and keep dynamic.

Once you have really got to grips with all that will be involved, gathered your knowledge, and lined up your tools— then double-checked with yourself that you have what it takes to do virtual real estate wholesaling—you can look forward to some healthy profits and a pleasing work-life balance.