10 Steps to Virtual Wholesaling in 2023 – Complete Guide
It’s 2023, and wholesaling virtually is easier than ever with all the tools at your disposal.
But let’s get one thing straight: making money SUCCESSFULLY and quickly via virtual wholesaling is still not a walk in the park.
You might be scratching your head over selecting the right market or pulling your hair out trying to organize an effective team. Trust me, we’ve all been there. But here’s the good news: it’s simpler than it appears, and I’m here to guide you through it.
In this comprehensive article, we’ll deep dive into the exact strategy and guide to starting a virtual wholesaling gig from anywhere in the world—yes, even from your mom’s basement—and doing it successfully.
Ready to dive into the art and science of virtual wholesaling? Let’s get started.
What is Virtual Wholesaling?
Virtual wholesaling is the modern evolution of real estate wholesaling, allowing investors to connect property sellers and buyers without ever having to set foot on the property or even be in the same geographic location.
Leveraging digital platforms and remote communication tools, virtual wholesalers facilitate property transactions by putting a property under contract and then assigning that contract to an end buyer—all done digitally.
The beauty of this approach is that it eliminates the barriers of geography, letting you tap into markets that may offer better opportunities than your local scene.
There you have it—a concise yet rich definition tailored for your quick Google snippet needs. But keep reading, because that’s just the tip of the iceberg.
We’re going to delve into the nitty-gritty of how you can make virtual wholesaling not just a buzzword, but a profitable venture for you in 2023.
1. Identify a market
Okay, let’s get into the meat and potatoes of virtual wholesaling—the market. Identifying a market is like setting the GPS for your journey. It’s the first decision that impacts every other decision. No pressure, right?
Now, here’s what you need to know: a golden market for virtual wholesaling has two big ingredients:
A Marketplace of Discounted Houses: You need sellers willing to part with their properties at a lower-than-market price.
Cash Buyers: The fuel to your fire. These are people ready to buy a property, fast and without hassle.
Miss out on either of these, and you’re fighting an uphill battle. But nail both, and you’re on the fast track to success. Here’s how to find that ideal market.
Quick Tips to Identify a Perfect Market
Follow the Wholesalers: If there are other wholesalers already active in a market, that’s a solid clue you’re onto something good. Remember, competition is not always bad. It’s often a sign of opportunity.
Leverage List Source: Want data? List Source can provide you with insights like how many cash buyers are in your targeted market. The more cash buyers, the better your chances of closing deals.
Check the Cash Sales: Still on List Source, you can also dig up how many cash sales happened recently. High numbers? Jackpot. It means the market is liquid and deals are happening.
Price Matters: Markets with lower property prices (let’s say less than $300k) are typically easier to get into. It lowers the barriers to entry and reduces the financial risk.
Population Density: Try to target markets with a population of at least 1 million. A larger pool of potential buyers and sellers increases your chances of finding that perfect match.
There you have it. Finding the right market isn’t just a guessing game; it’s a calculated move, backed by hard data and strategic observation. And if you play your cards right, you’re not just another wholesaler; you’re the smart wholesaler who knows where to fish.
What’s next? Now that you know how to pick a market, we’re going to dive into how to analyze it. Trust me, the deeper you go, the more gold you’ll find. Keep reading.
Here’s a quick video on the cheapest markets to virtual wholesaling in:
3. Reverse Wholesaling
One of the easiest ways to get started is reverse wholesaling.
It’s a little tricky to pull off if you’re virtual, but it CAN be done, and it can skip the huge learning curve you need for step number 2 in analyzing deals. Analysing deals is the “bread and butter” of wholesaling. you MUST get it right. And it takes time to get it right.
But reverse wholesaling skips all that.
Here’s a quick definition of reverse wholesaling:
Reverse wholesaling is essentially a flip of the standard wholesaling process. Instead of first finding a discounted property and then hustling to find a cash buyer, you do it the other way around. You start by locking in your cash buyers, understanding their wants and needs, and then you find the perfect property that fits their criteria.
Why is this genius? Because you’re not throwing darts in the dark hoping to hit a bullseye. You already have a target—the cash buyer—and now you’re simply looking for the dart that hits it dead center. It’s a more strategic, laser-focused approach that can supercharge your virtual wholesaling venture.
Think of reverse wholesaling as a smart cheat code. If regular wholesaling is fishing with a net, reverse wholesaling is like having a fish finder, showing you exactly where the biggest catches are swimming.
Got it? Good. Because understanding reverse wholesaling can be the ace up your sleeve in the world of virtual wholesaling. Now, you’re not just a player; you’re playing to win.
How to accomplish reverse wholesaling virtually?
So you’ve got your eyes on reverse wholesaling, and you’re ready to take it to the virtual arena. Fantastic! But hold your horses—there are a few twists in the virtual landscape you’ll want to be prepared for. Specifically, how do you make sure your cash buyer doesn’t go behind your back? How do you effectively communicate with the seller from afar? And let’s not forget the walkthrough—how do you handle that without actually being there?
Here are some tips for doing Reverse wholesaling virtually
1.) Build trust: Relationships are key. Establish strong relationships with your cash buyers so they see the value in keeping you as the middleman. Remember, you’re saving them time and effort by sourcing deals that fit their criteria.
2.) Vacant houses only: Only conduct walkthroughs with vacant houses
3.) Digital Tools: Use video calls to establish a more personal connection with sellers. Platforms like Zoom or Skype allow you to read facial expressions and body language, adding a layer of trust that emails and phone calls can’t provide.
4.) Virtual Walkthroughs: Utilize technologies like 3D virtual tours to allow cash buyers to experience the property without being physically present.
Here’s a quick video on reverse wholesaling
4. Visit the area
Alright, you’ve picked a market and have your strategy locked in, but there’s one more thing you might consider doing—visiting the area. Wait, what? I thought this was “virtual” wholesaling? True, but stick with me for a second.
You can think of visiting the area as a “business expense.” Why? Because sometimes, to truly understand the dynamics of a local market, you need to set foot in it. It’s like doing a dress rehearsal before the big show. Let’s look at what you could do if you decide to make the trip.
What to Do When You’re There
- REIA and Investing Clubs: Start by attending a few Real Estate Investor Association (REIA) meetings or other real estate investing clubs. You’ll not only gather some local intel but also make crucial connections.
- Talk to Top Agents: These pros know the market inside and out. Tour a house with them, go out for a coffee, and listen more than you talk. You can find them on sites like Redfin, Zillow, MLS, and Realtor.com. They’re usually the ones with the top reviews and most listings.
- Primer to Building Your Team: Meeting local experts is your primer for the next big step—building your dream team. The relationships you cultivate now will pay dividends later.
- Tour the Neighborhoods: Walking around gives you a gut feeling about an area. Sometimes, the vibes tell you more than data can.
- Drive for Dollars: Since you’re already there, why not do a bit of scouting? Drive around, spot potential deals, and jot them down. You might stumble upon a diamond in the rough.
Visiting your chosen market in person isn’t mandatory, but it can be an incredibly useful exercise. Think of it as due diligence—investing a little to potentially gain a lot. Plus, you’ll feel more confident about doing deals in an area you’ve actually been to.
Alright, you’ve laid the groundwork, and it’s rock solid. Up next, let’s talk about assembling that team I mentioned earlier. Because, let’s face it, two heads—or more—are better than one. Keep reading; we’re building momentum!
5. Assemble your Tool Kit
Boom! You’ve picked your market, maybe even visited the area, and you’re pumped to get started. But let’s hit pause for a second and talk about something absolutely vital—your toolkit.
Here’s the deal: Virtual wholesaling in 2023 is like playing a video game with cheat codes. Why? Because we’re blessed with an arsenal of digital tools that can make your life ridiculously easier, and they’re affordable too.
The Power of Digital Tools in Virtual Wholesaling
- Data at Your Fingertips: Remember the days when you had to manually search for properties or sift through paper records? Neither do we! Platforms like List Source or PropStream (check out Propstream review here) give you data so granular, it’s like having a microscope for the property market.
- Automated Outreach: CRM systems aren’t just for big corporations. Use platforms like Podio to manage your leads, schedule follow-ups, and automate your emails and texts. The less time you spend on admin, the more time you have for deal-making.
- Virtual Connections: Video calling through Zoom or Skype doesn’t just cut down travel costs; it also opens up your networking circle. Now you can build rapport with anyone, anywhere.
- Digital Contracts: Tools like DocuSign have revolutionized the way we handle contracts. Get agreements signed, sealed, and delivered without leaving your home.
- Local Insights, Globally: Use Google Maps or neighborhood-specific forums to get local insights without being local. These tools can provide you with the lay of the land right from your laptop.
Let’s be clear—having the right tools doesn’t just make your job easier; it makes it possible to scale and grow. Imagine trying to dig a tunnel with a spoon when you could be using a bulldozer. That’s the difference tools make.
So there it is, your toolbox is ready. Up next, we’ll talk about building the team that will wield these tools like the pros they are. Stick around, because you’re turning into a virtual wholesaling powerhouse.
Here are some software that almost every virtual wholesaler would need:
6. Assemble your team
Okay, let’s talk about the secret sauce that separates the wannabes from the true virtual wholesaling moguls—building a team.
Now, hold on. When I say “team,” I’m not necessarily talking about hiring a bunch of full-time employees. Your team can be a flexible network of go-to professionals who add unique skills and expertise to your operation.
Why do you need a team? Because no one becomes a real estate tycoon all by themselves. And the best part? Your team doesn’t have to clock into an office every day. These are folks you can rely on, virtually or otherwise, to make the dream work.
The Key Players in Your Virtual Wholesaling Team
Agents: Real estate agents can be goldmines of opportunity. They can help you filter through properties and can be your first call for market advice. Their insights can be invaluable when navigating unfamiliar territory.
Contractors: Unless you’re a home improvement guru, you’ll need a trustworthy contractor to provide accurate repair estimates. Their expertise can help you gauge the viability and profitability of a deal.
Property Managers: Especially useful if you’re dealing with rental properties. These folks can help you understand the nitty-gritty of local rental markets and can be your boots on the ground when you can’t be there.
Real Estate Attorneys: Legal pitfalls can break a deal. Having a savvy real estate attorney ensures you’re operating within the law and can save you from potential catastrophes down the line.
Local Investors and Wholesalers: A little peer-to-peer networking can go a long way. Sharing leads, market trends, or simply bouncing ideas off each other can be incredibly beneficial.
Virtual Assistants: When things start to get busy—and they will—a virtual assistant can help you manage tasks that don’t need your direct attention, allowing you to focus on deal-making.
Financial Adviser: This is someone who can help you navigate the financial intricacies of real estate investing, from leveraging your capital to optimizing your tax strategy.
Building a team is like assembling a Swiss Army knife. Each component, or in this case, each team member, has a unique function that can be instrumental when faced with different challenges. And the combined force? Unstoppable.
Here’s a quick video on building a virtual wholesaling team:
7. Build Self Confidence
Ah, confidence—the invisible yet palpable force that can make or break your journey into virtual wholesaling. Before you ask, no, you don’t need to have years of experience to exude confidence. In fact, some of the most confident people in history started with zero experience.
Take John D. Rockefeller, for instance. The man didn’t jump into the oil refining business as an expert; he started as someone willing to learn, adapt, and most importantly, believe in himself. Confidence was his stepping stone to becoming a business titan.
Why Confidence Matters
Building Relationships: People are naturally drawn to confidence. Whether you’re dealing with agents, contractors, or buyers, being confident helps establish trust.
Making Strong Offers: When you present an offer with confidence, it packs an extra punch. It tells the seller you mean business, even if you’re a newcomer.
Weathering the Storm: Let’s face it, this journey will have its ups and downs. Confidence is the cushion that softens the blows, keeping you resilient through the bad times.
Books to Boost Your Confidence
Sometimes, a little inspiration can fuel a lot of confidence. Here are a few books that can help you elevate your mindset:
“Think and Grow Rich” by Napoleon Hill: This classic is packed with wisdom about how self-belief can lead to riches, both tangible and intangible.
“Titan: The Life of John D. Rockefeller, Sr.” by Ron Chernow: Get inside the mind of one of the most confident and successful entrepreneurs in history.
“The Power of Self-Confidence” by Brian Tracy: This book breaks down the concept of confidence into actionable steps.
“Daring Greatly” by Brené Brown: Learn how vulnerability and confidence can co-exist and make you a more effective and empathetic leader.
“Mindset: The New Psychology of Success” by Carol S. Dweck: Understand how a “growth mindset” can be the foundation of your confidence and success.
Remember, your confidence can be both your shield and your sword, protecting you and clearing the path ahead. So, wear it like armor and wield it like a weapon.
Up next, we’ll talk about the final steps to take your virtual wholesaling game to the next level. Trust me, you don’t want to miss this. Stay tuned.
8. Lead Generation: The fuel
We’ve covered a lot of ground so far, but now it’s time to dig into the engine that makes your virtual wholesaling machine roar—lead generation. Think of it this way: if making deals is the goal, then leads are the opportunities that get you there.
Aim High, Aim Often
You should aim to make at least 100 offers a month. Yes, 100. Sounds like a lot? Well, it’s a numbers game, and the more shots you take, the more you score. And if you find yourself falling short of that number, don’t hesitate to throw in some offers on the MLS. Sure, they’re long shots, but they keep you in the game and laser-focused on your goals.
Lead Gen Tactics Tailored for Virtual Wholesaling
Cold Calling: Old school, but effective. Get a list of potential sellers and start dialing. The more calls you make, the better your odds.
Direct Mail: Sending out postcards or letters to niche lists and absentee homeowners can yield surprising results. It’s a numbers game, but one letter could lead you to that golden deal.
Agents: Building strong relationships with agents can give you access to off-market listings or first dibs on new ones. They’re your eyes and ears on the ground.
Bandit Signs: You can hire local folks to place these “We Buy Houses” signs for you. Pay them per sign and make sure it’s legal in the area you’re targeting.
Bird Dogs: These are your freelance scouts. People like postal workers often spot distressed homes before anyone else. A small finder’s fee can turn them into excellent lead generators.
Keep Your Eyes on the Prize
Set measurable goals, like making 100 offers or generating 20 solid leads per month. These targets act as your North Star, guiding you through the complexities and challenges of virtual wholesaling.
To sum it up, lead generation isn’t just an activity; it’s the lifeblood of your business. The more robust your lead gen tactics, the stronger and more sustainable your virtual wholesaling operation will be.
In the next and final section, we’ll tie it all together and set you up for launch. Ready for the final countdown? Keep reading.
9. Negotiation – Making the offer virtually
You’ve built your team, assembled your tools, and generated some promising leads. Now comes the moment of truth—making the offer. But not just any offer, a virtual offer. In a world where deals are increasingly closed over Zoom calls and emails, understanding the art of virtual negotiation is a game-changer.
Conducting Virtual Appointments Over the Phone
Thanks to technology, “face-to-face” appointments are no longer limited to physical meetings. A phone call or a video chat can be just as effective, if not more so, in some cases. Here’s how to go about it:
Gather Details: Start by asking the seller about the property. You want to collect all the information you can to make an informed offer. This is your intel gathering phase.
Why Are They Selling?: Understanding the seller’s motivation can give you insights into how flexible they might be on the price and terms.
What’s Their Price?: Ask what they want for the property. It sets the benchmark for your offer.
Sweeten the Deal: Ask them what they’d take today if it were all cash and they didn’t have to worry about closing costs, repairs, or any other hassles.
Nail it Down: Before ending the call, ask one more time: “Is that the lowest you’d take if I can buy your house in two weeks?” This is often where the real bottom line comes out.
Making an Offer: Two Approaches:
1.) The Instant Offer: Some seasoned wholesalers make an offer right there on the spot. If you’ve got the experience and the numbers add up, go for it.
2.) The Follow-Up: Others prefer to say, “Let me crunch some numbers and get back to you today.” This approach gives you time to review the details and consult your team or tools to make a calculated offer.
Key Questions to Ask the Seller:
- Details about the house (number of bedrooms, bathrooms, condition, etc.)
- Why they’re selling
- What they’re asking for the property
- Their lowest cash offer that would make them sell today
- Reiterate the lowest offer one more time for clarity
- Remember, negotiation isn’t about tricking someone into a deal; it’s about finding a mutually beneficial arrangement. Be transparent, respectful, and, above all, listen.
Here’s a quick video on negotiating:
10. Finding cash buyers – your gold list
You’ve identified a market, built a team, generated leads, and made a killer offer. What’s next? Well, the final linchpin in your virtual wholesaling journey is finding the right cash buyer. This is where the rubber meets the road, where your efforts transform into actual, tangible profit.
How to Find Cash Buyers
- PropStream’s Goldmine: Pull a list of cash buyers from PropStream and get to work. Mail them, call them—whatever it takes to grab their attention.
- Network with Other Wholesalers: Sometimes, your best buyers are other wholesalers. Why? They already have an existing network of buyers and may just have the perfect one for your deal.
- Social Media Outreach: Don’t underestimate the power of Facebook groups filled with real estate investors. A simple post can generate immediate interest.
Building Your Cash Buyers List
- Weekly Email List: Consistently mailing and calling cash buyers not only helps you find one for your current deal but also allows you to build an ever-growing email list for future deals.
- Social Media Engagement: If someone shows interest in your deal on platforms like Facebook or LinkedIn, don’t just celebrate—add them to your email list.
- Regular Communication: This is key. Keep the lines open, update them on new and upcoming deals, market trends, or even educational content. Your goal is to become their go-to source for real estate opportunities.
Advanced Tips for Nurturing Your Cash Buyers
- The Personal Touch: Got a hot list of actual cash buyers? Send them a small gift as a token of appreciation. This leaves a lasting impression.
- No Deal, No Problem: Don’t have a deal right now? That’s okay. Keep the communication flowing. Tease upcoming opportunities or share valuable market insights.
- Promote Other Wholesalers’ Deals: Don’t hesitate to share deals from other wholesalers with your list. It shows you’re active in the market and adds value to your cash buyers.
The bottom line? Your email list is an invaluable asset; it’s like a treasure trove of golden opportunities. But like any relationship, it thrives on consistent and meaningful communication.
And there you have it—the final piece that completes your virtual wholesaling puzzle. You’re now armed with the insights, strategies, and tips you need to make it big in this exciting world of virtual real estate investment. So what are you waiting for? The road to success is paved; all you have to do is start walking.