How to Set Up a Virtual Real Estate Investment Business
Advances in technology opened the door to virtual real estate for all types of investment strategies. Buy and hold, fix and flip, short-term rentals and more are all possible methods for virtual real estate investments. Also, wholesaling translates easily to virtual real estate because the investor doesn’t take ownership of the property or the title. Virtual real estate investing creates opportunities to grow your business and your income outside of your local area.
Learn how to build a successful virtual real estate investing business by increasing your industry knowledge. Real estate investment coaching and mentoring helps avoid common startup mistakes and provides the information you need to grow a successful business. Sign up today to start developing your virtual real estate investment strategy.
Why Wholesale Real Estate Translates Easily to Virtual Real Estate Investing
The wholesale real estate investment strategy connects sellers and buyers through a nontraditional investment method. It works when an investor enters a buyer’s contract with a seller under the intention of finding a different buyer to take ownership of the property.
The investor uses their buyer’s list, network and connections to identify qualified leads interested in purchasing the property. Once the investor finds a buyer, the contract transfers from the investor to the new buyer. The seller then pays a fee to the investor for their effort to locate the buyer.
This is like your personal ATM! You don’t take possession of the property which makes it perfect for virtual real estate investing. With virtual wholesaling, the same process takes place, but the work occurs online. Virtual wholesaling connects sellers, investors and buyers across many different geographic locations.
When you take part in virtual real estate investing, you’re no longer limited to a local market. Instead, you have the advantage of entering ideal real estate markets throughout the country. Virtual real estate investing works well for short-term rental properties in tourist destinations, college towns and urban areas. You no longer need to live near an area to own rental properties in the location.
Long-term rentals and multifamily properties also make solid virtual real estate investments. A good property manager is the key with both short-term and long-term investments. When you have a person on the ground locally to assist, you don’t need to live in the area to benefit from the real estate market.
You can even purchase a property to fix and flip if you have the right team in place. Develop relationships with trusted contractors. Today’s online resources make it possible to create relationships with people anywhere so that your network deepens for each market you enter.
Overall, virtual real estate investing simply opens the door to more investment opportunities and reduces your risk because your market area expands.
Pros of Virtual Real Estate Investing
Consider starting with virtual wholesaling because it translates well to virtual procedures and is a great way to make money fast. Also, you don’t take possession of the property, which means you don’t have to deal with closing procedures, financing, inspections and other parts of traditional real estate deals.
Virtual real estate investment connects you to a larger audience of potential buyers and sellers. With virtual real estate investing you have more opportunities to make money and add to your investment portfolio. Market flexibility is one of the biggest pros for virtual real estate. To find success, you must establish a presence using the right tools to help you expand your reach and build your network with people in other locations.
Best Tools to Set Up a Virtual Real Estate Investing Business
To start your virtual real estate investing business, you need a business plan first. Your business plan helps you determine your goals, target market, financing options, budget and more. A written business plan is a great tool to create organization before you launch a new business venture.
A targeted website is another essential for virtual real estate investing. You don’t want to strictly rely on social media for exposure. You need a website to establish legitimacy and authority. Plus, with the right SEO strategy, top search engines can connect you to sellers, buyers and other investors. Your website communicates your brand image and your target market.
Social media is a great way to connect with other investors. Look for online investor groups to follow. Also, consider advertising on various platforms to gain followers. The goal is to develop connections so you can identify sellers and buyers to give you more investment opportunities.
Also, look for online resources to grow your knowledge about virtual real estate investment. Government websites contain information to help you understand real estate laws and procedures. Furthermore, eBooks, webinars, videos and blogs like this one, provide valuable insight into the industry.
Understand Different State Laws for Real Estate
Since, virtual real estate investing opens doors to investment opportunities outside of your local market, you must understand the laws for each state where you conduct business. This means you may want to target deals within specific states to keep your processes simple.
Don’t depend solely on attorneys and real estate agents to understand wholesaling laws or other regulations related to real estate investing. Contact the real estate commission in each state you practice to be certain you are following the law.
Invest in Your Virtual Real Estate Investing Knowledge
Virtual real estate is a smart investment strategy to deepen your portfolio and increase your profits. Virtual real estate investing creates even more opportunities to make money. Don’t let intimidation keep you away from virtual real estate.