Virtual Wholesaling: Buy & Sell Real Estate Virtually
Virtual Wholesaling of Real Estate, What Is It?
Virtual Wholesaling of Real Estate means buying and selling properties long-distance using computers, online references, fax machines and smart phones. The advantage of virtual real estate wholesaling, is that the investor can spread their efforts across multiple markets, which will maximize their potential return on investment.
Short sales, REOs, Commercial and any other type of real estate can fit into the virtual wholesaling real estate strategy.
Why would an investor opt for virtual wholesaling of real estate?
– The local market might be heavily saturated. Other markets may offer better opportunities for real estate wholesaling.
– Lucrative markets attract many investors and speculators. Other areas, may be undiscovered & undervalued. Offering better possibilities and less competition.
– Certain areas might offer more of one type of real estate, preventing diversification. You might have buyers interested in mobile home parks, if the local area does not offer many opportunities, expanding into other markets might be the best solution.
Generally virtual wholesaling of real estate follows the same rules as local investing:
- First research which real estate markets show signs of depression, but at the same time have activity with investors and speculators. Realtor.org and Grubb-Ellis.com offer updated research studies and comparisons.
- Contact local agents and construction contractors. A good place to look is on Craigslist and also local real estate investors clubs for references. Choose a few to communicate with and set up a meeting.
- Take a trip! It would be ideal to personally visit the area and meet with the agents and contractors you have chosen. Real estate is a business with personal connections and cooperation, not just an exchange of assets. Talk to your potential points of contact (agents and contractors), have them show you around, visit potential investment areas and properties. It would be a good idea to work with a few agents and contractors, not just one, in case some of them do not work out.
- Back at home, research for properties in distressed condition virtually as you would do locally: short sales, REO, motivated sellers, vacant homes and also look on Craigslist and other websites of FSBO (for sale by owner), wholesalers, etc. Study comps in the area, by having your hired agent run sample comparative market analysis for you.
- Write up sale contracts with a 10 day inspection contingency: your agent and contractor will be your eyes, so you need some time to send them to the property, take photos to send to you and give you a report.
- After the preliminary inspection period, if the property seems viable, go ahead and move forward by purchasing and reselling the property. This is where working with an “investor friendly” title company can make the whole difference – it would be ideal to establish a relationship with a title company, which deals nationwide, if you plan on being a virtual wholesaler.
- Sell/Flip the property virtually as you would do locally. Fear of not being in control and delegating some times can work against a virtual wholesaler – nowadays, with all the technology in place, what can be done locally can also be done long distance.
Different markets have different up & down swings. The supply and demand is different in every market. Which is why every investor needs to be informed and up to date on the different markets. Don’t take for granted that the same scenario in your local market applies elsewhere. Virtual Wholesaling of real estate allows the savvy investor, to invest, where they can receive the highest return on their investment.
Organization is crucial and fear of losing control is often an issue – delegating to trustworthy collaborators, hiring virtual assistants to follow up on minor tasks (like placing advertising, contacting title company, etc.) can streamline the whole operation and free up time, so the wholesaler can concentrate on more important matters, like locating the right properties, researching the market and dealing with important issues that happen along the way. Focus your Virtual Real Estate Wholesaling efforts, where they can offer you the greatest return.
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