Real estate is a fulfilling and financially rewarding field. However, getting a license and establishing yourself in the niche requires time and financial investment. If you want to enjoy the perks of real estate but have no funds, you can consider virtual wholesaling. While you might not need a license, you must follow various steps to build your market and industry knowledge.
What Is Virtual Wholesaling?
Virtual wholesaling is a business model where you buy and sell properties without visiting or showing them. Typical wholesale deals involve contracting homes from sellers. The agent then finds an interested buyer and flips the contract to them.
You will purchase and sell properties using online references when conducting virtual wholesaling. All the transactions will also be electronic, so you don’t need to meet with either party before closing the deal.
Virtual wholesaling differs from other business models because you won’t assume property ownership. Instead, you enter a contract and assign it to a different buyer.
Wholesalers often deal with fast-selling properties. This measure is to avoid the costs associated with regular inspection and maintenance. Wholesaling clients often need homes urgently but don’t want to deal with real estate agents.
Virtual wholesaling is lucrative because you can get into the field without money. Besides, you spread risks across several markets and maximize your returns.
Steps to Start Virtual Wholesaling
Before venturing into virtual wholesaling, you need a solid plan. You must also understand your target market and the dynamics of real estate. Here is a detailed guide on the steps you should follow for success.
Choose Profitable Markets
Real estate markets differ due to demographics, economic conditions, and housing availability. You will receive few bids if you venture into a market with limited buyers. The potential profit will also be lower, and you may sometimes incur losses.
Choose profitable markets when venturing into virtual wholesaling with no money. Evaluate which cities are currently the best for wholesale. After that, learn the applicable property laws to assess how they may impact your business.
The profitability of real estate markets frequently changes due to various factors. For example, an area with a growing population will likely have a high housing demand. On the other hand, regions with declining numbers will soon be unattractive to buyers, if not already.
Another factor that influences real estate profitability is supply. If an area has many properties, you can quickly find homes to flip. Having a variety of properties also simplifies meeting the needs of potential clients.
When venturing into virtual wholesaling, identify areas with many properties on the market. Read local papers for news on listings and property development. Further, observe areas with lucrative amenities like schools, malls, entertainment joints, and highways.
Properties in profitable markets shouldn’t stay long on the market. When researching, look out for areas where homes sell fast. Properties that spend only a few days on the market attract many buyers and have a high-profit potential.
A profitable real estate market should have a notable appreciation. When investments increase in value quickly, you can make reasonable profits. Location is a major determinant of property appreciation. Hence, areas expecting significant economic growth and infrastructural developments should be your priority when virtual wholesaling.
Assemble Your Toolkit
Virtual wholesaling requires proper data management. Marketing properties and managing operations without the right system will be hectic. You’ll also have a hard time communicating with potential clients and sellers.
Succeeding in the virtual wholesaling field requires the right toolkit. You will need software solutions for tasks like:
- Contacting buyers
- Sending and signing contracts
- Managing marketing campaigns
Customer relationship management (CRM) software is crucial in a virtual wholesaling business. An ideal solution should be cloud-based to ease data access. Likewise, it should provide actionable insights into customer behavior. This data will help you focus on high-potential buyers.
Here are other tools you might need for virtual wholesaling.
- Inbound call answering software
- SMS marketing tool
- Data management software
- Data tracking tool
Acquiring the best tools for virtual wholesaling without money can be tricky. Luckily, you can raise some cash quickly online. Pawns.app helps you share your internet for money. Since the site vets all users, you don’t have to worry about the risks associated with sharing bandwidth. The platform also provides many paid surveys. Using these, you can make passive income to cover some expenses.
Create Your Buyer’s List
Having a list of potential buyers is essential in virtual wholesaling. Before finding houses to flip, identify several cash-ready investors in the area.
Attending foreclosure auctions is one way to find prospective clients. Since such events require quick cash for properties, they are an ideal hunting ground. Most people attending such events have access to a decent amount of money. They are also looking for lucrative real estate deals in the area.
When approaching prospects in a foreclosure auction, maintain courtesy. Avoid interrupting them when they are bidding. Instead, find the right moment and try to get their email addresses or phone numbers.
Another way to build your buyers list is using Craigslist. Here, you can find potential clients looking for homes. The site is also an ideal source of leads, provided you create an attractive profile.
To build a virtual wholesaling buyers list, you can also:
- Check newspaper listings
- Use your contact list
- Attend real estate events and webinars
- Join real estate groups on social media
- Use Google to find real estate investors
- Create an email marketing campaign
Some property owners prefer renting out their homes when moving to avoid the hassle of finding buyers. Look out for houses that are available for lease in your area. Most likely, the owners are relocating and might be interested in buying homes elsewhere.
Are you worried that you don’t have enough time and resources for virtual wholesaling? Do you need someone to help you handle some operations? Partnering with others lets you establish and scale your virtual wholesaling business.
One partnership to consider is with a real estate agent. These experts possess extensive knowledge about the field. Besides that, they have many contacts and can connect you with prospects. Establishing relationships with real estate agents grants you more insights into trends. Such may relate to interest rates, property value, and growth opportunities.
Here are other partners to consider:
- Money lenders
- Other wholesalers
- Title companies
- Home inspectors
- Home care companies
Showing and selling properties virtually involves using videos and images. While you may get these from the sellers, they might not meet your standards. You may want to highlight specific areas with proper angles and editing.
When considering partnerships, look for someone who can handle some fieldwork. Such may include taking images and communicating with sellers. The partner may also help you coordinate contract signing and other legal processes.
Build Marketing Flows
Once you complete the discussed steps, it’s time to market your wholesaling business. Gather real estate data on several areas you are targeting. After that, organize the files and identify the best marketing channels. You can then create a detailed plan outlining ideal strategies and outreach methods.
When you have a ready marketing plan, implement it by identifying the homes your potential buyers want. Contact the owners, make offers on the properties, and follow up after a few days without being pushy. Securing a local partner is also advisable since some sellers may be reluctant to negotiate virtually.
Once you secure a deal, notify your prospects while highlighting why the property is perfect for their needs. The final step is to get the home under contract so you can collect your wholesaling fee.
Virtual wholesaling provides flexibility and lets you reap significant returns. Additionally, you can operate in many markets from one location.
Proper planning allows you to flip properties without an initial investment. However, you may need to make money online with side gigs to set up your toolkit. In the long run, your profits will fund operations and help you to secure more partners.
What do you need to be a virtual wholesaler?
Virtual wholesaling requires extensive research. You must understand your target market and develop strategies to convince sellers. Liaising with real estate experts gives you access to resources you might not find online. You can also rely on internet databases, local listings, and newspaper ads.
A proper marketing workflow is vital for virtual wholesaling. It allows you to convert many leads and reach the right prospects. However, you should leverage the right software to simplify communication and streamline operations.