More and more people are working from home and interested in leaving their jobs to start their own businesses. Virtual wholesaling real estate has become a popular option for those seeking to build wealth while maintaining a greater work/life balance.
What is Virtual Wholesaling?
When you think of buying a house, you probably imagine looking at some real estate websites, working with a real estate agent, and visiting the properties you’re considering buying, observing first-hand the condition of the property. But virtual wholesaling is a whole different ball game.
Virtual wholesaling real estate is the practice of buying and quickly selling properties without actually seeing the properties in person, acting as a kind of middle person between motivated property owners looking to sell and potential investors looking to buy, often to fix and flip for profit. Technology plays a key role in facilitating these transactions.
Virtual wholesalers use technology like online classified ads, email marketing, and social media to locate motivated buyers and sellers. Technology is used further once the target property is located to determine its market value and if there’s potential for a profitable sale. The virtual wholesaler purchases the property at a low price from the motivated seller and sells the property at a higher price to the buyer. Money is made in the difference between the purchase price and the selling price.
Because of the fast-paced nature of virtual wholesaling real estate, the practice requires intestinal fortitude and a well-thought-out plan. Know the real estate laws in your state so as not to run afoul of the rules. Wholesaling real estate can be fun and profitable but you need to know the steps to start.
Virtual Wholesaling Step by Step: How to Start
To increase your chances of success, it’s best to plan your virtual wholesaling thoroughly. You’ll want to make sure you’ve got tools at the ready so you can make the most of this rapidly moving business:
- Create a network: To find the right properties to buy and sell, as well as to market the properties to potential buyers, you’ll need to build a relationship with a real estate agent. You’ll also want to have a pool of potential buyers, interested investors ready with cash offers eager to leap on the opportunity you have for them. These contacts will enable you to sell your property quickly and profitably.
- Research the market: Finding houses to buy that you can quickly sell for a profit requires some homework. Motivated sellers can be located through free online real estate sites, local advertising, real estate agents, and real estate auctions. Make sure you’re buying at a low enough price point to make a profit when you sell. Find properties that appeal to buyers intending to fix and flip for a profit.
- Secure financing: When it comes to virtual wholesaling, traditional lending institutions can move too slowly. Hard money loans, or loans secured by real property, are faster since they’re backed with collateral.
Online Wholesaling: Pros and Cons
Virtual wholesaling, or online wholesaling as it’s also referred to, can be a fun and profitable business. But as in any business, there are pros and cons to be aware of.
- Work from anywhere. You’re not tethered to an office. If you have working internet, you can run your business. This also keeps your overhead low.
- Create your own schedule. Work when it suits you. With online wholesaling, you decide how much and when to work.
- You don’t need a ton of experience to get into online wholesaling. Learn from a mentor and other wholesalers.
- Since laws relating to virtual wholesaling vary from state to state, it’s necessary to do your homework, learning the laws and regulations for your area.
- Your income is by no means guaranteed. Nor will you have the benefits that come with some traditional employment like health insurance or paid vacation time.
- Increased competition can be a hidden challenge in this line of work. You’ll need support to be on top of your game.
With HomeVestors®’ virtual platform for selling houses, DealVestors® you’ll have the tools you need to grow your business.
Virtual Wholesaling Real Estate’s Timeline to Profitability
The real estate market can rise and fall depending on numerous factors. Your timeline to profitability as an online wholesaler relies to some degree on these factors. Supply and demand, demographics, market prices, and mortgage interest rates all affect the real estate business.
It’s important to do your research, understand the economic environment you’re working in, set realistic goals, be persistent, rely on your network, and create a plan. Building strong relationships, researching markets, and learning the laws and regulations in your area can take time and require discipline and focus. There’s no guarantee with any business that you’ll make money but with virtual wholesaling there’s the opportunity to make the most of your business if you proceed strategically.
Start with HomeVestors®’ Virtual Platform for Selling Houses
One of the best ways to get started with virtual wholesaling real estate is by becoming a HomeVestors franchisee. You can learn everything you need to know (get a preview in Wholesaling Houses 101) and have access to the online listing website DealVestors®, a network of national investor buyers looking to buy and sell property.
DealVestors® is our streamlined and user-friendly listing portal that lets you wholesale your properties to real estate investors nationwide. DealVestors® locates residential properties that can be rehabbed to sell or rent, a service exclusive to real estate investors. Through this virtual platform, you’ll be connected to other real estate investors looking for properties ready for rehab and priced below market.
With DealVestors® laying the groundwork, it’s the smarter, easier, faster way to find great deals on investment properties. To learn more about virtual wholesaling real estate with HomeVestors®, fill out and submit a franchise form.