virtual wholesaling

19 Replies

If I were to do deals online, how would the signing of contacts take place if I found a good deal online? If that makes sense

Originally posted by @Jonathan Stanley :

If I were to do deals online, how would the signing of contacts take place if I found a good deal online? If that makes sense

How would you know it's a good deal if you haven't viewed the inside of the property and didn't have strong knowledge of the neighborhood, the buyer demographic, etc?

You can always just sign the docs electronically, but the bigger issue is that trying to buy houses sight-unseen if you're inexperienced is going to be a waste of time for everyone.

fax lines are really inexpensive. Cris Chico gives a pretty good explanation of how he determines values in a Sean Terry podcast, #64 I think 

Originally posted by @Jonathan Stanley :

If I were to do deals online, how would the signing of contacts take place if I found a good deal online? If that makes sense

The contract part is the easiest part of any transaction. What I would caution you with is virtual deals period. It's not for everyone. You have to have a trusted resources in that area that will do the homework for you. Demographics, economic trending, CMA'S etc. And because people my know you are an out of towner doing business, they may feel you don't know the area etc, so they can feed you anything and you will take it...even realtors etc.

Now thay I said that....

My 6 virtual deals I needed the following:

Trusted Bird dog* taking pics etc.

Realtor

Contractors

Title Co

Real estate attorney

And a plane ticket...

Etc.

Because laws are different in every state, things are not the same as it may be where I live in Maryland. For instance, in NC where I wholsaled 2 properties...there is no title co, they use Attorneys to close. So my suggestion is understand the way that state does business in there area you are virtual wholesaling.

And I have actually flown to see a few of my deals first myself to get my sea legs with virtual wholesaling, but only after the deal was pre qualified by me first.

Hope this helps your journey...

I like dotloop.com has pretty much every real estate form you would need in their system so that the entire transaction can be paperless.

I used a mobile real estate closing notary recently on a property just 30 mins away from me to experiment on creating a system for out of state/virtual wholesaling. I chose a real estate one who had experience with closings so that I know for a fact that he understands real estate and will be able to explain some objections that a seller may have at the signing table. Paid him $75 and he took 40 pictures along with fax me the signed copy of the purchase contract. Some sellers need to see a human to believe that you are legit. I will be using him again.

Hey Jonathan. A service that it is great to use for virtual real estate investing is Your Boots On The Ground. J Scott is absolutely right about the significance of knowing the actual condition of a long distance property. Buying a property sight- unseen can be a huge risk but with Your Boots On The Ground we take care of everything from simple yet crucial info like photos & videos to of the inside and outside of a property to mobilizing a real estate agent, real estate investor friendly title company to contractor repair checkups. Troy W is also very much on point about having a trusted resource that will tell the truth about a property & area.  I've been there and it can be pretty rough and very expensive. Hopefully we can help. If any questions feel free to message me anytime. 

What you should be asking is how to find good "boots on the ground" to work with. Like any partnership you need to have something of value to bring to the table. Are you... Funding marketing? Closing deals you can't find a buyer for? Handling negotiations remotely? I'd set up some keyword searches and look for other investors in your target areas who are motivated/just starting out. 

If I ever move to "virtual wholesaling" I will move to that area for 6 months to a year so I understand the neighborhoods, typical repairs, going rates, etc. 

Just looking at a map and thinking... Hmmmm Jacksonville FL sounds nice... Won't work. 

Best of luck friend!

Medium head icon colorRyan Dossey, Call Porter | http://Callporter.com

On-line where? What is it you are wanting to do exactly from a business perspective?

@Ana G. , with your experience, I would have a question.  I see so many wholesalers promising a cash offer within 24 hours from submitting your information on our online form.  I'm not looking into doing virtual wholesaling as I'm staying within my local area.  But, I am working on our website to capture leads.  And, I want to make sure I'm putting down a realistic timeline that we can abide to.  When all these people are saying cash offers within 24 hours, does that mean you're going on on-site to see the inside of the property and everything within that 24 hours?  I don't see how I can give a cash offer without knowing the condition of the property.  One guy on here said it's just about the numbers and what the seller is willing to sell the property for when I asked this in another thread.  I get it's a numbers game....but if the house is in really poor condition (i.e. foundation issues, etc), rehab will cost a lot more and maybe then the numbers won't add up right.  But, you wouldn't know this until you get the walk-through.  So, is 24 hours really realistic?  Thanks!

Originally posted by :

But, you wouldn't know this until you get the walk-through.  So, is 24 hours really realistic?  Thanks!

Too many wholesalers will throw out a number just to get an agreement, and then do a walk-through and revise the number based on the walk-through (revise lower, not higher).  Personally, I consider this to be very bad business practice...

So, @J Scott , you wait until you do the walk-through then?  So, what kind of timeline do you advertise?

Originally posted by @Kimberly Farrally :

So, @J Scott, you wait until you do the walk-through then?  So, what kind of timeline do you advertise?

I don't advertise any timeline and I never give offers until I've seen a property.  I've only purchased about 200 properties, so I'm not yet good enough to be able to estimate rehab costs without actually seeing the property...and anyone who tells you they can is lying to you...

After I perform my due diligence on a property, I have been able to use the services from DocuSign and CudaSign to get seller signatures on purchase agreements.

Originally posted by @Kimberly Farrally :

@Ana G., with your experience, I would have a question.  I see so many wholesalers promising a cash offer within 24 hours from submitting your information on our online form.  I'm not looking into doing virtual wholesaling as I'm staying within my local area.  But, I am working on our website to capture leads.  And, I want to make sure I'm putting down a realistic timeline that we can abide to.  When all these people are saying cash offers within 24 hours, does that mean you're going on on-site to see the inside of the property and everything within that 24 hours?  I don't see how I can give a cash offer without knowing the condition of the property.  One guy on here said it's just about the numbers and what the seller is willing to sell the property for when I asked this in another thread.  I get it's a numbers game....but if the house is in really poor condition (i.e. foundation issues, etc), rehab will cost a lot more and maybe then the numbers won't add up right.  But, you wouldn't know this until you get the walk-through.  So, is 24 hours really realistic?  Thanks!

 You can say 24-48 hours but it doesn't usually take me more than a few hours to calculate an offer. Since it is a numbers game, you need to make sure you're not spending all your time viewing a ton of properties you won't end up buying so I personally like to ask detailed questions about the condition "what kind of repairs does the property need that a future lender or buyer will ask to be fixed?" and then if you agree on the numbers and find that it's not what the seller claimed, you adjust the contract because at the end of the day you're dealing with a motivated seller. I almost never had to do that though because I'm pretty conservative on my numbers.

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