So I've been studying a lot about remote/virtual wholesaling. I have also seen a lot of negative backlash about it. In my opinion remote wholesaling or lease pirchase options abroad makes sense.
I mean think about it. You can assemble a few people on the ground in your chosen areas. You can market from home and hire a virtual assistant.
Yes, you would have to study different markets a lot more, but with Google, nowadays it is a lot easier.
K, now that I convinced myself. What do you all think? Any advice? Pointers? Thank you.
I'm very interested in the advice on this topic. Thanks @Angie Lavell
Yes, it's a great option that many people do. We also do remote rehabs which I know many investors seem negative about. The less time I spend going to a property, and instead have a team do it, the better. Of course, that means that you have to have a team in place and put in the effort to know the market you are going into, know the risks, etc.
Who do you want on a team to do remote wholesaling?
Agent(s) - To find the deals and put together offers (if MLS)
Inspector(s) - To inspect property to help with rehab cost.
Local attorney - Know state regulations and help with closing.
A lot depends on how you are going to do your marketing. Yellow letter, post cards, MLS, etc. I tend to lean towards giving a criteria to someone else, have them make multiple offers, I we look at the ones that go through.
Thank you Brian Fouts. I have quite a few questions to ask you. First, do you suggest starting remote wholesaling without closing any deals locally first?
Second, how did you find bird dogs, agents, and title companies all via phone? How much did you pay them? How do you gain trust over the phone? Im asking because I definitely want to start my own? Thank you--
Great Topic ! Want to virtual wholesale myself.
In My Humble Opinion:
Remote wholesaling is possible and a lot easier to do than I thought.
Boots on the ground: use wegolook.com (about $100) to get pics of the property and make sure the property actually exists. After you've done a few deals in your target area, hire a guy or realtor to take your pics for you.
Contract Signing: they can easily be signed with e-sign services (like cudasign) directly from your email to the sellers. Or you can just mail it out and they mail it back.
Finding buyers: Find the top 2-3 wholesalers in your area. I recommend using someone from BP since 1) they won't want to damage their reputation here on the site and 2) they know how this wholesaling thing goes. Offer them a piece of the pie to find you a buyer. For example, if the wholesale fee is $10k, say hey I have a property for you that will net you $2500 or $5k (depends on how much you spent on marketing). Sign a contract with the wholesaler(s). First one to bring a buyer wins.
Your jv wholesaler will schedule the viewings with their buyers and and show the property for you. Your jv wholesaler knows the best title company to use in the area. Don't worry they can't "steal" the property if you have a legit contract with the seller and enough time to shop it and close it (45 days is all my contracts).
I know all this because I did a deal here in Florida recently that was about 30 mins away from me, my seller mailed me their signed contract. I drove to get the photos (but easily could've hired the service wegolook), then I found a jv partner who went with her buyer to the property (I wasn't there I simply scheduled it with my seller over the phone and they showed up) and we had it under contract with my jv's buyer and were ready to start closing process in 24 hours. I only went to the property once and i didn't even NEED to. Now I plan on using her to sell ALL my properties.
All I need is my phone and my laptop. It can be done and it can be done effing easily.
So, hypothetical situation:
If I have the money, it would make sense to hit some of the hot areas country wide, some Portland, OR, Seattle, WA, Cali, Huston, TX, and go crazy.
Then when someone calls and is motivated to sell, jump into action and get your agents, inspectors, contractor, PM, JVs, wholesalers/buyers, etc.
Reason of the order of marketing first then searching is that contrary to the Guru, the deal draws the team, and a team too soon, with no work, is like harvesting your crops without planting the seeds.
So know the area to hit, but don't hold back marketing for planning and prepping.
Does that ring true to anyone?
I do virtual wholesaling now! It wouldn't be possible without the help of a virtual assistant who does bird dogging, data entry/research, lead generation, and prospecting for me. They qualify the leads (I tackle mostly FSBOs) and then manage the majority of the transaction! I write tons of tips on my blog on how helpful they are! Good luck!!
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