Investor · Denver · Member since 2016 · 38 posts · 17 votes
Hi BP!!! I'm currently in the process of starting my virtual wholesaling business and would Love some direction. I'd like to find out from other experienced virtual wholesalers exactly how they went about the process of setting up their business. Also I'd like to know what tools, documents, Guru's, websites etc etc you feel benefited your business the most. Thanks Guys!!
Wholesaler · Scottsdale, AZ · Member since 2013 · 413 posts · 72 votes
8y
Hey @Richard D. love to help out. we are running our wholesaling business operations using a team of virtual assistants so you can say, technically, we have a virtual wholesaling business! We hired a team and they have helped us tremendously over the past couple of years. Can't imagine running the business without them. They helped us setup our systems and automation, facilitate transaction coordination, lead gen, and marketing. Send me a message if you need help.
Investor · Austin, TX · Member since 2019 · 229 posts · 229 votes
6y
@Richard Deberry
Welcome. First thing I recommend is building your cash buyers list in your chosen market. It it’s better to have a list of 3-5 buyers and have their criteria close by. Ask them questions about what they like to buy and where, especially since you aren’t in the market yourself to get a lay of the land. Once you have that criteria then you can implement whatever system you have for pulling leads, to target the properties that fit the criteria of those buyers. You can find buyers in FB Groups for real estate. Every buyer that’s bought from me, I found on a FB group.
You also need to find out if your chosen market uses title companies or closing attorneys. Once you find this out, google companies in your chosen market. Make a list of them then call them, until you have 2-3 of them on your list. Best to have options. You're going to call them and ask if they can handle assignment of contract & abc transactions. If they say yes, they go on the list. If they say no or sound confused by what you're asking, end the call. You can also ask for a copy of their FSBO packet and receive a copy of the standard purchase agreement in that market.
Then start looking for properties to speak to the owner until you get a contract to sell.
Investor · Austin, TX · Member since 2019 · 229 posts · 229 votes
6y
@Richard Deberry build solid relationships with your buyers. Talk to them about repairs and the usual costs of x, y & z in that area. Your best asset is a strong relationship with your buyers. One day they won’t want to fix and flip anymore and they turn into private lenders. 😉
Welcome. First thing I recommend is building your cash buyers list in your chosen market. It it’s better to have a list of 3-5 buyers and have their criteria close by. Ask them questions about what they like to buy and where, especially since you aren’t in the market yourself to get a lay of the land. Once you have that criteria then you can implement whatever system you have for pulling leads, to target the properties that fit the criteria of those buyers. You can find buyers in FB Groups for real estate. Every buyer that’s bought from me, I found on a FB group.
You also need to find out if your chosen market uses title companies or closing attorneys. Once you find this out, google companies in your chosen market. Make a list of them then call them, until you have 2-3 of them on your list. Best to have options. You're going to call them and ask if they can handle assignment of contract & abc transactions. If they say yes, they go on the list. If they say no or sound confused by what you're asking, end the call. You can also ask for a copy of their FSBO packet and receive a copy of the standard purchase agreement in that market.
Then start looking for properties to speak to the owner until you get a contract to sell.
Thank you so much for all that info!! Be sure to check out the rest of this thread as well!
@Richard D. I learned everything I needed to start my virtual operation from Max Maxwell & Antoine Campbell! They gave tons of free value to get everything I needed to get started. Like @Isaac Moore I leveraged VA's to handle most of my day to day operations.
1. My target markets were where most of the turnkey providers were. I figured they had to do tons of market research to decided to plant boots in a market so it would be a good place for me to start.
2. After I picked my target market I used Buyers on Fire to determine where the hot zip codes were and used Propstream to pull my lists.
3. Establishing boots on the ground was next. I went into the local wholesale facebook groups to find investor friendly realtors or local wholesalers who could walk the properties for me, take pictures and be my eyes and ears in that target market. If they were able to bring a buyer we worked out a split that worked for both of us.
4. Once boots on the ground was established I went back on the wholesale facebook groups and asked for investor friendly title companies in my market and got the answer within minutes
5. When I had a property under contract, my boots on the ground usually was able to get the deal sold for me. Definitely wasn't trying to be greedy and had no problem splitting a check knowing that we go further together in this game.
This isn't all the details but a summary to give you an idea of what you'll need. Hope this helps my man!
Super solid info!! Hope this helps the newcomers!! Be blessed!!
Investor · Toledo, OH · Member since 2012 · 292 posts · 34 votes
6y
Great info guys. I wanted to ask about repair estimates. Do you pay an agent, appraiser, or partner wholesaler to walk every property and build your estimates, or do you ballpark them?
Aaron Mazzrillo (who has done a BP podcast) ballparks all of his at $20/sf estimated repairs. He said in So Cal it's done very well for him despite being so rudimentary.
I've also heard you can just ask the seller for what needs fixing and ballpark the rehab as light/medium/heavy. Paint and sweep is around $3,000 to 5,000 in repairs, a moderate rehab is 10 to 15k, and a big one is 25-$40k. Personally I like this less than Aarons because some rehabs are way more than even 40k.
Curious what everyone else is doing when they don't or can't walk the homes themselves.