Closing On Virtual Wholesaling Deals
I recently just purchased a course on virtual wholesaling and it doesn't cover how to close a deal without seeing the seller and the buyer.
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Sounds like your first lesson in RE wasn't a good experience, sorry to hear that. Hope you'll really study the basics of RE and here on BP before spending money again. Good luck.
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Learn about your local market, understand contracts, meet local investors at REI meetings and learn how to be a local wholesaler, before you pursue the fantasy of virtual wholesaling.
I also took a course on virtual wholesaling. Probably the best advice is to not do virtual wholesaling until you get close a few local deals under your belt. If you still want to try it I would suggest faxing or e-mailing the docs back and forth.
Did the course have a refund policy or money back guarantee? Sounds like they didn't deliver on their promises.
You can exchange documents via email,fax mail when closing a deal. These are pretty commonplace these days.
This is a great example of why so many here are anti Guru. You bought a course on virtual wholesaling and it doesn't give you enough information to get past step 2. That is sad.
To answer your question, get agreement by phone. Write up the agreed to terms on a contract and mail, email, fax or express overnight delivery to the seller with instructions to sign. When it is signed by both you and the buyer send the earnest money deposit.
Once you have it under contract send your assignment agreement to the buyer in the same way and have them send you their EMD for you to keep. Find out who the end buyer will use for closing and send them copies of the documents Good Luck - Ned
Since I'm located in Chicago I'll probably get a few deals under my belt then start virtually wholesaling. But thanks for the info. I've learned more off youtube and this site than the course i purchased.
To answer your question, get agreement by phone. Write up the agreed to terms on a contract and mail, email, fax or express overnight delivery to the seller with instructions to sign.
Or you can have it sent via messenger :)
Andre Lindsey You don't necessarily have to start local with your deals. I have closed multiple deals virtually and have never been to a closing table in person.
To prepare for your closing, you may first have your buyer and seller sign the appropriate docs electronically. Send them a PDF via email or fax them. Once you have these docs back, send all to an attorney and title company that you want to handle your closing.
I'm sure there is a way to do virtual closings without an attorney representing you involved, but I prefer/suggest the involvement for the peace of mind and happily foot their fee. Be sure there is a large enough profit spread to foot the bill if you choose this route.
An attorney will be able to tell you exactly what pieces of documentation will be required for a closing and they'll correspond with all parties involved and schedule the (double) closing.
Justin, how did you check out these properties? Did you have an inspection done? Do you have a team or someone to assist you in these areas? Are you mostly wholesaling in specific markets and always looking for details in those markets or are you just looking for deals anywhere in the country?
@Justin McClelland Wouldn't it be easier if I did an assignment deal to avoid a double close ?
Andre,if it's a REO you would need to do a double close because bank owned properties aren't assignable.
I try to avoid REO properties and target the absentee owners.
Those can be assignable.
I'm kind of curious as to why everyone is recommending to start locally...I can see it for familiarity purposes but if you plan on wholesaling in other markets (I think a wholesaler would be limiting themselves if they didn't) then why does it matter WHEN you start? This is my understanding:
Negotiations between you and the seller are done over the phone. You ask the seller detailed questions about the property and ask if they happen to have any pictures (they usually say "well...ummm...no, but I'm sure I can take some, what would you like to see?). Make sure they take pics of anything significant that they describe. Once an agreement is made, the contract can be either mailed / emailed / faxed to seller with instructions on how to review and sign...leave # in case they have questions. Once you get the contract back, market for a buyer. Once you find a buyer, do the same paperwork process with him/her. Find out which company they're using to close and send all documents there...money can very easily be exchanged from afar also.
Am I missing something? I've actually done this locally. Never met seller or buyer in person but we communicated very well. I'm just curious about other wholesaler's views on what the hiccups of this process are and can be.
Originally posted by @Nicole Starnes:
I'm kind of curious as to why everyone is recommending to start locally...I can see it for familiarity purposes but if you plan on wholesaling in other markets (I think a wholesaler would be limiting themselves if they didn't) then why does it matter WHEN you start? This is my understanding:
Negotiations between you and the seller are done over the phone. You ask the seller detailed questions about the property and ask if they happen to have any pictures (they usually say "well...ummm...no, but I'm sure I can take some, what would you like to see?). Make sure they take pics of anything significant that they describe. Once an agreement is made, the contract can be either mailed / emailed / faxed to seller with instructions on how to review and sign...leave # in case they have questions. Once you get the contract back, market for a buyer. Once you find a buyer, do the same paperwork process with him/her. Find out which company they're using to close and send all documents there...money can very easily be exchanged from afar also.
Am I missing something? I've actually done this locally. Never met seller or buyer in person but we communicated very well. I'm just curious about other wholesaler's views on what the hiccups of this process are and can be.
Have you ever closed any deals locally where you saw the property and actually shook hands with the seller? If so, I'm sure you can see the benefit to this over doing it all virtually.
Originally posted by @Andre Lindsey:
@Justin McClelland Wouldn't it be easier if I did an assignment deal to avoid a double close ?
The downside to doing an assignment is that your seller will see your profit and might not trust you. Especially if the only interchanges you've had with them have been virtual and they don't trust you. The bonus to me selling in my local market is that when I meet the seller and listen to them as we ealk the property together, they begin to trust me and they WANT to sell to me over those virtual hoo-has.
Originally posted by @Jade Davis:
Originally posted by @Nicole Starnes:I'm kind of curious as to why everyone is recommending to start locally...I can see it for familiarity purposes but if you plan on wholesaling in other markets (I think a wholesaler would be limiting themselves if they didn't) then why does it matter WHEN you start? This is my understanding:
Negotiations between you and the seller are done over the phone. You ask the seller detailed questions about the property and ask if they happen to have any pictures (they usually say "well...ummm...no, but I'm sure I can take some, what would you like to see?). Make sure they take pics of anything significant that they describe. Once an agreement is made, the contract can be either mailed / emailed / faxed to seller with instructions on how to review and sign...leave # in case they have questions. Once you get the contract back, market for a buyer. Once you find a buyer, do the same paperwork process with him/her. Find out which company they're using to close and send all documents there...money can very easily be exchanged from afar also.
Am I missing something? I've actually done this locally. Never met seller or buyer in person but we communicated very well. I'm just curious about other wholesaler's views on what the hiccups of this process are and can be.
Have you ever closed any deals locally where you saw the property and actually shook hands with the seller? If so, I'm sure you can see the benefit to this over doing it all virtually.
Lol, I have no idea how that got sent with a connect request @Jade Davis.
I have. I have met a seller. We're actually friends from working with his property for a while.
I was speaking on the possibility of doing deals virtually. I totally agree that seeing the seller in person is valuable and they feel more comfortable. When that's not possible, as in virtual wholesale deals, there's ways to connect otherwise, though.