New to Wholesaling - Virtual Wholesaling

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New to Wholesaling - Virtual Wholesaling

Domonique James
Charlotte, NC · Member since 2018 · 8 posts · 2 votes

Hello Community,

I am new to Wholesaling and are trying to grasps the concepts and strategies of it. What i know thus far is:

1. Find Motivated Sellers & Buyers

2. Marketing is important. "get the phone ringing" - yellow letters, bandit sign, postcards, phone calls, etc.

3. Know your market - search for low income areas, and search for distressed homes, with possible tax liens/deeds, probate lists, pre-foreclosures, foreclosures, etc. Find Potential fixer uppers to then turn a profit for the rehabber. 

Then there is selling out of area, this is the part i need some understanding on, if i am not even in the state how would i be able to view the home and determine the amount of repair, or would that even matter per say as there seems to be a lot of virtual wholesaling going on. Would it behoove to physically see every home i wholesale? If someone who is experienced or knowledgeable in wholesaling in different states would render me some advice on how to do so and do so well it would be appreciated.

  • Then there is documentation - Purchase of Sale Agreements/ Assignment Contracts does anyone have a sample or can point me in the direction of good samples that protect you as the wholesaler when dealing with the seller and then assigning to the buyer. I have seen a couple of them online that you could of course tweek, I but I wanted to see one that a practicing wholesaler has actually used successfully and the verbiage in which it contains.

As I have said I am new to this and are in the Charlotte Area in NC and are looking to meet up and network with like minded individuals to learn and grow in the business. I'm okay with co-wholesaling as well to get started if anyone is interested. I don't know it all but i'm willing to learn. So I appreciate everyone advice or any tips for starting this business in the right direction. 

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Jamaal Johnson
San Antonio, TX · Member since 2017 · 49 posts · 27 votes
8y

Virtual wholesaling (if done with a team in place) that being, an investor friendly realtor who can link you up with a contractor to give a rough breakdown on the level of rehab needed.. can be very lucrative. The fact that you aren't there to view the property is simply just an obstacle that can be easily jumped over. One thing that is beautiful about real estate is not only can you utilize other people's money, but also other people's time (in this case the realtor or a bird dog). Just have someone do a walk through video of the property and make them hit all the major areas you need to view to make a decision.. have your realtor run comps so you know what you are working with and in return when you lock up contract make it to where end buyer must close with the realtor who is helping you through the process. Rinse and repeat. 

Let me know if this makes sense!

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  • David Mohrmann
    Real Estate Broker · Raleigh, NC · Member since 2016 · 59 posts · 10 votes
    8y

    Hi Domonique 

    I attended a REIA seminar on wholesaling a couple weeks back. This presenter was not a "guru" as many others on instagram and facebook claim, but she definitely had her own materials that she ended up endorsing at the end of the day.

    While she shared with us many great tips and hints on the wholesaling process, without giving away the barn, she vehemently discouraged virtual wholesaling, for many of its obvious reasons, mainly that you are not physically inspecting the home. While you might not know the costs of a rehab, any contractor who is worth their weight in salt, would gladly give you a bid, if you just ask. 

    I'm starting my wholesale business as soon as I can, and you definitely have the right ideas and direction, but as far as advice on the virtual aspect, don't do it.

    Also, I'm in NC too, so if you want to link up, reach out to me. 

    0Reply
  • Jamaal Johnson
    San Antonio, TX · Member since 2017 · 49 posts · 27 votes
    8y

    Virtual wholesaling (if done with a team in place) that being, an investor friendly realtor who can link you up with a contractor to give a rough breakdown on the level of rehab needed.. can be very lucrative. The fact that you aren't there to view the property is simply just an obstacle that can be easily jumped over. One thing that is beautiful about real estate is not only can you utilize other people's money, but also other people's time (in this case the realtor or a bird dog). Just have someone do a walk through video of the property and make them hit all the major areas you need to view to make a decision.. have your realtor run comps so you know what you are working with and in return when you lock up contract make it to where end buyer must close with the realtor who is helping you through the process. Rinse and repeat. 

    Let me know if this makes sense!

    6Reply
  • T B Williams
    Rental Property Investor · Member since 2018 · 20 posts · 5 votes
    7y

    @Domonique James Dominique it is about a year later how has things turned out for you? Did you get your first wholesale deal yet?

    0Reply
  • Kyler B.
    Member since 2020 · 38 posts · 9 votes
    3y

    Since this original post, virtual wholesaling has become big business. About 50% of the wholesalers I know, focus on virtual wholesaling. If you don't want to spend a painful amount of hours looking for leads via virtual wholesaling - try using Propspector.ai  

    They built an AI D4D bot that can review the exterior of thousands of properties in minutes, and provide a distress score on those properties. 

    0Reply
  • Alyssa MarquezBusiness Member
    Real Estate Agent · San Antonio TX / Fort Lauderdale, FL · Member since 2023 · 114 posts · 25 votes
    7h

    This is a great questions - it depends on how many wholesaling deals you want to close... If you are brand new, I would suggest that you master one market first before attempting to wholesale virtually across multiple states. You don't necessarily need to be able to attend the property, but you do need a good "boots on the ground" team – a investor friendly agent, a contractor, a photographer, or a local partner that can verify condition of the property and help you estimate repairs.

    Be cautious pulling assignment contracts from the internet as wholesaling laws and disclosures vary from state to state.

    A real estate attorney local to you or an investor friendly title/closing company are a much better resource for the actual documents you will need to close the deal.

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