Quote from @Don Konipol:
Quote from @Logan Stamps:
Hello BiggerPockets Community,
I hope this message finds you well. My name is Logan Stamps, and I am new to the world of real estate investing, specifically virtual wholesaling. I've been immersing myself in various resources to understand the fundamentals and best practices.
One area where I find myself seeking guidance is in building a network remotely. Establishing connections with motivated sellers, reliable buyers, and industry professionals is crucial for success in this field. Given that I'm operating from Bend, OR, I would greatly appreciate any advice or strategies you might have on identifying and connecting with motivated sellers in target markets, building a list of cash buyers interested in virtual wholesale deals, utilizing digital tools and platforms to facilitate virtual transactions, and navigating legal considerations and ensuring compliance across different states.
Additionally, if there are any common pitfalls that beginners should be aware of, I would be grateful for your insights.
Thank you for taking the time to read my post. I look forward to learning from your experiences and becoming an active member of this community.
Best regards,
Logan S. Stamps
Logan you’re NOT going to want to hear this -
wholesaling real properties is like any other business - it requires knowledge and CAPITAL. The promotional “come ons” you find on YouTube, books, so called “testimonials” etc just plain isn’t true.
The chance of an inexperienced flipper with little or no capital successfully completing a wholesale deal or deals is about 2%. The chance of having earned more than minimum wage is about .001%. Worse, “wholesaling” teaches little about INVESTING, and what it does teach is mostly incorrect.
I know more than a few wholesalers who run successful businesses. The MINIMUM any of them spent monthly on marketing is $5,000, with the average being over $10,000. They additionally employ virtual assistants, cold callers, negotiators, and inspectors.
Unlike 20 years ago the part time wholesaler doing “driving for dollars” can no longer be successful. There are too many knowledgeable and well capitalized competitors; sellers have access to timely and increasingly accurate valuations, discount brokers exist for sellers with lower price properties, and “ibuyers’ make immediate offers at higher than wholesale pricing.
More than anything else wholesaling is a commission sales job. Since in many jurisdictions you are now required to hold a real estate agent/broker license to wholesale, why not just work as a licensed real estate agent if this is what you want to do?
Don does have some good points.
While wholesaling is more of a risk-free avenue to the traditional buy and hold or fix and flip (which both are costly up front, with a risk of potentially not selling, refi, or having a tenant in place), there are some costs that are associated with virtual wholesaling. How are you going to get leads? PPC, you need $5k a month or so to make that work. PPL has costs associated with that. Cold calling, you will need to dial thousands of numbers and where are you going to get the numbers... thats another cost for skiptracing (.03 a record and I can send you a link). Also your software, you will need some sort of software like propstream or batchleads, and also a CRM to keep all your info. You will need to find and have attorneys who are willing to work with you. Mobile notaries are also a cost that you will need to consider.
Not to scare you off, this business is great but it does take lots and lots of work, and there are costs associated with it like running any business.
