Using Virtual Real Estate Wholesaling
When certain trends start to pop up in your market, you could turn to virtual wholesaling. These trends include:
Lower response rates for direct mail marketing
Sellers say they are getting too many marketing offers
Sellers don't seem as motivated as they were last year
These trends often point to a seller's market, which means deal flow will start to decrease. As a wholesaler, this means your marketing budget will go up and your ROI will go down. When this happens, it may be time to pivot into virtual wholesaling.
What is Virtual Wholesaling?
Virtual wholesaling is similar to traditional wholesaling, but allows you to enter into a different markets, remotely. It will include many moving pieces to successfully facilitate the transaction. If you have great conversational skills, excellent organizational skills and the ability to network, you can use virtual wholesaling to your benefit.
Building a Virtual Wholesaling Team
Before you even think about handling a transaction, you need to build your virtual wholesaling team. This team will need to include:
A Title Company
An Attorney
Wholesale Partners
In some cases, your local title company will work great, if they are a national company. However, if they don't handle title on the national level, you will may need to find a title company that does.
An attorney is the next member of your team you will need to find. Getting a local attorney, in the market you're working in, requires good recommendations, which may come from the title agent or even the real estate agent in the local market. Make sure to compare a few options before adding an attorney to your team.
Along with your title company and attorney, a few wholesaling partners can be helpful. Having local JV partners to help you will make selling in a new market much easier. Make sure you put a solid agreement in writing about how you will split the profits.
Enter a New Market with Virtual Wholesaling
Real estate has historically been up and down, favors the buyer one year and the seller the next. As a wholesaler, you have to stay on top of your market, but you don't have to be limited to just your local real estate market.
With virtual wholesaling, you have the ability to enter into any real estate market you want. All you have to do is build your virtual wholesaling team first. Not only will you have the ability to wholesale in a new market, but you may also be able to increase your rental portfolio and even start flipping properties.
Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.