QUOTE OF THE WEEK
“You were born an original. Don’t die a copy.”
– John Mason –
There’s been a lot of talk lately on the real estate forums about virtual wholesaling. I’m sure it’s because of all that’s been going on in the country this year and people just not feeling comfortable about getting out. Even in local markets, many realtors and investors have resorted to virtual tours of houses they’re selling. So, since a lot of our readers are wholesalers or are interested in wholesaling, I wanted to take a look at how it’s done virtually in case any of you are thinking about doing it.
Years ago, I used to write a motivational column for a local newspaper in the city I was living in at that time, (way before I got into real estate) which I guess was the precursor to the “Inspiration Corner” that I write now. Anyway, I was recently going over some of the topics I wrote about then and I realized how relevant they still are even now. So, I’m going to share one of them with you this week called, “The Power To Choose”.
And lastly, as always, please check out “Suggested Materials” if you want more information on the feature story and please support our Partners.
Hope you enjoy the read!
Lena W. Claybon
With the onslaught of COVID19, Virtual Wholesaling is becoming more and morepopular as a go-to strategy for those who already wholesale and for those just getting into the game. But just like wholesaling, you have to know what you’re doing for it to be effective.
I, personally, wouldn’t recommend it to novice investors just because of the sheer amount of things you need to be able to do to analyze a deal from a distance such as repair costs, knowing the “real deal” about a neighborhood as oppose to what online info says, dealing with difficult sellers, buyers, etc. If you don’t even know how to do those things well locally, the chances of being able to do them successfully in another market is slim.
With that said, virtual wholesaling can be very lucrative if done correctly. I’m going to give you a few pointers to get you started but before we get to that, let’s talk about what it is first.
What is Virtual Wholesaling?
Virtual Wholesaling is built on the same basic concept as traditional wholesaling, but instead of looking for distressed properties in your local real estate market to put under contract, you chose another market to wholesale in whether it’s because it’s a larger market or you think it has less competition, whatever the reason, you decide you’d like to try it out.
How far away it is isn’t a factor with virtual wholesaling because, like the name suggests, you’ll be using your computer, cell phone, and online systems to virtually wholesale in whichever market you choose.
So, how do you get started virtually wholesaling? I think it’s always best to start with a market you know – maybe, you lived there before or you have relatives there and you’ve visited. But if you chose a market you know nothing about, my first suggestion is of paramount importance.
Steps To Virtual Wholesaling
1) Have a “Birddog” (a.k.a. “Boots on the ground”) – A Birddog is someone who will be your “point person” for that market. Once you find a property, that person can meet with the Seller and take pictures of the property for you. Make sure to choose someone who also knows the market well and can tell you which neighborhoods are good and which to avoid. You can advertise on Craigslist for Birddogs, or in Facebook groups, or even at a local college. You can offer to pay them a little to take the pictures and/or make it worth their while by guaranteeing them $1000 bucks for doing the legwork if you sell the house.
2) Find A Property – Just like regular wholesaling, nothing can happen until you find a property. Since you can’t use local means like “driving for dollars” or bandit signs, the best way to do this virtually is using property-finding software like Propstream or using a listbroker like Listsource. You can also scour sites like Zillow, For Sale By Owner, etc. for “distressed” homes online.
3) Analyze The Property – Obviously, once you find a property you’re interested in, you need to do a quick analysis on price vs. comps in area. Find out as much as you can about the property before contacting owner. Once you determine that it’s a good property to pursue, move on to step 4.
4) Contact Owner – When you Contact Owner, get additional info such as repairs needed, bottom line price, and other qualifying questions you’d normally ask. If it’s still a good deal to pursue, set appointment for your “Associate” (Birddog) to view home and take pictures.
5) Make Offer & Send Contract – Once you receive pics from Birddog and you complete your analysis, call Owner to offer/negotiate price. If offer is accepted, move on to step 6.
6) Find Buyer – You can use the same methods to find buyers as you did to find properties and that’s through real estate software or datafeeds.
7) Assign Contract – Once you find a local buyer, you can assign the contract and either go through his/her title company or attorney to close deal or you can find one on your own.
8) GET PAID – At close, have your money wired directly to you by title company or attorney. You can then pay your hard-working Birddog and rinse and repeat!
For additional info on this, checkout “Suggested Materials”.
Did you know that at any time, no matter where you are in life, no matter how long you have been a certain way, you can choose to become the person you’ve always wanted to be. You can decide, at any time, to make a change and begin your journey to a happier, more fulfilled you.
First and foremost, you must understand that you have been given a gift that no other living creature possesses. You have been given the power to choose.
Just think about your life for a moment. How did you end up where you are right now at this particular time in your life? The answer is through choices. Your life, as it is right now, is a direct result of the choices you have made up until this point. And your life a year from now, five years from now, or even ten, will be a direct result of choices you make from now until then. That’s why you can decide at any time how you want your life to be and begin working toward your desired goal.
The winners in life are keenly aware of their power to choose. They choose success over failure. They choose happiness over despair. They choose to work toward their goals over being idle because they know that by being idle, they are depriving their families of the food, clothing, and shelter that reaching their goals could afford them. Is it easy? No. But once you make a choice and commit to it, the Universe has a way of aiding you in the things you need to do to make that choice a reality.
And don’t be afraid to start over. One of the biggest excuses people use for not starting over is age. Just because you’re a certain age is no reason to think you can’t `choose’ again. Colonel Sanders didn’t start the famous Kentucky Fried Chicken franchise until he was 62. You can choose to start a new career, write a book, take up an instrument, start exercising, or whatever at any age. What’s stopping you?
You don’t have to be a slave to mental limitations which is the only thing that keeps us from doing many of the things we might want to do. So, if you’re not happy with where you are, make another choice and keep making choices until you’re where you want to be.
Beginners Guide To Virtual Wholesaling