Virtual Wholesaling
Virtual Wholesaling: A Step-by-Step Guide to Flipping Houses Online
Back almost 10 years ago when I started wholesaling real estate I was all about doing it with no marketing budget (because I didn't have two nickels to rub together) So I started driving for dollars and it worked well, very well in fact and I started doing a lot of deals (5 in my first 45 days) Fast forward 5 years... business is going well and I'm rehabbing houses for myself and other investors but I have no spare time to drive for dollars anymore but I needed a low cost way to find more deals (making money didn't mean I still wasn't cheap)
That's when I came across the concept of virtual wholesaling and the funny thing is I had already done it a few times already (sometimes you have to hit me with a brick before I realize things, just ask my wife) Since I had been wholesaling for quite a few years I picked it up very quickly and used tools I already had in place to make it work even better. Honestly if I had never wholesaled a day in my life I could of quickly made money doing it and so can you.
Today's wholesaling market is tougher than in was 10 years ago. There are a lot of other wholesalers marketing to property owners and spending tons of money on direct mail and bandit signs. There's also less opportunities in the real estate market because inventory is down and prices continue to rise.
But don't give up your dreams of of wholesaling... All this competition and good market conditions creates a great opportunity for virtual wholesalers!!!
That's when I came across the concept of virtual wholesaling and the funny thing is I had already done it a few times already (sometimes you have to hit me with a brick before I realize things, just ask my wife) Since I had been wholesaling for quite a few years I picked it up very quickly and used tools I already had in place to make it work even better. Honestly if I had never wholesaled a day in my life I could of quickly made money doing it and so can you.
Today's wholesaling market is tougher than in was 10 years ago. There are a lot of other wholesalers marketing to property owners and spending tons of money on direct mail and bandit signs. There's also less opportunities in the real estate market because inventory is down and prices continue to rise.
But don't give up your dreams of of wholesaling... All this competition and good market conditions creates a great opportunity for virtual wholesalers!!!
Virtual Wholesaling - Learn How to Flip Houses with no money, and even with bad credit...
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Let's be clear... I'm not selling a "Virtual Wholesaling" program, although I will suggest a couple things you should buy they're not necessary. (though, they will speed up the process)
People often email me and ask how they can get started in wholesaling or flipping houses with no money and this the strategy I recommend to them and it's the one I'm recommending to you. Okay, let's get started... |
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First off let me explain why this method of virtual wholesaling the easiest way to get started flipping real estate online:
- You don't need any real estate experience
- There are no marketing costs
- Your profit margin is 100%
- No hunting for deals – driving for dollars, bandit signs, newspaper ads
- It's quick and easy to learn
- You don't need to actually see houses in person
- Absolutely no negotiating or talking directly with sellers
- No dealing with repair estimates and contractors
- No earnest money deposits
- Best of all, you can do it right from your couch, dining room table or your favorite coffee house
Virtual Wholesaling Step-by-Step Guide
Step 1: Pick your wholesaling market
Typically it's best to pick a market you're familiar with (you're local market) or someplace you have lived or visit frequently. Once you get good at being a virtual wholesaler you can branch out but for now keep it simple.
Step 2: Don't complicate things
When I started wholesaling I didn't have a website, business cards or office and honestly you don't need any of them to be an success. Grab you pencil, here is the list of what you do need: 1)phone, 2)laptop, 3)email account, 4) the desire and guts to try something new
Step 3: Find some cash buyers (real estate investors)
Let me clarify what a real estate investor is... Someone who buys residential real estate on a regular basis. Now let me clarify what a real estate investor isn't... Someone that says they are but has never bought a house (or) a wholesaler pretending to be a cash buyer.
So how do you find "real" cash buyers you ask? The easiest way is to subscribe to the cash buyer data feed which will show you every single investor buying nationwide, what properties they're buying, what they're paying, their company name, address and often their phone number. The cost is $1.97 for the first month and then $49.95 per moth (well worth it!!!!) You'll then reach out to these investors and introduce yourself as a wholesaler that often find below market deals in their area. You'll find out what their criteria is and get a contact email and cell phone number for the person so you can notify them when you locate a property that they would be interested in. (easy peasy)
If you want to do this without the cash buyer data feed you can place ad's on craigslist and post signs around town that says something like this Ad Title: Cheap Distressed Houses in [Your Town] Ad Body: Hey, if you're a local real estate investor and are looking for deeply discounted properties, I would love the opportunity to connect with you. I’ve discovered a way to secure an endless supply of houses at pennies on the dollar in [Insert Location], and would love to pass these deals along to you. If you’d like to save countless hours and thousands in marketing costs, join my VIP Buyer’s List. Just reply with your best contact information… I look forward to talking soon. Thanks. [Insert Your Name]
This method does work but you'll have to weed out the fake investors from the real ones so you don't waste your time on someone who will never buy a house. When you speak with a cash buyer you'll want to get the following information.
Buyer Information Checklist:
-Name
-Cell Phone #
-Email Address
-Investing Area (Cities They Will Buy In)
-Budget (All in number / House + Repairs)
-Property Preference (Beds/Bath/ Price Range)
-Difficulty Level (Gut Jobs, Carpet/Paint,etc)
-Preferred Notification Method (phone call/email/text)
-Any Special Notes
Step 4: Find Active Wholesalers In Your Area
Now it's time to build your wholesaler list... You only want a list of active wholesalers that are marketing for motivated sellers. The objective is for you to get on their email list so when they put a new house under contract you'll be notified. If searching craigslist for wholesalers you'll want to type terms like "ARV" (after repair value), "Below market", "Cash Buyers" or "Investors Only" into the craigslist search bar.
Wholesalers will typically use theses keywords in their ads. You can also go to the real estate services section and type in "we buy houses" to bring up ads of wholesalers looking for properties. reply to their ads and just say Hi, I'm an investor looking for properties in the area, can you ad me to your mailing list (and provide your email address) They might ask for your criteria.. just say send any good deals my way., I'll know the deal when i see it!
You can also call bandit signs in your area when you're driving around town (The "we buy houses"signs) and tell them you're a new investor and you'd like to be added to their mailing list if they ever sell any of the houses they buy (they do) Again, when asked where you buy, price range or anything else just say send me anything you come across, I'll know the right deal when I see it.
Going to your local REIA meeting is also a good place to find wholesalers (Real Estate Investors Association) just google Reia groups [your home town]
If you want to bypass all the confusion of finding Real Estate Wholesalers in your area I highly recommend The 10 Hour Wholesaler created by Justin Wilmot. It will give some great techniques for connecting with other wholesalers and put your virtual wholesaling business in the fast lane!
Step 5: Play Match Maker
Now that you've built your list of cash investors and have wholesalers sending you below market deals its time to start playing match maker.
When a wholesaler send you a property that meets the criteria of one of your cash buyers you'll want to contact the wholesaler. The conversation should go something like "I have a couple investors I deal with that might be interested in the property you just sent me, if I can put a deal together are you open to co-wholesaling the deal? (the typical c0-wholesaling arrangement is a 50/50 split of the wholesaling fee... They have the seller and you have the buyer) They will either agree or negotiate a different split with you. When you come to an agreement have them sign a JV Agreement (located on our wholesaler real estate contracts page) and then forward the deal to your potential buyers.
Again, If you're new to wholesaling and virtual wholesaling I strongly suggest you get the 10 hour wholesaler program... It goes into great detail on how to negotiate JV agreements and lays out a nice virtual wholesaling process. There is a one time cost of $97.00 for the program and it's worth every penny!!!
Step 6: Step Back
This is the beauty of this virtual wholesaling system. Once you have built relationships with the cash buyers and your network of wholesalers you just sit back and let the process happen. You'll have the JV agreement and you'll want to send it to the title company that's doing the closing (ask the wholesaler for their information) and that's it. The wholesaler, investor and title company hammer out the details and you collect your check at closing. You can get more involved if you like but as a true "Virtual Wholesaler" you should enjoy your coffee while someone else handles all the details.
Step 7: Follow Up
It's always a good idea to touch base with the wholesaler, cash buyer and title company through the process. You want to make sure there are no issues with the deal and want to remind everyone that you're an active participant in the transaction.
Step 8: Get Paid
Once the property inspections have been done, title is complete and money has been wired it's time for the closing. You can go to the closing if you like to say hello (and pick up your check in person) or just have the title company send your check to you. Earthier way you owe yourself a nice dinner on the town for closing your first deal. Now just repeat this process as many times as possible.
Virtual Wholesaling Business Expenses:
Flipping houses online (virtual wholesaling) not only can make you a lot of money, it also is the cheapest way to get started flipping houses and work for someone that has no money and even bad credit.
Let's take a look at the numbers...
Email Account - Free (I suggest a google account)
Business Phone number - Free (get a google voice number and forward it to your cell phone)
Laptop - Free (I assume you already have one if you're reading this)
Office Rental - Free (you don't need an office)
Business Expenses - None (you don't need anything else)
Optional Expenses
10 Hour Wholesaler Program $97.00 (one time charge)
Cash Buyer Data Feed $1.97 Trial and then only $49.95 per month
Total Business Start Up: $98.97
Monthly Expenses: $49.95
Final Thoughts
Turn on the radio or get on the internet and you'll see tons of real estate investing coaches, programs, gurus and get rich quick programs that will cost you thousands of dollars. Take it from a guy who's been in the real estate business for almost 20 years (10 of them as a real estate wholesaler) You don't need to spend a fortune on coaching, programs or marketing. Just follow the steps above and you can be a successful virtual wholesaler.
Hope this information helps you in your journey.
David @ The Wholesalers Toolbox
Typically it's best to pick a market you're familiar with (you're local market) or someplace you have lived or visit frequently. Once you get good at being a virtual wholesaler you can branch out but for now keep it simple.
Step 2: Don't complicate things
When I started wholesaling I didn't have a website, business cards or office and honestly you don't need any of them to be an success. Grab you pencil, here is the list of what you do need: 1)phone, 2)laptop, 3)email account, 4) the desire and guts to try something new
Step 3: Find some cash buyers (real estate investors)
Let me clarify what a real estate investor is... Someone who buys residential real estate on a regular basis. Now let me clarify what a real estate investor isn't... Someone that says they are but has never bought a house (or) a wholesaler pretending to be a cash buyer.
So how do you find "real" cash buyers you ask? The easiest way is to subscribe to the cash buyer data feed which will show you every single investor buying nationwide, what properties they're buying, what they're paying, their company name, address and often their phone number. The cost is $1.97 for the first month and then $49.95 per moth (well worth it!!!!) You'll then reach out to these investors and introduce yourself as a wholesaler that often find below market deals in their area. You'll find out what their criteria is and get a contact email and cell phone number for the person so you can notify them when you locate a property that they would be interested in. (easy peasy)
If you want to do this without the cash buyer data feed you can place ad's on craigslist and post signs around town that says something like this Ad Title: Cheap Distressed Houses in [Your Town] Ad Body: Hey, if you're a local real estate investor and are looking for deeply discounted properties, I would love the opportunity to connect with you. I’ve discovered a way to secure an endless supply of houses at pennies on the dollar in [Insert Location], and would love to pass these deals along to you. If you’d like to save countless hours and thousands in marketing costs, join my VIP Buyer’s List. Just reply with your best contact information… I look forward to talking soon. Thanks. [Insert Your Name]
This method does work but you'll have to weed out the fake investors from the real ones so you don't waste your time on someone who will never buy a house. When you speak with a cash buyer you'll want to get the following information.
Buyer Information Checklist:
-Name
-Cell Phone #
-Email Address
-Investing Area (Cities They Will Buy In)
-Budget (All in number / House + Repairs)
-Property Preference (Beds/Bath/ Price Range)
-Difficulty Level (Gut Jobs, Carpet/Paint,etc)
-Preferred Notification Method (phone call/email/text)
-Any Special Notes
Step 4: Find Active Wholesalers In Your Area
Now it's time to build your wholesaler list... You only want a list of active wholesalers that are marketing for motivated sellers. The objective is for you to get on their email list so when they put a new house under contract you'll be notified. If searching craigslist for wholesalers you'll want to type terms like "ARV" (after repair value), "Below market", "Cash Buyers" or "Investors Only" into the craigslist search bar.
Wholesalers will typically use theses keywords in their ads. You can also go to the real estate services section and type in "we buy houses" to bring up ads of wholesalers looking for properties. reply to their ads and just say Hi, I'm an investor looking for properties in the area, can you ad me to your mailing list (and provide your email address) They might ask for your criteria.. just say send any good deals my way., I'll know the deal when i see it!
You can also call bandit signs in your area when you're driving around town (The "we buy houses"signs) and tell them you're a new investor and you'd like to be added to their mailing list if they ever sell any of the houses they buy (they do) Again, when asked where you buy, price range or anything else just say send me anything you come across, I'll know the right deal when I see it.
Going to your local REIA meeting is also a good place to find wholesalers (Real Estate Investors Association) just google Reia groups [your home town]
If you want to bypass all the confusion of finding Real Estate Wholesalers in your area I highly recommend The 10 Hour Wholesaler created by Justin Wilmot. It will give some great techniques for connecting with other wholesalers and put your virtual wholesaling business in the fast lane!
Step 5: Play Match Maker
Now that you've built your list of cash investors and have wholesalers sending you below market deals its time to start playing match maker.
When a wholesaler send you a property that meets the criteria of one of your cash buyers you'll want to contact the wholesaler. The conversation should go something like "I have a couple investors I deal with that might be interested in the property you just sent me, if I can put a deal together are you open to co-wholesaling the deal? (the typical c0-wholesaling arrangement is a 50/50 split of the wholesaling fee... They have the seller and you have the buyer) They will either agree or negotiate a different split with you. When you come to an agreement have them sign a JV Agreement (located on our wholesaler real estate contracts page) and then forward the deal to your potential buyers.
Again, If you're new to wholesaling and virtual wholesaling I strongly suggest you get the 10 hour wholesaler program... It goes into great detail on how to negotiate JV agreements and lays out a nice virtual wholesaling process. There is a one time cost of $97.00 for the program and it's worth every penny!!!
Step 6: Step Back
This is the beauty of this virtual wholesaling system. Once you have built relationships with the cash buyers and your network of wholesalers you just sit back and let the process happen. You'll have the JV agreement and you'll want to send it to the title company that's doing the closing (ask the wholesaler for their information) and that's it. The wholesaler, investor and title company hammer out the details and you collect your check at closing. You can get more involved if you like but as a true "Virtual Wholesaler" you should enjoy your coffee while someone else handles all the details.
Step 7: Follow Up
It's always a good idea to touch base with the wholesaler, cash buyer and title company through the process. You want to make sure there are no issues with the deal and want to remind everyone that you're an active participant in the transaction.
Step 8: Get Paid
Once the property inspections have been done, title is complete and money has been wired it's time for the closing. You can go to the closing if you like to say hello (and pick up your check in person) or just have the title company send your check to you. Earthier way you owe yourself a nice dinner on the town for closing your first deal. Now just repeat this process as many times as possible.
Virtual Wholesaling Business Expenses:
Flipping houses online (virtual wholesaling) not only can make you a lot of money, it also is the cheapest way to get started flipping houses and work for someone that has no money and even bad credit.
Let's take a look at the numbers...
Email Account - Free (I suggest a google account)
Business Phone number - Free (get a google voice number and forward it to your cell phone)
Laptop - Free (I assume you already have one if you're reading this)
Office Rental - Free (you don't need an office)
Business Expenses - None (you don't need anything else)
Optional Expenses
10 Hour Wholesaler Program $97.00 (one time charge)
Cash Buyer Data Feed $1.97 Trial and then only $49.95 per month
Total Business Start Up: $98.97
Monthly Expenses: $49.95
Final Thoughts
Turn on the radio or get on the internet and you'll see tons of real estate investing coaches, programs, gurus and get rich quick programs that will cost you thousands of dollars. Take it from a guy who's been in the real estate business for almost 20 years (10 of them as a real estate wholesaler) You don't need to spend a fortune on coaching, programs or marketing. Just follow the steps above and you can be a successful virtual wholesaler.
Hope this information helps you in your journey.
David @ The Wholesalers Toolbox
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