Virtual Wholesaling
A Step-by-Step Guide to Flipping Houses Online
Back almost ten 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 five 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, 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 have quickly made money doing it and so can you. Today's wholesaling market is a lot tougher than it was ten 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 are also fewer opportunities in the real estate market because inventory is down and prices continue to rise. But don't give up your dreams of wholesaling... All this competition and good market conditions create an excellent 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, 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 have quickly made money doing it and so can you. Today's wholesaling market is a lot tougher than it was ten 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 are also fewer opportunities in the real estate market because inventory is down and prices continue to rise. But don't give up your dreams of wholesaling... All this competition and good market conditions create an excellent opportunity for virtual wholesalers!!!
What Is Virtual Wholesaling?
Virtual Wholesaling is built upon the same basic concept of traditional wholesaling, but instead of wholesaling locally in your real estate market you pick another market that perhaps has a more robust investor activity or less competition than your own. Distance 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 any market you choose.
In the past, this hasn't been the best strategy for beginners, but with some new twists, I'll show you why this might be the best way for a new wholesaler to learn the business quickly and start making money faster than ever before.
Virtual Wholesaling is built upon the same basic concept of traditional wholesaling, but instead of wholesaling locally in your real estate market you pick another market that perhaps has a more robust investor activity or less competition than your own. Distance 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 any market you choose.
In the past, this hasn't been the best strategy for beginners, but with some new twists, I'll show you why this might be the best way for a new wholesaler to learn the business quickly and start making money faster than ever before.
No money, credit or hammers needed!
Let's be clear... I'm not selling a "Virtual Wholesaling" program, although I will suggest a couple of 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 suggesting to you as well. Okay, let's get started...
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 suggesting to you as well. Okay, let's get started...
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
- It's quick and easy to learn
- You don't need visit the properties
- Absolutely no negotiating or talking directly with sellers
- No dealing with repair estimates or contractors
- No earnest money deposits
- Best of all, you can do it right from your couch, dining room table or your favorite coffee house, anywhere in the world.
Virtual Wholesaling Step by Step Guide
Step 1: Pick your wholesaling market
Typically it's best to pick a market you're familiar with, maybe someplace you have lived, vacation or visit frequently. Knowing the location helps when trying to learn the market, housing values and where the investors are buying, it's not crucial that you know the area it only helps a little.
Step 2: Get set up.
No need to order business cards because we're going virtual, but let's talk about what tools you will need to wholesale real estate virtually.
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 in your market (or nationwide), what properties they're buying, what they're paying, their company name, address and often their phone number.
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 meets their criteria. (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 where they buy)
-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
Download Your copy of the Virtual Wholesaling Script PDF
Typically it's best to pick a market you're familiar with, maybe someplace you have lived, vacation or visit frequently. Knowing the location helps when trying to learn the market, housing values and where the investors are buying, it's not crucial that you know the area it only helps a little.
Step 2: Get set up.
No need to order business cards because we're going virtual, but let's talk about what tools you will need to wholesale real estate virtually.
- First off get yourself a virtual phone number, I suggest Google Voice because its free and all you need is a Gmail account.
- Laptop or desktop computer
- Business email account
- The Desire & Drive to learn 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 in your market (or nationwide), what properties they're buying, what they're paying, their company name, address and often their phone number.
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 meets their criteria. (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 where they buy)
-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
Download Your copy of the Virtual Wholesaling Script PDF

virtual_wholesaling_script.pdf |
Step 4: Find Active Wholesalers In Your Virtual Market
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 these 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 add 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!
Joining local real estate wholesaling facebook groups is also an excellent place to find wholesalers, try searching terms like "[city] Wholesale Real Estate" and click on the group button and see what shows up, be creative and keep looking, and you'll find plenty of wholesalers if its a populated market.
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 matchmaker. When a wholesaler sends 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 of investors I deal with that might be interested in the property you just sent, if I can put a deal together are you open to co-wholesaling the deal? (the typical co-wholesaling arrangement is a 50/50 split of the wholesaling fee when they have the seller, and you have the buyer)
They will either say no, agree to a 50/50 split or negotiate a different agreement with you. When you settle on the split have them sign a JV Agreement (located on our wholesaler real estate contracts page) and then forward the property informationl to your potential buyers for review.
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 an excellent 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 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, 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. After both parties sign the paperwork, the title company can wire your portion of the assignment fee to your bank account or send you a check, either way you owe yourself a nice dinner on the town for closing your first deal. Now repeat this process as many times as possible.
Virtual Wholesaling Business Expenses:
Virtual Wholesaling can not only make you a lot of money, but 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 (nothing else is required although I recommend the products below)
Optional Expenses (Highly Recommend )
10 Hour Wholesaler Program $97.00 (one time charge)
Cash Buyer Data Feed $50.00 Per Month (Approx)
Investor Carrot Website $49.00 Per Month
I recommend the three products above because they will simply the process greatly!
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
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 these 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 add 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!
Joining local real estate wholesaling facebook groups is also an excellent place to find wholesalers, try searching terms like "[city] Wholesale Real Estate" and click on the group button and see what shows up, be creative and keep looking, and you'll find plenty of wholesalers if its a populated market.
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 matchmaker. When a wholesaler sends 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 of investors I deal with that might be interested in the property you just sent, if I can put a deal together are you open to co-wholesaling the deal? (the typical co-wholesaling arrangement is a 50/50 split of the wholesaling fee when they have the seller, and you have the buyer)
They will either say no, agree to a 50/50 split or negotiate a different agreement with you. When you settle on the split have them sign a JV Agreement (located on our wholesaler real estate contracts page) and then forward the property informationl to your potential buyers for review.
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 an excellent 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 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, 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. After both parties sign the paperwork, the title company can wire your portion of the assignment fee to your bank account or send you a check, either way you owe yourself a nice dinner on the town for closing your first deal. Now repeat this process as many times as possible.
Virtual Wholesaling Business Expenses:
Virtual Wholesaling can not only make you a lot of money, but 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 (nothing else is required although I recommend the products below)
Optional Expenses (Highly Recommend )
10 Hour Wholesaler Program $97.00 (one time charge)
Cash Buyer Data Feed $50.00 Per Month (Approx)
Investor Carrot Website $49.00 Per Month
I recommend the three products above because they will simply the process greatly!
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
Visit The 10HourWholesaler.com
Get Instant Access To The 10 Hour Wholesaler Program
Our Favorite Virtual Wholesaling System!!!
Your Member Experience Team
|
**NOTE: This is a digital product available for instant access **
100% Satisfaction Guaranteed.
Remember, You are never at risk! You're fully protected by our 30 day 100% money-back guarantee. Your transaction is completely safe and secure via our 1024 Bit Secure Server (the same stuff the banks use). |
We Create Awesome Member ExperiencesOur main goal here is to create awesome experiences and results for our members. Quick honest customer service is just the first step with us. We go a step further and strive to help you live the best life you can live.