Real Estate Wholesaling has entered the digital age.
Wholesaling real estate has always been an excellent way to begin your career as a real estate investor. It requires very little out of pocket expenses, experience or time to get started. Now investors have taken wholesaling to a whole new level, and are wholesaling properties digitally anywhere in the United States with what’s being called; Virtual Wholesaling.
What Is Virtual Wholesaling?
Virtual Wholesaling is the act of wholesaling a property one hundred percent online, digitally. Typically, real estate investors will wholesale properties in their local markets and focus on a small area called a “farm area” for their deals. However, with Virtual Wholesaling, the wholesale investor is able to choose multiple locations across the country to use as their virtual farm area to cultivate their investment deals.
How Does Virtual Wholesaling Work?
Contrary to normal wholesaling practices, where the wholesale investor may visit the home of a potential seller and attempt to negotiate a purchase agreement; Virtual Wholesaling allows the investor to negotiate the entire transaction online digitally. The fundamentals for the Wholesaling process remain the same, however the tactics, techniques and strategies vary greatly. With normal Wholesaling, the goal of the Wholesaler is to find a motivated seller, negotiate a favorable purchase price and get the subject property under contract. Then the Wholesaler will attempt to find a Cash buyer to sell the property to for more than they have it contracted for. This allows the Wholesaler to profit from the difference between their agreement with the seller and the agreement with the buyer. Virtual Wholesaling works the exact same way, with the only difference being the added complexity of finding additional buyers in multiple locations once they’ve contracted a property.
Who Can Become A Virtual Wholesaler?
The simple answer is, anyone. However, if you are already a Wholesaler and you have deep roots in your local market, it may not be the best option for you. Building a profitable business in any industry requires few key components. Trust and Experience are two very important things for any business to portray to their clients and partners. If you already have a local Wholesaling business you probably already have relationships with local real estate agents, title companies, cash buyers and other investors. It may be more lucrative for you to build on the existing trust and experience in your own backyard to scale and expand your already existing business.
Wholesaling Virtually can be very profitable as a business, but it requires a completely different business model than what local real estate investors use for their businesses. Before you decide to become a Virtual Wholesaler or add Virtual Wholesaling to your business, make sure it’s the right choice for you and your long term goals.