Discover Why Entrepreneurs Start a Virtual Wholesaling BusinessAugust 27, 2021
Investors and entrepreneurs love real estate. Real estate is one of those business opportunities with endless applications. Nowadays, entrepreneurs can do anything from flipping houses to renting out their spare bedroom temporarily to buying and selling real estate in their pajamas from home. No longer are real estate agents the only ones making a profit from real property.
While you could easily rent your house out on Airbnb, huge risks come with this business model. Short-term and vacation renters are more likely to cause expensive damage and leave their mess behind. There is little recourse for the homeowner who gets stuck with the bill. Becoming a real estate agent can be profitable, but it requires a lot of time to get started creating a profitable business. So, what can a real estate loving entrepreneur do? What about virtual wholesaling?
If you haven’t heard of this type of real estate buying and selling, it’s one of the best ways to quickly make money in real estate. Flipping houses can be profitable, but it’s time-consuming. Selling homes the old-fashioned way can result in good investments, but building up a client base takes a lot of time and effort. People start virtual wholesaling real estate from home to get assets that they can re-sell for a profit more quickly and more easily. Not only can they make money buying and selling homes locally, but virtual wholesalers can also interact with other real estate markets in other states.
Table of contents
- How to Get Started Virtual Wholesaling
- What Is Virtual Wholesaling?
- What Are the Benefits of Virtual Wholesaling?
- What Are the Risks of Virtual Wholesaling?
- Simple Steps to Help You Get Started With Virtual Wholesaling
- Why You Should Get a Business License For Virtual Wholesaling
- Where to Find Houses to Wholesale?
How to Get Started Virtual Wholesaling
People want to know how to start virtual wholesaling. The first thing you’ll need to do is learn all you can about it. Many people start by taking a virtual wholesaling course to get a foundation for where to find properties, buy them, and sell them for a profit. These courses also talk about important business details and how to set up the right business structure.
What Is Virtual Wholesaling?
Virtual wholesaling houses take traditional real estate practices and apply them from home. Imagine buying a house you never stepped foot in and then re-selling it right away without ever touching it. This option is essentially what virtual wholesaling is. Through the power of technology, entrepreneurs can find houses anywhere globally, legally purchase them, then sell that property contract for a fee. Often wholesalers sell to other real estate investors. They find people flipping houses in San Diego, Denver, and Nashville and re-sell the properties to them.
The entrepreneur involved in this type of business isn’t interested in making the property beautiful. They are simply interested in finding a new buyer to turn a profit. As more people look for work-from-home opportunities, it’s driving the market for virtual wholesaling. Investors and business owners want new income streams, and this one is very lucrative if done right.
What Are the Benefits of Virtual Wholesaling?
There are always homes to buy somewhere. One of the benefits of virtual wholesaling houses is that investors can buy homes from anywhere even if their local market isn’t doing great. Maybe Tampa’s market is booming, but their location in small-town South Dakota sees a decline.
Another benefit is the ability to work from home. The best virtual wholesaling course will teach investors to research using Google, real estate sites, and more. They’ll learn how to spot lucrative opportunities and when to jump on them. They’ll learn about tools like DocuSign that allow them to send and sign documents legally and remotely. You can also turn a profit more quickly with this business model than you can flipping houses.
What Are the Risks of Virtual Wholesaling?
At first glance, virtual wholesaling looks easy and like you can do everything on your own. The truth is that it does require making connections and knowing about real estate. You can’t just buy any property from home and expect it to sell instantly. Wholesalers need to learn about the markets where they are buying and selling. Getting sued is also a strong possibility. Getting good business insurance and setting up a legal business such as an LLC can help mitigate this risk. Even with the risks, the benefits of this type of business are far greater.
Simple Steps to Help You Get Started With Virtual Wholesaling
1. Do Your Research
Learn everything you can about the steps involved in starting and closing a virtual wholesaling deal. Don’t start until you get prepared with everything you need; in fact, you’ll probably benefit from researching the subject online. You can start with an article such as Virtual Wholesaling: How to Flip Houses from Home.
2. Be Selective
Don’t just buy any house from anywhere. Learn about the local markets. Use online tools in Zillow and Realtor.com to find neighborhoods and properties with good resale value.
3. Reach Out to Sellers
With just 5-10 minutes, you can usually find out who is selling a property and get in contact with them personally via social media channels.
4. Know the Numbers
While you won’t be the one fixing up a damaged house, you should know how much it would cost to do it. These numbers will help you determine how much money you need to buy and sell the home.
5. Make an Offer to the Seller
Once you know all the cost details, it’s time to see if the seller wants to make a deal. To increase your chances of success, use a virtual wholesaling cold calling script.
6. Find a Buyer
It’s important to keep a list of cash buyers on hand as a virtual wholesaler. This will speed up the process of selling the wholesale contract. But using technology, you can also get the property and the contract in front of hundreds of potential buyers with just a few minutes of your time.
7. Hand off the Contract
Once you have a buyer, it’s time to assign this contract to them and hand it off. You walk away with a nice little wholesale fee, and they get a house to fix up.
Why You Should Get a Business License For Virtual Wholesaling
Getting a business license is one of the most important things you can do when you get started with virtual wholesaling houses. Business licenses ensure you have the proper legal authority to do business in your state. While you might think that you can get started without it, it’s more important than you realize.
Any buyer of your homes could come back to try and sue you. Without a business license or the right business structure, this lawsuit could affect you and your personal assets instead of simply impacting your business. Virtual wholesalers might need a business license in California, Texas, or Florida. It’s always important to follow local state and county business laws to protect your virtual wholesaling venture.
Where to Find Houses to Wholesale?
Real estate virtual wholesaling pioneers need to look at the same resources as those looking into how to find flip properties. They’ll be looking for foreclosures, distressed properties, short sales, and people wanting to sell quickly. These homes are on Craigslist, Realtor.com, Zillow.com, and more online sites. Many real estate wholesalers can also find for sale by owner properties just by driving around town. These are just some of the ways to find properties. Sometimes connecting with real estate agents can also help them find lucrative property options.
Investing in real estate is easier than ever before. While fixing and flipping is a great business model, virtual wholesaling is an even better option for those of you who aren’t handy. With the right training and business practices, you can easily start up a business virtual wholesaling houses. As with any business, there are risks, but the rewards make it worth it. If you need the services of an attorney, we have resources to help you find a real estate lawyer in La Jolla or all of San Diego County.