What to do after finding a cash buyer as virtual wholesaler

Question

Hi there,

I’m new to virtual wholesaling which is my plan. The picture of wholesaling is almost clear to me but I don’t know what strategies do I need to do after finding a cash buyer and a motivated seller assuming we need to talk to the title company but we are not sure about the property’s condition.

I know this might be covered in different posts but not clear yet to me or for some people. Because every wholesaler use different strategy for the goal of viewing the condition with the seller, finalizing the offer, side and let the cash buyer see the property.

The questions are:

1. Should I hire a guy locally to go to the property on day 1 after we had the executed contract, to take detailed pictures, see the condition? If so, do I need to request access from the seller at a specific time?
2. Should I talk to the title company after confirming the condition or before, or like very early after I executed the contract?

3. Instead of hiring someone as in question 1, is it better to ask the seller to take detailed pictures and give them some directions? What’s the pros & cons of doing this? And what to do next if this is the best strategy?

4. Or should I ask the cash buyer to inspect directly without me seeing the property at all (and without hiring someone) or (Asking for detailed pictures from the seller)? Has anyone done this before? It seems the worst thing ever.

5. Some youtubers talked about asking another guy we can hire to install a lockbox after they pick up the keys from the seller/listing agent so that we give the code to the cash buyers later in case of we don’t have a cash buyer in hand. Which can be done on same or different day after confirming the condition (after the photographer is done the job). I’m not sure how to find those guys who can pick up the keys and install the lockbox and how much to pay them? And whether all doors accept the lockboxes sold by home depot?! >> funny.

I know the goal of walkthrough the property is important in terms of finalizing and offer.

I need to know the answers of the 5 questions above to know which strategy is best and how take action of each situation I face. And what’s the best things to do to reduce time and avoid any risk that goes against the contract, or to the deal.

Cheers!

Will Barnard · Answer

You are missing my point sir. Liability is from the possibility that some stranger uses the key and gets hurt, burglarizes the place or vandalizes it. You are not a licensed agent and you do not have the right to market properties you do not own so you are placing liability on yourself. If any of those things happens, you will likely get sued in court by the seller. When the court asks you where your RE license and errors and omissions insurance is, what will you be telling them?

No, unrestricted access to a seller's property is NOT necessary, not even when a RE agent lists it. A RE agent holds a license, insurance and has disclosures and contracts that state that access will be provided (per the contract and agreed to by seller), often times with the list agent or a buyer's licensed agent present during any inspection, visit, or walkthrough. That is a far cry from what you are asking from your seller and no seller in their right mind would agree to such. Virtual wholesaling is a term made up by some guru who made millions selling regurgitated info you can get for free anywhere on the internet. It is just fluff for wholesaling without ever physically walking the property or shaking the seller's hand. It seems impractical to me but I have no doubt that some do it and do it successfully. That said, I am hopeful they have systems in place and protections for the seller.

Will Barnard · Answer

1. If you don't know the condition of the property, how can you possibly make a legit offer on the property? In the case of any flip project, you need to know the exit value (ARV) and then the rehab budget so that you can work the math to come up with your offer amount. Without those two numbers, your offer amount is likely too high as you would be guessing and more often, guessing wrong!

2.No, that comes AFTER you are already contracted and in escrow.

3. No, this is not better. Are you really going to ask the seller to do your job? And how would you know if they took the photos intentionally cutting out the bad portions? Seller is looking out for their best interests, not yours as it should be.

4. Your end cash buyer will most likely want to see the property before agreeing to your price so yes, this will likely be necessary. How you work this out and arrange it with the seller is always the concern and many do it by lying to the seller stating "their partners need to see it" or some other BS story.

5. If you intend to listen to You tubers for your real estate advice, good luck to you. Put yourself in the seller's shoes, do you really believe you would hand out a key to your house to some stranger to install a lockbox on your home for many more strangers to have unbridled access to your home? Additionally, you would be opening yourself up to all kinds of liability issues trying to do this. First, you are not a licensed real estate agent and even if you have a signed written agreement to allow you to place a lock box with their key to their home for any stranger to access, you are still opening yourself up to liability. I'd like to take those You tubers who told you that and place lockboxes on their homes, let me know their names and addresses!!!!

Duncan Hayes · Answer

@Aziz Meshal you’re definitely over thinking things. I virtually wholesale all over, have only walked one property in three years of wholesaling.

Find a handful of serious buyers. Begin establishing a relationship with them, ask their criteria. Find properties that match that criteria and begin the process of getting it under contract. You can ask the seller for pictures or even a FaceTime walk through if you absolutely have to see the homes condition. You need to ask questions about the condition, more than you need them to take pictures. Get the contract with the seller signed. In your contract it should state that you have X amount of days as an inspection period. In those days your buyer can go walk it himself or have his contractor swing by. You won’t be getting keys 8/10 times because either they’re gonna be occupying or they have tenants. Who do you know that gives keys out to a home they live in? Not many people, if any at all. If it’s vacant that’s different, but if it’s a truly distressed property then chances are they won’t even need a key to enter. Or the seller can meet the buyer (your partner) at the property to let them in. Buyer decides if he/she wants it, and if they do you assign to them.

At no point in time during this part of the deal do you need to consult with a title company. They merely facilitate the sale. You don’t involve them until you have two signed contracts on the property.

Duncan Hayes · Answer

@Aziz Meshal never had a buyer try to back door me when they go to meet the seller. That comes from building relationships and showing you’re just as serious about what you do as they are with what they do.

Bob Stevens · Answer

UMMM find then a deal, really not sure how else to respond ? Also how do you know they are real? Have you seen a bank statement ? Seen any properties they have purchased ?

Good Luck

Aziz Meshal · Answer

No plan to marketing on public because we do prospecting on cash buyers/investors, you’re right but if the seller agrees on the right to flip, resell, or any means of making a profit while they want to get rid of their distressed property ASAP, then we can consider this as legal and a problem solving service unless if the state says illegal without a license, OR if the seller disagrees which is rare. Most objections come to the offer pricing.

Aziz Meshal · Answer

What liability you mean? If you think about it from a virtual prospective, there is nothing that you can do to make it safer. If you have better idea to better arrange it virtually then share it!

What you get is a just copy of the key and the guy you’ll hire knows this place will be under fixing and flipping while ownership is protected. First asking the seller to have unrestricted access to the property is necessary. It’s important to provide solutions to the end cash buyer like a contractor quote if necessary. Thus, multiple visits to the property is necessary later for buyers and contractors. Is that done by only traveling to the property assuming we’ve executed the contract? If yes, then virtual wholesaling doesn’t exist unless you know someone from your family or friends who lives in the state of interest who goes back and fourth to the property!

What to do after finding a cash buyer as virtual wholesaler

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