Online wholesaling

[Brian Wheeler]

Okay so I have people message me that are out of state that are doing deals in my area and i have heard of wholesaling online. Does anyone do this and can explain to me how this works? The internet is terrible for this question. Thank you! 

[Jeff Rappaport]

@Nick Boullion, @Gabriel Amedee, @Brian Wheeler

Actually, wholesaling virtually is not that difficult.  I live in SLC, UT and also work in the Idaho market.  I have only been to Idaho once and that was about 25 years ago.  You can structure virtual wholesaling in a number of ways.  

One way is to partner up with an experienced wholesaler in the area you would like to be working in.  You do the marketing, create the leads, prescreen them and then turn them over to the experienced boots on the ground wholesaler.  Let the wholesaler negotiate the deal, put it under contract and then get it sold.  Typically a 50/50 split is used in this case but everything is negotiable.  

What I did is I placed an ad on BP to find a realtor in the area I could work with.  I chose a realtor because I wanted access to comps in the area.  

The way I structure things is I do the marketing for the leads.  I have them prescreened and then I talk to the seller over the phone.  I let the seller know that I will send them an offer on their property by email.  I follow up with the seller 48 hours after sending the offer so we can discuss in detail.  All negotiations are handled by me and done over the phone.  I have never met a seller from Idaho.  Once I put the property under contract I send a request to my realtor to go inspect the property.  She will take some pictures or video of it and send it back to me.  If I like the property (if I don't like the property I will either renegotiate or cancel the contract) I then check the title (find a good title company to work with in the area) and start marketing for buyers.  If the property is occupied or the seller will not let me keybox it I refer all the qualified buyers to my agent to get them through the property.   I only want buyers that are ready and able to buy if the property passes their inspection.  If the property is vacant I can just have it keyboxed and let my buyers go at their leisure.  Once I find the buyer that is interested in the property we sign an assignment of contract and I send everything over to the title company.  Set up a closing and make sure it goes the way it should (be careful on this one. You always have to assume the title company does not know what they are doing in terms of an assignment or double close).  The title company wires me the funds and then I pay my agent.  My agent can also make more money if she brings the buyer.  That way we are both working on building a buyer's list simultaneously.  

Since I also do owner financing and lease options I may have a little more work to do to find an owner occupant.  The agent will put out my bandit signs (about 20 handwritten all around the property) and somewhere down the road take all the calls that come in from them.

That's basically it!  If you have any additional questions PM me.  Would be happy to help you!  Good luck!