Understanding Virtual Wholesaling for Real Estate Investors

Virtual wholesaling is simply investing in real estate using technology to buy or sell properties at a distance. While investing in your local market is a great option for beginners to build a portfolio and learn the business, virtual wholesaling opens the door to many more investment opportunities. Current technologies, like the internet, email, smartphones and online communities, make virtual wholesaling viable for investors.

The Benefits of Virtual Wholesaling

With virtual wholesaling, a real estate investor spreads their reach across multiple markets, which not only maximizes their possible return on investment but expands the type of real estate investment options available.

For real estate investors in rural areas, virtual wholesaling is a game changer. New opportunities are available for commercial and residential properties to be flipped or rented for the short or long term.

As with any type of real estate investing, a strategic approach, in line with your business plan, is key to long-term success. Look for a variety of virtual wholesaling opportunities, like short sales, foreclosures, REOs, probate properties and more.

• Better Markets – Your local market might be heavily saturated or, like in rural areas, have limited investment opportunities. Broaden your reach into better markets for real estate wholesaling through virtual wholesaling.
• Less Competition – Lucrative markets attract many investors and speculators; however, other areas may be undiscovered or undervalued, which offer better possibilities and less competition. Grow your portfolio and profits by tapping into less competitive markets.
• Diversification – Certain areas might offer limited types of real estate, preventing diversification of your portfolio, which increases your risks. Expanding into other markets might offers a solution to meet the specific needs of your buyers.

How to Make Virtual Wholesaling Work for You

Not every market is the same, which is a benefit of virtual wholesaling. However, different markets may have unique real estate patterns, causing property values and demand to adjust differently in each location. This means you must stay informed and educated about the specific markets where you invest. Thankfully, resources are available to help. Local real estate reports, online articles and expanding your network all provide valuable information to assist with decision making.

A savvy investor knows that the smart plan is to engage in real estate investments where you’ll see the highest return on your investment. This means you must do the work to identify those markets with the highest potential.

To be successful with virtual wholesaling, organization and delegation is key. Create a system that works for you to track your deals and stay on top of your schedule. Also, work with trusted collaborators from your network. Another great tool is to invest in an assistant to help keep track of all the details and tasks.

Virtual Wholesaling Guide

Virtual wholesaling works similarly to wholesaling in your local market. Here are a few steps to guide you in successful virtual wholesaling.

• Research – Identify the best industry sources to gain information about local markets that show signs of a shifting real estate market. Invest in areas that are undervalued. Depressed markets that signal a shift in demand for properties are a great place to invest in real estate.
• Use Your Network – Online resources are excellent for expanding your network. Identify agents or construction contractors in the markets of interests to find potential properties and find out more about the trends and risks for each local area.
• Visit the Area – It’s smart to visit the locations where you’re planning to invest. Schedule appointments in advance of your trip with local industry professionals to establish a relationship.
• Make the Plan Work – Follow your normal process for investing in real estate. If you’ve done the work to research the area and build relationships, you’re now in the position to identify specific properties and work your plan. Be smart and protect your interest just like with local real estate deals.

Don’t Let Fear Limit Your Growth

One of the biggest barriers to virtual wholesaling is the fear of losing control. Unlike with your local market, you aren’t onsite to see the impact of your decisions or meet with all the players face-to-face. However, consider just how many of the steps in your local real estate deals you’re already doing virtually. From phone calls to emails, much of the communication with local real estate transactions happen using virtual tools.

Don’t limit your real estate investment business because of fear. Virtual wholesaling is an excellent way to grow your portfolio and profits by expanding your horizons. Be smart and protect your interests, but at the same time, think outside box.

As always, use your resources. The same great tools that make virtual wholesaling possible also provide a great way to deepen your knowledge of the real estate investing industry in order to pave a path for success. Educate yourself from industry experts through blogs, videos, eBooks, webinars and online courses. Virtual wholesaling is a smart option for today’s real estate investors.