If I was going to start virtual wholesaling, here is what I would do…
Hi all. I am a former wholesaler who is considering getting back in the game. Because I have relocated to rural Iowa, it is likely that I will have to wholesale virtually (in outside markets, all around the country)
Because I have actually done this, I figured I would share the roadmap that I will follow. Sharing with this group because I see a lot of people asking about wholesaling remotely/virtually.
When I start doing this, Ill work according to several rules:
1. This process will be kept SUPER SIMPLE. It’s how I closed my last deal before I stopped wholesaling, so, yes—it works because I have personally done it.
2. The process needs to be as hands-off for me as possible (outsource as much as possible).
NOTE: The process WILL involve finding a deal and then working with another “boots on the ground” wholesaler in the city I am targeting, then splitting the deal 50/50. This is often referred to as “co-wholesaling”. I know some people criticize this method because you are sacrificing so much profit by not hiring your own employee/boots on the ground person, but I see several MAJOR advantages to using a local boots on the ground wholesaler that is already established in my target market….
A local (boots on the ground) wholesaler will save you TONS of time and energy getting set up because they are already established and are set up with:
1. Local buyers
2. Local agents
3. Local (State approved) contracts
4. Local REIA
5. Local closing companies
6. Local real estate attorneys
7. Already knowledgeable about wholesaling
8. Know how to estimate rehab costs
9. Know how to negotiate
10. Know local market/price points
So, if that isn’t what you are interested in doing, there are several other options….
1. Hire your own employee in the city you want to target and train them on how to be boots on the ground
2. Hire someone to negotiate the deal only
3. Hire www.wegolook.com and have someone take pics of the house for $60-$70.
4. Etc.
OK, now that that’s out of the way, here is how MY process will work.
1. Ill pull the lists
2. Ill set up mailers
3. The calls will be screened by an answering service who will set appointments with motivated sellers (The appointment will go on a shared calendar with my boots on the ground guy)
4. Boots on the ground guy will meet with seller, take pics, evaluate rehab costs, negotiate price, and get contract signed.
5. Boots on the ground guy will then shop deal to his buyers lists or otherwise market the contract however they normally do.
6. Boots on the ground guy will go to closing
7. Split 50/50 or 40/60…depending on boots on the ground guy (how much work he did), but this is agreed to ahead of time.
That’s it.
Notice that I personally only do steps 1 and 2. The rest is outsourced. Of course, steps 1 and 2 could be outsourced too, but I actually enjoy pulling lists. Its fun for me – that is all I want to do. I hate talking to sellers, especially.
Ok, you are probably wondering HOW I would do these things, what resources I would use, etc.
Here you go.
1. Decide what city I want to wholesale in.
a. Read this: 17 U.S. Markets With the Best Predicted Single Family Rental Returns for 2016 (https://www.biggerpockets.com/renewsblog/2016/04/02/best-single-family-rental-returns-2016)
b. Make a post on biggerpockets/wholesaling houses full time and ASK where hot markets are.
c. Google “Best markets for cashflow rentals” or “best markets for flipping houses”
2. Decide which ZIP CODES to target.
a. Watch this video: Virtual Wholesaling - market analysis - most active zipcodes (from Haim Mamane Palman) https://www.youtube.com/watch?v=6WlGqVCyqFw
b. Watch this video: Finding the Best Zip Codes to Target – Brilliant At The Basics Part 2 (from Joe Mccall) http://www.realestateinvestingmastery.com/finding-the-best-zip-codes-to-target-brilliant-at-the-basics-part-2
3. Locate a Boots on the ground EXPERIENCED wholesaler WITH A GOOD REPUTATION in the cities I choose to work in
a. Seach linkedin for “CITY, STATE real estate wholesaler”
b. Contact REIA in city I want to target and ask for wholesalers
c. Search google for “CITY, STATE I buy houses” and contact the websites that come up
d. Make post in biggerpockets/wholesaling houses full time facebook group asking for wholesalers in the city you are targeting
e. Contact closing companies in your target city and ask if they know any established wholesalers they can connect you to (they won’t vouch for losers)
4. Get mailing lists of motivated sellers:
a. Listsource.com
b. USLEADList.com
c. www.Findmotivatedsellersnow.com
d. Public records requests to get (tax delinquent list, divorce list, tired landlord list, section 8 landlord list, code violations list, etc.)
e. Read this list for additional ideas on where to find motivated sellers: https://www.biggerpockets.com/forums/93/topics/76751-finding-motivated-sellers-my-list
5. Get a google voice number (which will be forwarded to answering service)
6. Upload list/post card templates
a. Click2mail.com
b. Yellowletterscomplete.com
7. Hire answering service (FOR REAL ESTATE INVESTORS, NOT a regular answering service) that can screen calls, determine motivation, book appointment (ON FIRST CALL) with motivated seller
a. www.managelikeaceo.com (I’ve never used them but a buddy of mine said he uses them and they are awesome. NOTE: I used patlive for this and they SUCKED).
b. https://midwestrev.com/seller-snipers-rei-call-center (Never used them but was told by Haim that they are awesome).
c. Whatever service you choose, they need to be able to quickly determine soft-pass offer price by doing the following (video by Haim) https://www.youtube.com/watch?v=5WTf1-2OUNI
8. Set up answering service to put appointments into google calendar, which will be shared with your boots on the ground wholesaler.
9. Boots on the ground guy will visit property, estimate costs, get under contract, and market for cash buyers, arrange closing
50/50 split.
I just did this a few months back and it worked just fine, so keep the negative ‘it wont work’ comments to yourselves.
Im posting this to help newbies….and because I was already in the process of laying out how I am going to get back into wholesaling for myself, so I am sharing this list which I really created for myself.
There is a bit more that you need to know but I am not going
to write a long book on this. However, this process should be able to help you get up and running….in the beginning. Then, you can bring the answering service in house, hire your own boots on the ground guy, etc.
The best part is…this can EASILY be replicated in any city you want to wholesale in…all from your computer.
