Just starting out? You should be wholesaling. And not just wholesaling. Virtual wholesaling.
Hey, Moguls. Cris Chico here to tell you that wholesaling is a great strategy for any real estate investor. I have succeeded as an investor by wholesaling. But it’s an especially awesome strategy for new investors.
Why?
Let me list the reasons…
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Good credit isn’t required
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You don’t need cash in your bank account
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You won’t pay any repair costs
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You won’t get stuck with a property
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You won’t need to worry about dealing with banks or getting short sales approved
Have I convinced you yet?
Keep reading – I’ve got really great info in this lesson…
What Is Wholesaling?
Here’s the skinny on wholesaling…
You find a motivated/distressed seller. You agree to make a deal on their property for a certain price – a discounted price. This is just an agreement; it’s the first step. Then you add your own profit on top of the seller’s price and look for another investor to buy the property at your higher price.
Say the seller wants $50,000 for the property. You’re going to turn around and sell that property for $60,000 to another investor.
You’re not actually buying the property and then reselling it, though. You will transfer your agreement with the seller to that other investor, but you add your own fee. So the second investor pays a total of $60,000 and they close on the deal.
They take money out of their pocket and take that risk, but you get $10,000 without any risk.
Sounds pretty good, right?
Wait. It gets better.
Virtual Wholesaling
When you wholesale a property virtually, you do all the work using your phone and computer. You never visit the property or do in-person meetings. You also don’t need to worry about repairs.
You can automate your virtual wholesaling business and eliminate all of the grunt work, saving yourself valuable time. The best part is that virtual wholesaling allows you to do deals anywhere in the US.
Virtual wholesaling takes wholesaling it to the next level. Tools and technology make it so easy to do real estate investing without doing a lot of the boots-on-the ground grunt work.
A Sustainable Model
But how do you turn a single virtual wholesaling deal into a successful business?
First, develop a network. You need to know buyers and sellers. Think of each buyer and seller as a potential long-term business partner. Some sellers may own more than one property. And buyers are investors, so they are looking for other properties to buy.
This means you need a business-building mindset. You want to make a profit, but keep your numbers in balance and grow your business by making sure each deal is a win-win-win. This will help you build a reputation that makes buyers and sellers eager to work with you again.
Second, think about your marketing strategy. You need a way to find motivated sellers. You need a way to find buyers. Do some research on wholesale marketing. You could use direct mail, internet marketing, door knocking, bandit signs or another approach…
And know this, if you are virtual wholesaling you can always hire someone in the area to do your marketing legwork (putting up bandit signs, knocking on doors or anything else you need done). While you decide on a strategy, set a marketing budget. Then watch to see what tactics bring in leads and deals.
1. Market to find motivated sellers and set up wholesaling deals.
2. Develop a network of buyers and sellers.
3. Automate your virtual wholesaling business to save even more time!
Cris Chico
is a successful real estate investor in Florida who specializes in wholesaling in local and long distance markets. Over the last two years he successfully flipped 116 properties and generated over $1,452,108 in profits. He rarely personally inspects any of the properties that he flips or meets with any buyers or sellers. In fact, most of the markets that he operates are thousands of miles away.