Virtual Wholesaling in Real Estate: A Comprehensive Guide

Real estate wholesaling is a potentially high-profit area of real estate investing that doesn’t require you to pay anything. Instead, you’ll sign a purchase contract on an under-market property and then re-assign the contract to the final buyer, making a fee in the process. Virtual wholesaling allows you to use the same methodologies without being physically present on-site. Read on to understand how virtual wholesaling real estate works and whether it fits with your investing goals. 

In wholesaling, you’ll sign a purchase contract for a property, then reassign it to another investor or final buyer for a higher price. The difference (minus expenses) is your profit. For example, if you sign a purchase contract for a commercial office space for $300,000, then reassign it to another investor for $330,000, you’ve made $30,000 in gross income. Typical wholesaler fees are 5% to 10% of the total property price. 

Real estate wholesalers often look for distressed properties priced below market value to maximize returns. These properties often need significant renovation, and the owner is often motivated to sell directly to a wholesaler instead of through a real estate agent.

Virtual wholesaling is the same concept as traditional real estate wholesaling, except that you don’t have to be physically present at the real estate site or wholesale where you live. Instead, you’ll use the internet, email, digital signatures and Zoom calls as needed to close the deal. 

In theory, you’ll have unlimited monetization opportunities with virtual wholesaling. Whether you wholesale one property per year or one per week is up to your skill and the options you locate.  Average wholesaling profits are $5,000 to $10,000 per deal or about 5% to 10% of the property value. 

Starting virtual wholesaling of real estate involves in-depth market research and networking to establish connections, but the growth potential is unlimited. 

If you’re interested in virtual wholesaling of real estate, this step-by-step guide can help you get started. 

Begin by researching and analyzing target markets. Use online tools and data sources to assess market trends, property values and demand. Talk to local real estate agents and network with other wholesalers to understand what to look for and where to find off-market opportunities. 

At this stage, check local market regulations to understand whether you need a wholesaler’s license or registration to reassign contracts in a specific area. 

Establish connections with local real estate professionals, including agents, appraisers and contractors. A strong network enhances your ability to gather accurate information about properties. Attend regional real estate investing conferences and join online groups to continue to build your network. 

Employ online marketing strategies, such as search engine optimization (SEO) and social media campaigns, to generate leads. You’re offering a valuable service to motivated sellers. Focus on distressed properties or motivated sellers. 

You can also generate leads by paying someone to drive through target neighborhoods and reach out to owners of properties with deferred maintenance, asking about opportunities. Also consider specialized sites for real estate wholesalers with a dedicated suite of tools like PropStream, LandGlide, Realeflow and DealMachine.

Leverage virtual tours, photos and property reports to evaluate the condition of potential deals remotely. Consider working with a local real estate agent or appraiser who can give you their professional opinion on the state of the property. 

Engage in effective negotiation to secure properties at favorable prices. Once agreed upon, ensure contracts are assignable to other buyers, as this is the essential point for real estate wholesaling. 

Craft compelling property listings using high-quality images and detailed descriptions. Leverage online platforms to attract potential buyers, including Zillow, Realtor.com and others.

When a buyer expresses interest, assign the contract to them for a fee. This fee serves as your profit. Generally, the wholesaler’s fee will be 5% to 10% of the property value. 

Facilitate the closing process between the buyer and the seller. Ensure all legal requirements are met. In most wholesaling transactions, closing can take seven to 30 days depending on the buyer and seller’s situation. 

As you gain experience, consider expanding your operations to different markets and diversifying your investment portfolio across types of wholesale properties and real estate investments. 

The advantages of virtual wholesaling come down to the flexibility to earn real estate investment returns from home. Here’s why you might consider virtual wholesaling:

Virtual wholesaling breaks down geographical barriers, allowing investors to tap into lucrative markets nationwide without being limited by their physical location.

Traditional real estate transactions often involve significant costs, such as travel expenses and office overheads. Virtual wholesaling eliminates many costs, contributing to higher profit margins and simplified administration and management.

Investors can access a broader range of properties, increasing the likelihood of finding profitable deals that align with their investment goals. Instead of limits based on where you can drive, you’re free to wholesale across the country or around the world. 

Online platforms and social media channels provide efficient avenues for marketing properties, reaching a wider audience of potential buyers and sellers.

Virtual wholesaling allows investors to work on their own schedules, making it an ideal option for those with other commitments. You can do virtual wholesaling as a side hustle while working full time or around scheduling needs like children’s school. 

One of the biggest attractions of virtual wholesaling is that you can get started with no money. You can do it part-time, on weekends or build a full-time virtual wholesaling business. Take virtual wholesaling real estate step by step and be patient to locate the best opportunities. With time, it can be a fulfilling career and a profitable income stream. Consider also managing rental properties, real estate investment trusts (REITs), buying your first rental property or real estate crowdfunding for other real estate opportunities.