Wholesaling moves so quickly that a deal can get knocked off course by unseen events, much like a car hitting a patch of ice at 75, if you don’t know what you are doing. With the new coronavirus in our midst now and for the foreseeable future, the realities of the business are changing as much as the market.
Change doesn’t have to be bad. Indeed, this is an exciting time for buying and selling houses. Many people are looking to sell right now and, if you want to make wholesaling houses your full-time career, there’s plenty of opportunity. But, whether you are new to real estate investing or adjusting your business approach, you have to learn how to embrace social distancing practices.
Luckily, working with new health guidelines—and home sellers’ comfort levels—is more than possible and may even offer greater opportunities. Here’s how to start wholesaling virtually to take advantage of the new realities.
Why Wholesaling Matters Right Now
Let’s start with the basics. Wholesaling right now is probably more important than ever. There are a lot of people who are looking to sell before they are foreclosed upon. They might have recently lost their job, and even if they are getting forbearance on the mortgage, they are looking to shed excess costs and get some cash.
As a result, there are opportunities for real estate investors who remember the Great Recession of 2008. That created a huge market. The same is possible now and that’s where wholesaling comes in. You’re finding the right houses, buying them, and then turning them around to other investor-buyers. It’s not a huge return per deal, which is why you have to work in volume.
But, how do you work in volume in such a personal, human business when you have to do it virtually? That’s where you need some ingenuity.
What Virtual Wholesaling Requires
When you think about virtual wholesaling, you have to start by thinking about your wholesaling business plan in general. You need to carry out the same processes, just with a minimum of face-to-face social engagement. For instance:
1. A lot of high-quality leads developed without mingling in person
2. A plan for doing due diligence remotely
3. A way to close on the house with a minimum of contact
4. A ready network of buyers who are also committed to virtual communication
This all sounds pretty simple but it does take some thinking through. Let’s take a closer look at how you can accomplish all this.
Getting a good lead without a lot of competition is a challenge. Obviously, right now, you aren’t going to go door-to-door. You aren’t going to go to networking events or open houses. But, there are ways that you can get leads from motivated sellers for wholesaling virtually.
There are still a few auctions that happen in person and are therefore closed for a while, but many can happen solely online. Of course, these come with all the usual problems of sheriff auctions, like high costs, lots of competition, tons of risk.
Facebook groups, Twitter feeds, and other social media outlets are hopping right now. People are getting creative about selling their houses. But, of course, if you can find it online, so can everyone else.
This venue poses the same problems as social media, only with a little more potential information about each house. But, just as much potential scam.
Being part of an organization
Real estate investing associations (REIAs) or other organizations and franchises can offer some great networking potential—some with A LOT more than others, as we’ll see.
Remote due diligence
OK, you’ve got a lead. Huzzah! But…how do you go to the home to see if it is worth buying and can maybe be sold quickly? You probably can’t. Homesellers are, understandably, increasingly cautious about in-person contact—especially in their own home. That’s why it is really important to first establish a relationship built on trust.
But, you can have the owners give you a video tour. All they need is a phone and internet access. Remember, you aren’t going to be inspecting every inch of the foundation. You just need to get a decent look at it. Just walk them through what you need to see.
This is an area where virtual wholesaling really works for you. After all, you don’t need an army of contractors trooping in to look at light fixtures. You can just hire one inspector to come in, maintain social distance, wear gloves, and do her job. They’ll let you know enough about the house that you can start to make your decision.
Remember, that you don’t have to decide if this needs a master bathroom or three in order to meet someone else’s profit goals. You just have to evaluate if it is sellable.
A no-contact way to close the deal
The era of sitting in a room, signing papers, and shaking hands is over for the time being. Now is the time of e-signatures. The law has caught up with technology and those are valid. So, familiarize yourself with software like DocuSign where you can actually sign PDFs.
And, don’t just get familiar with using it. Learn how to teach it. Your sellers, and maybe even some of your buyers, might not be super-savvy or have the best tech. By walking them through it, you’ll provide a valuable service. After all, you are looking out for their health.
Virtual Networking With Buyers
One thing about wholesaling is that it is a people business. You meet professionals at events, form your networks, and build a relationship built on trust. If you don’t have that yet, it can be hard to get started. After all, communicating online is done through email, text, and chat.
We all know the problems with communicating through text. Meanings can be misunderstood. Things can fall through the cracks as messages go unreturned. Relationships can be hard to establish.
There are advantages to virtual networking, though. If you have people who trust you, deals can move very quickly. If you have established channels and aren’t just reaching out through social media or Craigslist, you already have some trust. They can be your end-buyers for wholesale deals.
But, how do you get good channels if you don’t already have them? You join pre-established networks. At minimum, these networks should offer:
- Ready buyers. You don’t have time to mess around with amateurs.
- Investors who understand the market. They know the iron is hot and it’s time to strike.
- People who understand the economics of wholesaling. You want buyers who know how to work with you so that everyone wins.
Not every network has it. But, some do.
The Best Way To Win At Virtual Wholesaling
I don’t want to understate how important it is to have experienced investors ready to go. If you don’t, and if you suddenly find yourself unable to sell, your business can dry up. You could lose your shirt. Thankfully, being an independently owned and operated HomeVestors® franchisee has allowed me to remain in business, with my shirt on.
See, this is an ideal opportunity for wholesalers, especially when you have to be remote. At HomeVestors, I’m plugged into DealVestorsTM, a network of investor-buyers, all professionals who are ready and eager to work. DealVestorsTM is a platform designed for wholesalers to sell houses, completely virtually.
And, these investor-buyers know that I’m worth my salt since I’m a HomeVestors® franchisee,
With this virtual wholesaling network I can upload my videos, talk shop, make deals, and get to work, all remotely. I can work fast and I can work easily. It makes wholesaling during a pandemic not only possible but also more efficient.
We don’t live in the best of times right now but we do live in a time of great potential if you can embrace the possibilities of virtual wholesaling. And the best way to do that is to become a HomeVestors® franchisee.
If you’re interested in wholesaling more effectively with virtual resources, request information today. It’s how you stay ahead of all the changes.
Each franchise office is independently owned and operated.