Hey this is Raji here. By now you probably know whoI am. I am a virtual wholesaler. Now I don’t want to blabber you to boredom but I will explain to you here shortly not only what wholesaling is but what virtual wholesaling is and how you.. Just like us can be doing it successfully in no time. In this short article I will take you by the hand and explain everything real estate related that way when you finish reading you will be equipped not only with overall knowledge about the subject but also the tools needed to succeed in this very competitive industry. In short wholesaling is finding off-market properties at a discount. Once you run your numbers and it’s a deal you will need the homeowner to sign a contract with you for you to buy their property. You will then have what is called “Equitable Interest”. You will then assign such a deal to an end investor who will pay you a commission for finding him a deal. Now let’s answer this last question before I teach you what steps to take in order to find your first deal. What is virtual wholesaling? Virtual wholesaling is a game changer. It refers to the practice of practicing real estate wholesaling from anywhere in the world. We are currently in 2021 meaning by now technology and COVID have expedited remote work by a decade. You can now send and sign contracts virtually. You can also have others go take pictures of properties.for you. With all that being said you can delegate the entire process. From A to Z. Without much ado let’s get to it
Let’s start with what’s arguably the most important aspect of wholesaling which is list pulling. So where can you get your lists from? There are various ways. The most famous one over the years has been driving around looking for distressed looking properties. You can also walk right into your county’s office and request a list of homeowners entering foreclosures soon. Now we do things just a little bit differently here in HMP. As previously said we do virtual wholesaling so we don’t really have time or even the will to drive around or walk into the county’s office. We pull lists of vacant, pre-foreclosures and much more from Propelio. This company gathers public records from all over the counties and cities in the USA and gives you 10,000 records per month for only $99.This saves you hours and is for the most part very efficient. They also have a great comp tool which we’ll explain later.
I began this short article by telling you I am a virtual wholesaler so that will definitely be a prevailing theme throughout this read. With that being said. Many wholesalers like to go driving for dollars or D4D in short. What this refers to is driving around town looking for run down homes. Run down homes usually imply neglect which means the owner does not really care about the property. But..but Raji. You said you do it all virtually.right? Well yes. The conventional route is to drive physically but that limits you to a geographical area and it’s very time consuming and not very scalable. What we do instead here in Home Market Pro is we use a software called DealMachine. Deal Machine is similar to Google Maps in a lot of aspects but differs in two. 1) It updates much faster than Google Maps which means it is almost as if you are scrolling through the real streets (not maps from two years prior) and 2)If you click on the property it’ll actually save it to a list. Once you have a decent amount of rundown houses compiled onto a list you can then reach out to them and start closing deals $$$.
So now that you have compiled your lists either from Propelio or by virtually driving for dollars using Deal Machine. You should have a list of minimum 500 contacts (remember it’s a numbers game). Let’s first go over what skiptracing is. Skiptracing is the process of finding someone’s information. This was commonly done by private investigators or credit card companies before but for the past decade or so investors have used this process to find the personal information of homeowners and reach them with offers for their property. There are multiple routes you could take and it all boils down to your budget. The cheapest route is to use the website TruePeopleSearch dot com. You can simply type in the address that you’d like to investigate and it’ll give you 3-5 possible phone numbers. Pick up the phone and call them. On the other side of the spectrum is BatchSkipTracing. They cost 0.20 per lead but are up to 96% effective (We used to use them with a lot of success). I say I used to use them because for the past 6 months we’ve been using LinkREI. They are about 93% accurate and only cost 7 cents per lead. If you have a bulky list we definitely recommend LinkREI.
So by now you should have a list, you should already have skip tracing them and now you are ready to contact them.But how? You can call or text them. If you decide to call we recommend Google Voice or TextNow (It’s free). Don’t use your real number for legal and organization purposes. If you want to filter who could and who isn’t interested you could simply text blast them and take it from there. Two softwares we’ve used in the past have been LeadSherpa ($500) and Textedly (various prices but avg $200). If you wish to text them but not text blast them you could always go the free route with TextNow.
So by now you should already have contacted your list of homeowners. Not all of them will be eager to sell right away (some might even send some #$!!!* your way if you know what I mean) but it usually takes time and persistence. They need to build rapport with you and that is developed by constantly reaching back to them over and over again. But how can you keep up? We use what is called a CRM (Customer Relationship Management). The free version is using Google Sheets but as you scale and call or text more and more people sheets begin losing its efficiency. Another free to start version which we still use to this day is Podio. It’s a perfect way to keep track of all your conversations and filter out your pipeline.
This business is not easy (especially not as easy as the gurus make it out to be) but if you follow through and are persistent chances are you will get a home owner willing to sell his house for a cash offer. When that happens you need to send him a contract but since we are doing it all virtually it’ll need to be done via the internet. The leading contract sending / signing software in the market is DocuSign. Us at Home Market Pro however like Hello Sign better. It costs $22 per month but it opens the door to a million possibilities.
Assigment Of Contract
When the homeowner signs your virtual contract you will then have something called ‘Equitable Interest’ which means you can assign that contract onto a cash buyer for a fee. But how do you find reliable cash buyers? It comes with time and experience (always keep adding cash buyers to your list) but if you are first starting out the following are some simple yet effective methods to assign deals. 1) Send your deal to email@example.com we have thousands of already proven cash buyers. Send us your deal and once we assign it we’ll go 50/50 in the assignment fee. 2) Join Facebook investor groups and post your deals there. 3)Post them on Craigslist 4) Go on meetup.com and join a REI group (Real Estate Investing).