The Ultimate Guide to Virtual Wholesaling: A Modern Approach to Real Estate Investing
- Soraima
- Apr 1
- 5 min read
By Soraima April 01, 2025
One of the most notable trends is virtual wholesaling, a method that allows real estate investors to buy and sell properties without physically being in the location where the deal is happening.
In this blog post, we'll break down what virtual wholesaling is, explain the steps involved, and highlight the advantages of this modern strategy. We’ll also provide resources for those who want to dive deeper into the topic.
What is Virtual Wholesaling?
Virtual wholesaling is a real estate investment strategy where an investor finds, secures, and flips properties without physically being present at the property’s location.
Wholesalers act as middlemen by contracting properties at a discounted price and then selling the contract to another investor or buyer for a profit. The key element here is that the wholesaler doesn’t take ownership of the property — they just transfer the rights to purchase the property to someone else.
In plain language: Virtual wholesaling allows you to flip houses without ever visiting them. All the work, such as finding deals, negotiating, and assigning contracts, happens online or via phone, while the actual buying and selling happen remotely.
How Does Virtual Wholesaling Work?
The process of virtual wholesaling involves several key steps, but unlike traditional wholesaling, it can be done from virtually anywhere in the world. Here’s a breakdown of the typical steps involved:
1. Choose Your Target Market
First, you'll need to select a real estate market that you want to work in. This could be a city or neighborhood you're familiar with or an area with a strong real estate market. You don't need to be physically present in the market, but you do need to research and understand the local market dynamics.
Tools like Zillow, Realtor.com, and Redfin are great for researching properties and prices in different markets. Additionally, platforms like PropStream or DealMachine help virtual wholesalers find distressed properties (often the target for wholesalers).
2. Find Motivated Sellers
Finding sellers who are in a distressed situation (such as foreclosure, divorce, or financial hardship) is key to wholesaling. These sellers are often more willing to sell at a discount. Virtual wholesalers use online resources to identify leads.
Virtual marketing tools like Facebook Ads, Google Ads, and direct mail campaigns are excellent for reaching potential sellers remotely. Websites such as Craigslist, Auction.com, and Foreclosure.com can also provide valuable leads.
3. Negotiate and Secure the Property Under Contract
Once you identify a property, the next step is negotiating a purchase price with the seller. This is often done over the phone or via video call. You’ll need to determine a price that’s low enough to allow for a profitable resale but still fair to the seller.
Signing the purchase agreement can be done electronically via e-signature services like DocuSign or HelloSign.
4. Find a Buyer (End Investor or Cash Buyer)
Once you have the property under contract, you need to find an end buyer — typically a rehabber or another investor interested in flipping or renting the property.
Virtual wholesalers often use their online networks, such as Real Estate Investment (REI) Facebook groups, LinkedIn, or BiggerPockets to connect with investors. Email marketing is also a popular way to send property deals to a list of potential buyers.
5. Assign the Contract or Close the Deal
If you have an end buyer lined up, you’ll assign the contract to them for a fee (usually a percentage of the sale price). The buyer will then close on the property, and you’ll collect your wholesale fee.
The whole transaction can be done remotely through the use of digital tools, from contract signing to closing documents.
Advantages of Virtual Wholesaling
There are several benefits to getting involved in virtual wholesaling, particularly in today’s increasingly online-driven world.
1. No Need for Physical Presence
One of the biggest advantages of virtual wholesaling is that you don’t have to visit properties or be present in the market you’re working in. This opens up opportunities to invest in markets across the country or even globally, without being limited by geography.
2. Lower Costs
Virtual wholesalers don’t need to invest in office space, travel costs, or local team members, which can significantly reduce overhead. The tools needed for virtual wholesaling, such as CRM software and marketing platforms, can often be used from anywhere and are relatively inexpensive compared to traditional real estate investing.
3. Scalability
Virtual wholesaling can be scaled more easily. You’re not bound by location, so once you’ve figured out a system that works, you can apply it to multiple markets, generating leads and contracts across different cities and states.
4. Access to Broader Networks
Virtual wholesaling allows you to tap into a vast network of investors, contractors, and sellers from all over the country. You can leverage online platforms and social media to connect with people who you might not have encountered in a local market.
5. Flexibility
Virtual wholesaling offers flexibility, enabling you to work from anywhere. You can operate on your own schedule and even balance it with other investment activities or jobs.
Examples of Virtual Wholesaling Success
Example 1: Wholesaling in a Remote Market - A wholesaler from California wanted to break into the Atlanta market but couldn’t afford to travel or relocate. Using tools like PropStream and DealMachine, they identified distressed properties in Atlanta, contacted sellers, negotiated deals, and assigned the contracts to local investors. They’ve now expanded their reach to several other cities, all while working from home.
Example 2: Using Facebook Ads for Lead Generation - A virtual wholesaler in Texas uses Facebook Ads to generate motivated seller leads in various markets, including Florida and Ohio. The leads are nurtured via email campaigns, and deals are closed using online signatures and digital transaction management software.
Resources for Learning More About Virtual Wholesaling
BiggerPockets: One of the best online resources for real estate investors. The BiggerPockets blog and forum have numerous articles and discussions on virtual wholesaling.
Wholesaling Inc.: A comprehensive platform offering virtual wholesaling courses, training, and resources for aspiring investors.
DealMachine: This platform allows investors to drive for dollars digitally, find distressed properties, and build an online wholesaling business.
PropStream: A powerful real estate software used to find distressed properties and run comps, perfect for virtual wholesalers.
REIPro: Another useful software for finding leads, managing deals, and learning virtual wholesaling strategies.
Virtual wholesaling has revolutionized the way investors approach real estate.
By utilizing digital tools and leveraging online networks, investors can find profitable deals without the need for physical presence.
This method offers flexibility, scalability, and the ability to tap into broader markets, making it an appealing option for both seasoned and new investors.
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