10.1.2025 PropStream
Disclaimer: PropStream does not offer legal advice. This article is for informational purposes only. We recommend conducting your own research or consulting legal professionals before engaging in virtual wholesaling of real estate.
| Quick Answer: Virtual wholesaling is putting a property under contract and assigning it to another buyer for a fee—all done remotely, without ever owning the property or meeting anyone in person. |
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Key Takeaways:
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Want to invest in real estate remotely with little to no money? Then virtual wholesaling could be for you. In this article, we’ll explain what it is, the pros and cons, how to start, and more.
Virtual Wholesaling Definition
In real estate, virtual wholesaling involves putting a property under contract and then assigning it to an end buyer for a fee—all from the comfort of your home. It’s wholesaling done remotely.
The basic strategy is this: You find a property with an owner who is willing to part with it at below market value (e.g., because it needs repairs or they’re motivated to sell). Then you draw up a purchase agreement that includes the right of assignment. After you and the seller sign, you then assign the contract to another investor for an assignment fee.
In other words, you never actually own the property you find, but you still earn a profit from facilitating the transaction.
Why Virtual Wholesaling Is Getting More Popular
Virtual wholesaling has become increasingly popular because it’s one of the easiest ways to explore real estate investing beyond your local market. You don’t have to view properties or even meet sellers in person. With the right tech and data, you can find, analyze, and close deals all online.
Want to hear about Virtual Wholesaling from an experienced wholesaler? Read about our PropStream Pros episode featuring Nathan Payne!
Pros and Cons of Virtual Wholesaling
That said, virtual wholesaling has its pros and cons. Here’s what to consider before trying it:
Pros
| Location flexibility | You can virtually wholesale real estate from anywhere. You’re not limited to your local market. |
| Low upfront costs | Your upfront costs are typically nonexistent or low, since you don’t have to make a down payment or even spend money on gas to drive to properties. |
| Scalability | Since you’re not limited to your local market, you can run multiple deals nationwide to scale your business. |
Cons
| Sight unseen risks | Without seeing a property in person, you’re more reliant on photos and local contacts to evaluate it for you. |
| Networking challenges | Developing relationships with local sellers, buyers, contractors, and title companies can be more difficult to establish remotely. |
| Steeper learning curve | Wholesaling in different markets means staying on top of multiple sets of real estate regulations and laws. |
How to Start Virtually Wholesaling Real Estate
To start virtually wholesaling real estate, consider these steps:
1. Choose a Market
Look for a market with strong investor demand and home sale activity. This will make it easier to assign contracts to buyers after finding deals. The last thing you want is to get stuck with a contract you can’t reassign, forcing you to buy a property you don’t actually want to own.
2. Build a Buyers List
Once you’ve chosen a market, build a list of potential buyers. Think home flippers, landlords, and other investors. This helps ensure you can move a contract quickly once you land a deal.
3. Find Motivated Sellers
Next, identify motivated sellers by focusing on homeowners with potential selling motivations. For example, those in pre-foreclosure or who have high equity. Such homeowners may be willing to sell at a discount to avoid credit damage or to cash in on their home equity faster.
4. Market to Sellers Remotely
Reach out to seller leads remotely via cold calling, direct mail, or email campaigns. You don’t need to meet owners in person to offer your services or to strike a deal.
5. Analyze the Deal
Before committing to a deal, carefully run the numbers. This means running comparables (aka comps) and estimating any repair costs with online data and photos. Above all, you must ensure there’s enough profit margin for you and the end buyer.
6. Get the Property Under Contract
If the deal looks good, negotiate a purchase agreement with the seller that includes an assignment clause, allowing you to transfer your purchase rights to another buyer.
7. Assign the Contract and Collect Your Assignment Fee
Finally, present the deal to your buyer list and assign the contract to the buyer willing to pay the highest assignment fee. This is how you maximize your profits as a wholesaler.
Find Cash Buyers and Motivated Sellers with PropStream
Now that you know how to virtually wholesale real estate, here’s how PropStream can help:
First, PropStream helps you find cash buyers with its Cash Buyers Lead List. This surfaces homeowners in your target market who’ve purchased their property with an all-cash offer and are, consequently, likely to be real estate investors. Use this strategy to build a cash buyer list.
Second, PropStream can help you find motivated sellers. With 165+ search filters and 20 dedicated Lead Lists, you can segment leads by potential selling motivations like liens, pre-foreclosure, tax delinquency, and more.
Lastly, PropStream provides a wealth of data on real estate values, condition, and ownership history to help you evaluate deals remotely. This can help you conduct due diligence and manage investment risk remotely.
PropStream even offers a Wholesale Value estimate on each Property Details page, powered by predictive AI!
Common Mistakes to Avoid
To increase your virtual wholesaling success, avoid these common pitfalls:
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