Wholesaling connects motivated sellers with ready buyers—for a fee—without you swinging a hammer. Winning wholesalers run a real business: tight compliance, clean data, consistent lead gen, and fast dispositions. If you can price risk, communicate clearly, and protect everyone’s reputation, you can scale.
What is wholesaling—in plain terms
You negotiate a purchase agreement with a seller, then either:
- Assign the contract to an investor and get an assignment fee at close, or
- Double close (A→B→C), buying and immediately reselling—two closings, short interval.
Why it works: sellers get speed and certainty; buyers get vetted deal flow; you get paid for the match and the diligence.
Important: Laws vary by state/province. Some jurisdictions regulate assignments or require disclosure/registration. Always work with local counsel. This guide is not legal advice.
Choose your transaction model
Assign the contract
- Pros: minimal capital, fastest path to cash, simple paperwork.
- Watch‑outs: disclosure/marketing rules; some buyers/MLSs dislike assigned contracts; seller may balk at visible fee.
Double closing
- Pros: privacy on spread, more control, useful for larger profits.
- Watch‑outs: two sets of closing costs, short‑term funding (transactional lending), tight timing.
How I decide
- Small spread, clean title, friendly to assignments → assign.
Big spread, sensitive parties, complex title, retail‑adjacent exit → double close.
Deal math that keeps you out of trouble
- After‑repair value (ARV): what a renovated comp would sell for today in this submarket. Use recent, like‑for‑like comps only.
- Repair budget (R): get photos, video walk‑through, contractor text quotes. Add a 10–15% contingency.
- Buyer margin (BM): flipper/rental target. For flippers I underwrite 20–25% of ARV minus costs; for BRRRR/rentals I back into DSCR and yield.
Maximum allowable offer (MAO)
MAO = (ARV × Buyer discount) − R − Closing costs − Your fee
Guardrails: if your fee pushes the buyer below their margin, the deal will die in dispositions.
Step 1 – Pick a target market (narrow beats broad)
Niches where speed and certainty matter:
- Pre‑foreclosure/foreclosure timelines
- Vacant/abandoned homes
- Probate or inherited property
- Landlord fatigue (evictions, deferred maintenance)
- Code violations & tax delinquency lists
- Small multifamily (2–20 units) where pro buyers move quickly
Data to pull: absentee owners, years owned, equity bands, last sale date, unit count, code/tax flags. Build submarket heat maps for days‑on‑market and buyer activity.
Step 2 – Messaging that earns trust (and responses)
Most cards say, “We buy houses—cash.” I lead with the seller’s problem and a specific, local promise:
Postcard/letter
Hi , I live/work in . I buy properties as‑is and close on your timeline. If you’d like a no‑obligation offer or just numbers to compare, text me “OFFER” at . If I’m not the right fit, I’ll share my contractor and mover list free.
SMS opener (opt‑in, compliant)
Hi , Leni here. I’m looking at . Would it help to see cash‑offer and “list as‑is” numbers side‑by‑side?
Principles
- Be transparent on how you get their info.
- State that you’re not a brokerage unless you are.
- Offer paths other than “sell to me” to build credibility.
Step 3 — Build a multichannel lead engine
Combine 3–5 channels so you’re not hostage to one source:
- Direct mail (personalized, small batches, consistent cadence)
- Search + social ads (capture intent, retarget mail list)
- Cold calling / compliant SMS
- Referral flywheel (attorneys, property managers, contractors)
- Local community presence (meetups, door knocks, code office rapport)
Cadence example (first 45 days)
- Day 0 mail → Day 5 call → Day 12 SMS → Day 21 mail → Day 28 call → Day 42 mail.
Move responses into a CRM with dispositions: Warm / Nurture / Dead / Under contract.
KPIs I track weekly
- Response rate by list and message
- Cost per conversation and per signed contract
- Contract‑to‑close %
- Avg assignment fee / gross profit
- Days to disposition
- Buyer fall‑through rate
Step 4 – Qualify and grow your buyer list (before you need it)
Your list is your liquidity. Vet buyers on:
- Proof of funds and close history
- Renovation capacity (crews, permits, scope)
Decision speed and communication - Asset focus (flip vs hold, SFR vs small multi)
Where I find them
- Recent cash transactions (public records)
- Investor meetups and auction steps
- Title/closing attorneys and hard‑money lenders Contractors and inspectors with investor clients Driving for dollars: introduce yourself post‑reno
Maintain the list
Survey criteria quarterly. Tag by buy box (zip, beds/baths, price, rehab appetite). Remove tire‑kickers.
Step 5 – Keep the pipeline full with investor‑grade packages
When you contract a property, prep a clean packet:
- Address, photos, and a 2–3 minute video walk‑through
- Repair scope with line items and contingency
- Comps table (max 3–5, same school and construction type)
- Access instructions and showing windows
- Offer deadline and assignment fee disclosed (if applicable)
Dispo channels
- Curated email to segmented buyers
- Private listing page with all docs
- One‑day inspection window; highest and best by deadline
- Backup buyer queued
Compliance & ethics (protect your margin and your reputation)
- Use attorney‑reviewed contracts with clear assignment clauses and disclosures.
- Don’t market a property you don’t control. Market your equitable interest or double close.
- Respect do‑not‑call/text rules and privacy laws.
- Be honest about repairs; overstate issues rather than understate.
- Never pressure heirs or vulnerable sellers; earn referrals by doing right.
Common pitfalls I see
ARV optimism from cherry‑picked comps → deals die in dispo.
Fee first mindset → mis‑aligned with buyer margins.
List fatigue-hammering the same postcard for months without testing copy or cadence.
No capital plan for a forced double close.
Thin documentation—no photos, no scope, no credibility.
Tools I actually use
- CRM & dialer (with DNC compliance), simple website/landing pages
- Data provider for lists + skip tracing
- Photo/video capture + cloud folders
- Underwriting sheet with ARV/MAO guardrails
- Title/closing partners who understand assignments
FAQ
Do I need a licence?
Depends on your jurisdiction and activities. Some places require a real estate licence for marketing properties. Check locally.
How big should my first fee be?
Enough to pay for your next 2–3 marketing cycles. Many first deals land in the $5k–$15k range; focus on clean execution.
Can I wholesale small multifamily?
Yes. Underwrite as income property (rents, vacancy, CapEx, DSCR) and confirm assignability with the seller/lender.
Final take
Wholesaling isn’t a loophole; it’s a service business. Lead with empathy, price risk honestly, and communicate like a pro. Do that consistently, and the math works.
If you want, I’ll drop this into your CMS, set up a simple capture form for seller leads, and draft the email + LinkedIn promo to push it live.
