What is wholesaling real estate?
Wholesaling is putting a property under contract with a seller, then assigning that contract to an end buyer for a fee, without ever owning the home. You are paid an assignment fee for finding and tying up the deal. See the glossary on wholesaling and assignment for the short versions.
What are the steps to wholesale a property?
There are five core steps, and the first one is the hard one.
- Find a motivated seller. An owner with a real reason to sell soon. This is the bottleneck.
- Estimate ARV and repairs. What the home is worth fixed up, and what it needs.
- Make an offer. Use the 70% rule so the numbers work for everyone.
- Get it under contract. Lock in the price and your right to assign.
- Assign to a cash buyer. Hand off the contract for your fee.
How do you make an offer that works?
Use the 70% rule: your max offer is roughly ARV times 0.70, minus repairs, minus your fee. That keeps room for the end buyer and for you. Run it in the ARV and wholesale calculator, and see the 70% rule explained for the full math.
What is the hardest part, and how do you solve it?
Finding motivated sellers is the bottleneck, and consistent outreach is the fix. Deals do not come from one good week, they come from working a targeted list every day. Most wholesalers cold call for exactly this reason, and a managed calling service keeps the pipeline full without you on the phones. See how to find motivated sellers.