Wholesaling

Find distressed properties under contract, then assign that contract to a buyer for a fee. No rehab, no holding costs — but margins depend entirely on finding deep enough deals.

How It Works

You put a distressed property under contract at a below-market price, then assign your equitable interest to a cash buyer (usually a flipper or landlord) for an assignment fee — typically $5,000–$30,000. No financing needed, no closing on the property yourself.

The challenge: finding sellers motivated enough to accept deep discounts requires consistent marketing, strong negotiation, and a real understanding of ARV and repair costs. Most people overestimate how many deals they can find.

The Math That Has to Work

• ARV: After Repair Value — what the property is worth fixed up
• MAO formula: ARV × 70% − Repairs − Your fee = Max offer
• Repair estimates: Must be accurate — your buyer will back out if they don't work
• Assignment fee: Must leave room for the buyer to profit

What You Actually Need

• A consistent lead source (direct mail, driving for dollars, cold calling, PPC)
• A vetted buyer's list — investors who close fast with cash
• A solid purchase contract with assignability language
• Understanding of your local market values

What Kills These Deals

• Overestimating ARV and underestimating repairs
• Not having a buyer ready — time kills deals
• Sellers who back out when they realize they're not working with a buyer
• Legal/licensing issues in states that require a license to wholesale

Have a wholesale deal or want to understand the numbers? Send it over and let's evaluate it.