Wholesaling Guide
Make $5K-$50K per deal without buying properties or using your own money
Quick Definition: Wholesaling is finding discounted properties, putting them under contract, then selling that contract to an investor for a fee.
How Wholesaling Works
- Find Distressed Property: Motivated seller, below market value
- Negotiate Contract: Get property under contract at wholesale price
- Find Buyer: Investor who wants the property
- Assign Contract: Transfer your rights to buyer for assignment fee
- Close Deal: Buyer closes, you get paid
Why Wholesale?
Advantages
- Little to no money needed
- No credit requirements
- No renovation work
- Quick profits (30-60 days)
- Learn the market
- Build buyer list
Challenges
- Finding good deals
- Building buyer list
- Legal complexities
- Competition
- Seller education
Finding Motivated Sellers
Marketing Methods
- Direct Mail: Absentee owners, probate, pre-foreclosure
- Bandit Signs: "We Buy Houses" (check local laws)
- Cold Calling: For Sale By Owner, expired listings
- Digital Marketing: PPC, SEO, social media
- Networking: REIA meetings, other wholesalers
Target Properties
- Distressed condition
- Vacant/abandoned
- Divorce situations
- Probate/inheritance
- Pre-foreclosure
- Tax delinquent
- Tired landlords
The Perfect Wholesaling Formula
Calculate Your Offer
ARV × 65% - Repairs - Your Fee = Offer Price
Example:
- ARV: $200,000
- 65% of ARV: $130,000
- Repairs: $30,000
- Your Fee: $10,000
- Max Offer: $90,000
Building Your Buyer List
Where to Find Buyers
- Cash buyers at foreclosure auctions
- "We Buy Houses" signs
- REIA meetings
- LinkedIn real estate groups
- Local meetups
- Property management companies
Qualifying Buyers
- Proof of funds
- Closing history
- Target properties
- Geographic preferences
- Profit requirements
Next Steps
Ready to start wholesaling? The First Flip Starter Kit includes:
- Buyer list spreadsheet template
- Deal analyzer spreadsheet
- Contract templates
- Marketing materials
- Repair cost estimator