Wholesaling 101

What Wholesaling Actually Is (Plain English)

Wholesaling is when a buyer finds your property, puts it under contract, and then sells that contract to an end investor — without ever actually taking ownership of the home.

Here's the simple version: A wholesaler is a middleman. They get your house under contract for a set price, then find a cash buyer (usually a landlord or flipper) who'll pay more for that contract. The difference between those two prices is the wholesaler's fee — called an assignment fee.

Example:

• You agree to sell your house for $120,000
• The wholesaler finds a flipper willing to pay $140,000
• The wholesaler pockets $20,000 at closing
• You get your $120,000 and you're done

You never deal with the flipper directly. The closing happens once, you get your check, and the wholesaler gets their fee. That's it. That's the whole model.

How the Process Works Step by Step

Step 1: Initial Contact. You reach out to a wholesaler (or they reach out to you through direct mail, social media, Google, etc.). They ask you some basic questions — condition of the property, how much you owe, your situation, your timeline.

Step 2: Property Walkthrough. A serious wholesaler will want to see the property in person or via photos/video. They're estimating what the house would be worth fixed up (ARV — After Repair Value) and what it'll cost to fix it. That math determines what they can pay you.

Step 3: You Receive an Offer. The offer will be in writing — a purchase and sale agreement. It'll include the price, the closing timeline (usually 14–30 days), and an assignment clause that allows them to transfer the contract to another buyer. Read this carefully.

Step 4: The Wholesaler Finds a Buyer. Once you're under contract, they go market the deal to their buyer list — investors who are looking for exactly this type of property. A good wholesaler has this list already built.

Step 5: Closing. You close at a title company. You sign your paperwork, the end buyer funds the deal, the title company cuts your check. You walk away. Done.

Total time from offer to close: typically 14 to 30 days. Sometimes faster.