How does wholesaling work, step by step?
A wholesaler finds a motivated seller, works out the home’s after-repair value and repair costs, signs a purchase agreement at a price that leaves room for a buyer and a fee, finds a cash buyer, and then assigns the contract or arranges a double close. A title company or closing attorney completes the sale.
Each step protects the next one. A price that is too high leaves no room for a buyer, and a contract without an inspection period leaves the wholesaler exposed if no buyer appears.
The steps
- Find a seller who needs a fast, simple sale.
- Look up the property and estimate its after-repair value (ARV) and repair costs.
- Calculate the most you can offer and still leave room for the buyer and your fee.
- Sign a purchase agreement that allows assignment and includes an inspection period.
- Market the deal to your cash buyers with the numbers and photos.
- Assign the contract to the buyer, or buy and resell in a double close.
- Close with a title company or closing attorney and collect your fee.
Common mistakes
- Signing before you know the ARV and repairs well enough to price the deal.
- Waiting until the contract is signed to think about who will buy it.
- Letting the inspection period lapse while still looking for a buyer.
More questions
Which step takes the longest?
Finding a seller who is ready to sell at a workable price usually takes the most time, because most leads need several conversations. Once a contract is signed, the clock runs on the inspection period.
Can I skip the inspection period?
You can, but you take on the risk of losing your deposit if no buyer appears. An inspection period is what lets you exit cleanly if the numbers or the buyers do not work out.
Do I need a title company before I sign?
It helps to know which title company or closing attorney will close the deal before you sign, because some will not handle assignments or double closes. Name them in the contract if you can.