Real Estate Wholesaling

Find distressed properties and assign contracts to investors for fees

Startup Cost
$3,000-$15,000
Difficulty
Advanced
Time to Profit
4-8 months
Profit Potential
$15,000-$100,000/month

Overview

Real estate wholesalers earn $5,000-$15,000 per deal assigning contracts to cash buyers.

Closing 3-10 deals monthly generates $180,000-$1,200,000 annually with 85-95% margins (mostly profit after marketing).

In 2025, wholesaling provides path to real estate investing with minimal capital by finding motivated sellers, getting properties under contract, and assigning contracts to cash buyers.

Process involves marketing for motivated sellers (direct mail, driving for dollars, cold calling), negotiating contracts at 60-70% of ARV minus repairs, building cash buyer list of investors and flippers, assigning contract for assignment fee ($5,000-$15,000), and closing through title company.

Successful wholesalers build large cash buyer lists (100+ investors), consistently generate motivated seller leads (500-1,000 monthly), analyze deals quickly and accurately, negotiate effectively with sellers, and close deals reliably.

No capital needed for deals (just marketing costs).

Some states require real estate license for wholesaling.

Virtual wholesaling possible in distant markets.

Challenges include finding consistent deal flow, seller objections, buyers backing out, and market competition.

Required Skills

  • Lead Generation
  • Negotiation
  • Property Analysis
  • Contract Knowledge
  • Networking
  • Sales Skills

Pros and Cons

Pros

  • No capital needed for deals (assign contracts)
  • Fast profits (30-45 days from contract to close)
  • Very high profit margins (85-95%)
  • Can do virtually in any market
  • Learn real estate without risk

Cons

  • Inconsistent income until deal flow established
  • Need large cash buyer list
  • Expensive marketing to find motivated sellers
  • Some states require real estate license
  • Competitive in hot real estate markets

How to Get Started

  1. Build cash buyer list (100+ investors and flippers)
  2. Set up marketing for motivated sellers (direct mail, bandit signs)
  3. Learn contract assignment and wholesaling in your state
  4. Analyze 50+ deals to understand pricing
  5. Get first property under contract at deep discount
  6. Assign contract to cash buyer for $5,000-$15,000 fee
  7. Scale marketing to generate consistent deal flow

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