🚀 Getting Started with Wholesaling

New to real estate wholesaling? This guide will walk you through everything you need to know to find your first deal, work with investors, and earn your first wholesale fee using the RE-AI platform.

💡 What is Real Estate Wholesaling?

Real estate wholesaling is finding discounted properties and connecting them with investors who will buy and renovate them. You act as the middleman and earn a fee for your work.

How It Works (Simple Version)

1

Find a Property

Motivated seller wants to sell quickly below market value

2

Get Under Contract

Negotiate and sign a purchase contract with the seller

3

Find an Investor

Locate a fix-and-flip investor who wants to buy the property

4

Assign the Contract

Transfer your contract rights to the investor for a fee

5

Get Paid at Closing

Escrow company pays you the assignment fee

💡 Key Point: You never actually buy the property. You control it with a contract and assign that contract to an investor. This is called "contract assignment" or "wholesaling."

🔄 The Complete Workflow

Using RE-AI Platform

  1. System Finds Deals Automatically

    RE-AI scans monitored ZIP codes every hour and identifies flip opportunities with 10%+ ROI. Check your email or the Flip Deals page for new listings.

  2. Review & Analyze on Flip Deals Page

    Log in to Flip Deals page. Sort by Grade A/B and 🔥 HOT motivation. Click properties to review numbers and photos.

  3. Deep Dive on Property Page

    Click "Full Analysis" to open the property page. Review the Wholesaler Analysis tab to see your offer strategy and profit potential.

  4. Start Deal in CRM

    Click "Start Deal" button. System creates a lead (listing agent), deal record, and task with agent contact info and call script.

  5. Contact Listing Agent

    Call the agent using the script provided. Ask about seller motivation, timeline, and price flexibility. Make your starting offer if qualified.

  6. Negotiate & Get Contract

    Work with the agent to negotiate price. Once accepted, sign a purchase contract with assignment clause. Your contract price should be 70-75% of ARV minus renovations.

  7. Find Your Investor

    Contact investors from your buyer list or co-wholesale with another wholesaler. Present the deal showing their profit potential.

  8. Execute Assignment

    Once investor commits, sign assignment agreement. Submit to escrow company along with your original contract.

  9. Closing Day

    Investor funds the purchase. Seller gets their money. Escrow company wires your assignment fee (typically $5K-$15K).

💡 Timeline: From finding a property to getting paid typically takes 2-6 weeks depending on your contract terms and how quickly you find an investor.

🧮 Understanding the Numbers

Example Deal Breakdown

Property: 725 N Main St, Las Vegas

List Price $210,000 What seller is asking
After Repair Value (ARV) $276,000 Value after renovations completed
Renovation Cost $28,000 AI estimate from photo analysis
Your Starting Offer $170,000 72% ARV - renovations
Your Target Offer $175,000 75% ARV - renovations
Your Maximum Offer $180,000 78% ARV - renovations
Investor Can Pay $185,000 80% ARV - renovations

Your Profit Scenarios:

  • Best Case: Contract at $170K, assign at $185K = $15,000 profit 💰
  • Good Case: Contract at $175K, assign at $185K = $10,000 profit ✅
  • Okay Case: Contract at $180K, assign at $185K = $5,000 profit 👌

Key Formulas

ARV Calculation:

ARV = Average of 3-5 recently sold, fully renovated comparable homes

Investor's Maximum Purchase Price:

Max Price = (ARV × 80%) - Renovation Cost - Investor Profit

Your Contract Price Range:

Starting: (ARV × 72%) - Renovation Cost

Target: (ARV × 75%) - Renovation Cost

Maximum: (ARV × 78%) - Renovation Cost

Your Assignment Fee:

Fee = (Investor Price) - (Your Contract Price)

⚠️ Important: Always leave room for the investor to make profit (15-20% ROI minimum). If you take too much margin, investors won't work with you again.

🎯 Finding Your First Deal

What Makes a Good First Deal?

  • 🎓 Grade A or B

    Start with high-quality deals that are easier to sell to investors

  • 🔥 HOT Motivation

    Sellers who just reduced price or listed recently are more motivated

  • 💰 $8K+ Fee Potential

    Your first deal should be worth your time. Target $8K-$15K assignment fees.

  • 📊 Clear Numbers

    ARV confidence 0.7+, recent comparable sales, renovation scope is clear

  • 🏘️ Good Neighborhood

    Start in areas where investors actively buy. Avoid high-crime or declining areas.

Your First Week Action Plan

Day 1-2: Learn the System
  • Watch the hourly email reports
  • Log into Flip Deals page daily
  • Review 10-20 properties
  • Get comfortable with the numbers
  • Understand ARV, renovation costs, ROI
Day 3-4: Make Contact
  • Pick 5 Grade A/B deals
  • Call listing agents (10 AM - 2 PM best)
  • Use the script in CRM task
  • Qualify seller motivation
  • Make verbal offers on 2-3 properties
Day 5-7: Follow Up & Network
  • Follow up on pending offers
  • Join local REIA meeting
  • Connect with 5-10 investors
  • Ask about their buying criteria
  • Build your buyer list
💡 Reality Check: Most wholesalers talk to 10-20 agents before getting their first contract. Don't get discouraged! Each "no" is practice for the "yes" that's coming.

👥 Finding Fix-and-Flip Investors

You need a buyer list BEFORE you get your first contract. Start building relationships now.

Where to Find Investors

  1. Local Real Estate Investment Associations (REIAs)

    Google "[Your City] real estate investors association". Attend monthly meetings. Bring business cards. Tell people you're a wholesaler and ask about their buying criteria.

  2. Facebook Groups

    Join "[Your City] Real Estate Investors", "[Your City] House Flippers", "Wholesale Real Estate [Your State]". Post your deals. Engage in discussions. Build relationships.

  3. BiggerPockets.com

    Free forum with thousands of real estate investors. Search for investors in your market. Send direct messages with your introduction and buying criteria questions.

  4. "We Buy Houses" Signs

    Those bandit signs you see on street corners? Call them. They're active investors. Introduce yourself as a wholesaler and ask if they'd like to receive deal flow.

  5. Foreclosure Auctions

    Investors attend courthouse foreclosure auctions. Network before/after auctions. These are serious buyers with cash ready.

  6. LinkedIn

    Search for "real estate investor [your city]" or "fix and flip [your city]". Connect and build professional relationships.

What to Ask Investors

  • What areas do you prefer to buy in? (ZIP codes)
  • What price range are you looking for?
  • What types of properties? (Single-family, multi-family, etc.)
  • What ROI do you need to make it worth it? (Usually 15-20%)
  • How do you fund deals? (Cash, hard money, etc.)
  • How quickly can you close? (7-30 days typical)
  • Can I send you deals as I find them?

Co-Wholesaling (Easier for Beginners)

If you can't find buyers, partner with an experienced wholesaler:

How Co-Wholesaling Works:

  1. You find the property and get it under contract
  2. Partner wholesaler has the buyer list
  3. They find the buyer and handle assignment
  4. You split the assignment fee 50/50 (or 60/40)

Example: $10K total fee → You get $5K, partner gets $5K

Benefit: Less profit, but higher success rate on your first few deals. Once you build your own buyer list, you keep 100%.

📄 Contract Assignment Process

What is an Assignment of Contract?

An assignment transfers your rights to buy the property from you to the investor. The investor steps into your place in the contract.

Step-by-Step Process

  1. Your Original Contract Must Allow Assignment

    Include this clause: "This contract is assignable" or "Buyer may assign this contract to another party". Some states require specific language - consult a real estate attorney in your area.

  2. Find Your End Buyer (Investor)

    Present the deal to your buyer list. First investor to commit with earnest money deposit gets it.

  3. Execute Assignment Agreement

    You and the investor sign an "Assignment of Contract" document stating:

    • Property address
    • Original contract purchase price
    • Assignment fee amount
    • New buyer (investor) information
    • Closing date
  4. Submit to Escrow/Title Company

    Send both documents to escrow:

    • Original purchase contract (you + seller)
    • Assignment agreement (you + investor)
  5. Coordinate Closing

    Escrow company handles:

    • Title search and insurance
    • Coordinating with all parties
    • Processing funds
    • Recording deed
⚠️ Legal Note: Assignment rules vary by state. Some states require you to be a licensed agent to assign contracts. Consult with a local real estate attorney before your first deal.

Escrow Company Selection

Three parties have input on which escrow/title company to use:

  • Listing Agent: May have a preferred company
  • Your Investor: May have a preferred company
  • You: Can suggest a company

Usually, you'll negotiate and agree on one company. Many agents and investors have established relationships with specific title companies.

💰 Getting Paid at Closing

How Payment Works

Money Flow at Closing:

Party Action Amount
Investor Brings funds to closing $185,000
You (Wholesaler) Receives assignment fee $10,000
Seller Receives sale proceeds $175,000
Escrow/Title Distributes all funds Holds all money

Math:

  • Investor pays: $185,000 total
  • Minus your fee: $10,000
  • Minus closing costs: ~$2,000-$3,000
  • Seller receives: ~$172,000-$173,000 (they agreed to $175K but pay some closing costs)

Payment Methods

  • Wire Transfer - Most common. Funds same day or next business day.
  • Cashier's Check - Pick up at title office or mailed. 1-2 days.
  • ACH Transfer - Direct deposit to your bank. 1-3 business days.

What You Need

Provide to escrow before closing:

  • Bank account information (for wire transfer)
  • Photo ID (driver's license)
  • Signed assignment agreement
  • W-9 form (for tax reporting)
💡 Tax Note: Assignment fees are taxable income. You'll receive a 1099 form from the title company. Set aside 25-30% for taxes or work with a CPA.

Typical Timeline

  • Day 1: Property closes, investor takes ownership
  • Day 1-2: Title company processes paperwork
  • Day 1-3: Your payment is wired to your account

Total time from closing to money in your account: 1-3 business days

🎯 Ready to Start?

Your Action Items Today:

  1. Log into RE-AI Platform

    Go to Flip Deals page and explore

  2. Review 10 Properties

    Get comfortable with the interface, numbers, and analysis

  3. Join Your Local REIA

    Google "[Your City] real estate investors association" and attend next meeting

  4. Find a Real Estate Attorney

    Get contract templates and understand your state's assignment laws

  5. Make Your First Agent Call Tomorrow

    Pick a Grade A deal, click "Start Deal", and call the agent

💪 You've Got This! Every successful wholesaler started exactly where you are now. The system handles the hard part (finding deals). You just need to make calls, build relationships, and follow the process.

📚 Related Help Topics

🏠 Flip Deals Page

Learn how to use the deals dashboard

📄 Property Page

Deep dive property analysis guide

📋 CRM System

Track and manage your deals

❓ FAQ

Frequently asked questions