A clear, practical walkthrough of real estate wholesaling — from finding a motivated seller to assigning the contract and getting paid.
Wholesaling real estate means getting a property under contract below market value and assigning that contract to a cash buyer for a fee — without ever owning the property. It's a popular entry point into investing because it needs little capital. Here's how it works.
The wholesaler finds a motivated seller, agrees on a price below market, and signs a purchase contract with an assignment clause. They then assign that contract to a cash buyer for an assignment fee — the difference between the contract price and what the buyer pays. The buyer closes; the wholesaler gets paid at closing.
This is where most of the work is. You need a steady flow of motivated sellers — owners with equity and a reason to sell. Investors find them by scoring owners on seller signals and reaching them with direct mail. See how to find motivated sellers.
Estimate the after-repair value (ARV), subtract repairs and your buyer's margin, and offer accordingly. Many wholesalers use the 70% rule as a starting point: max offer ≈ ARV × 70% − repairs.
Sign a purchase agreement with the seller that includes the right to assign the contract. This protects you and makes the assignment clean.
Bring the contract to a cash buyer from your buyers list and assign it for a fee. Build that buyers list early — investors, landlords and flippers who close fast.
Assignment fees vary widely by market and deal, commonly a few thousand to over ten thousand dollars per deal. Volume comes from consistent seller marketing, which is why automating the lead side matters so much.
In most states, yes — you're assigning a contract, not brokering a sale — but rules vary and some states regulate it closely. Always check your state's laws and consider disclosing your role. This is general information, not legal advice.
Score owners and mail the ones likely to sell.
Agree a price and sign with an assignment clause.
Hand the contract to a buyer for a fee.
The buyer closes; you collect the assignment fee.