Your First Wholesale Deal: A Step-by-Step Checklist

Step 1: Learn your market. Pick one zip code or one neighborhood. Study it for two weeks. Know the average home prices, typical rents, what renovated homes sell for, and who is buying. You cannot evaluate deals in a market you do not understand.

Step 2: Find a motivated seller. The most accessible sources for beginners: driving for dollars (look for vacant, overgrown, or damaged properties), Craigslist FSBO listings, county pre-foreclosure lists, and expired MLS listings. You need volume here — expect to contact 50-100 leads before getting one deal under contract.

Step 3: Analyze the deal before making an offer. Run your ARV analysis with at least 3 comparable sales. Estimate repairs using our walkthrough guide. Calculate the maximum you can pay using the 70% rule: MAO = ARV x 70% - Repairs - Your Assignment Fee.

Step 4: Make your offer. Present a written offer at or below your MAO. Use the standard purchase contract for your state (TREC 1-4 in Texas). Include an option period or inspection contingency — this is your safety net to back out if the deal does not work. See our contracts guide.

Step 5: Get the contract signed. Once the seller accepts, you have a binding agreement. Deposit your earnest money and option fee (if applicable) as specified in the contract. Note every critical date: option period end, earnest money deadline, financing contingency deadline, and closing date.

Step 6: Take property photos. Walk the property with your phone and take 15-25 photos covering every room, the exterior, and any notable damage or features. Good photos are the single biggest factor in getting buyer responses.

Step 7: Prepare your marketing package. Create a deal page with photos, property specs, your ARV analysis, repair estimate, and asking price. See our marketing package guide for what to include.

Step 8: Find buyers. Run an investor search for landlords and flippers near the property. Skip trace the top 30-50. Also reach out to your personal network, local REI groups, and any existing contacts from previous conversations.

Step 9: Blast the deal. Send your deal to your buyer list via email and SMS using the templates in our guide. Send the VIP blast first (24 hours before general), then the full list blast.

Step 10: Follow up aggressively. Call every warm lead (opened email, clicked deal page, responded to text). Follow up with non-openers after 24 hours with a new subject line. Schedule walkthroughs for interested buyers.

Step 11: Collect and compare offers. Have buyers submit written offers with: price, proof of funds, closing timeline, and contingencies. Compare offers on all four factors, not just price. A cash buyer at $2K less who can close in 10 days is often better than a hard money buyer at full asking who needs 30 days.

Step 12: Accept the best offer and sign the assignment contract. The assignment contract transfers your rights in the purchase agreement to the end buyer. It specifies your assignment fee. Have a real estate attorney review your first assignment contract — template contracts are available online, but legal review costs $200-$500 and prevents expensive mistakes.

Step 13: Collect buyer's earnest money. The end buyer should deposit earnest money (typically $1K-$5K, non-refundable for assignments) with the title company within 1-3 business days. Do not consider a deal sold until earnest money is deposited.

Step 14: Open title. Send both contracts (your original purchase contract and the assignment contract) to an investor-friendly title company. They handle the title search, prepare closing documents, and coordinate the closing.

Step 15: Monitor the timeline. Stay in contact with the title company, seller, and buyer throughout the closing process. Address any title issues, document requests, or scheduling problems immediately. Do not be passive — deals die from neglect during the closing phase.

Step 16: Attend closing and collect your fee. On closing day, the end buyer funds the purchase. The title company distributes proceeds: seller gets their price, you get your assignment fee, everyone pays their closing costs. Your fee is wired to your account, typically same day or next business day.