Wholesale Real Estate Step by Step
Wholesale real estate follows a repeatable 7-step process. Master each step, and you have a business that generates $5,000-$25,000+ per deal without ever owning property. This guide walks through each step with specific actions, timelines, and examples drawn from real wholesale transactions.
Step 1: Find a motivated seller (Days 1-ongoing)
Everything starts with finding a property owner who needs to sell below market value. Motivation comes from circumstances: pre-foreclosure, divorce, inherited property, tired landlord, job relocation, or deferred maintenance they cannot afford to fix.
Choose 1-2 marketing channels and commit to consistency:
- Direct mail: Mail 500-1,000 letters/postcards per month to targeted lists (absentee owners, pre-foreclosure, high equity). Budget $500-$1,500/month. Expect 0.5-3% response rate.
- Driving for dollars: Drive target neighborhoods 4-8 hours per week looking for distressed properties. Skip trace owners and call. Budget: gas money + $0.05-$0.10 per skip trace.
- Cold calling: Call targeted lists 2-4 hours per day. 100-200 dials produces 10-20 conversations and 1-3 leads. Budget: $0 if you do it yourself, $500-$1,000/month for a VA.
The key is consistency. Marketing once produces nothing. Marketing every week for 3 months produces a pipeline of motivated sellers who are at various stages of readiness. See our finding investment properties guide for all 10 channels.
Step 2: Talk to the seller (Day 1 of contact)
When a seller responds to your marketing, your goal is to understand their situation and determine if a deal exists. The conversation follows a simple framework:
Build rapport (2 minutes). Be friendly, genuine, and empathetic. "Thank you for calling. Tell me a little about your situation."
Qualify the lead (5-10 minutes). Ask: Why are you selling? How quickly do you need to sell? What condition is the property in? How much do you owe? What would you accept?
Set next steps. If the lead is promising, schedule a property visit or virtual walkthrough. If not, follow up in 30-60 days (their situation may change).
Step 3: Analyze the deal (1-2 hours)
Before making any offer, run a complete analysis from your end buyer's perspective:
- Estimate ARV: Pull 3-5 comparable sales within 0.5 miles. Adjust for differences. Take the median. See ARV calculation guide.
- Estimate repairs: Walk or photograph the property. Estimate per room/system. Add 15% contingency. See repair estimation guide.
- Calculate buyer's MAO: ARV × 70% − repairs = maximum your buyer will pay. See 70% rule guide.
- Set your offer: Buyer's MAO − your target assignment fee ($5K-$15K) = your offer to the seller.
Example:
ARV: $200,000
Repairs: $25,000
Buyer's MAO: $200,000 × 0.70 − $25,000 = $115,000
Your target fee: $10,000
Your offer to seller: $105,000
Step 4: Negotiate and contract (Days 1-7)
Present your offer to the seller. Be transparent: you are an investor, you buy as-is, and you can close in 21-30 days. If the seller counters, know your walk-away number (the buyer's MAO minus your minimum acceptable fee).
Once you agree on price, sign a purchase agreement that includes:
- Assignment clause ("Buyer, or assigns, may assign this contract")
- Inspection contingency (7-14 days)
- Earnest money ($500-$2,000) held by title company
- Closing date (21-30 days from execution)
- As-is condition
See our contract template guide for clause-by-clause details.
Step 5: Market to your buyer list (Days 1-7 after contract)
Time is money now. Every day between signing the contract and finding a buyer is a day closer to your closing deadline. Create a deal package with:
- Property photos (exterior + interior if accessible)
- Address and property details (beds, baths, sqft, year built)
- Your asking price (contract price + assignment fee)
- ARV with 3-5 supporting comps
- Estimated repair scope and cost
- Projected buyer profit
Blast this package to your buyer list via email and text. Post in local investor Facebook groups. Call your top 5-10 buyers directly. A well-priced deal with a complete package should generate interest within 24-48 hours. See finding cash buyers and our deal blast guide.
Step 6: Assign the contract (Days 7-14)
When a buyer accepts your deal, execute an assignment of contract agreement. The buyer signs the assignment, deposits their earnest money ($2,000-$5,000, typically non-refundable) with the title company, and the title company begins closing preparations.
Deliver the original purchase agreement and the assignment agreement to the title company. They will prepare a settlement statement showing the seller receiving their contract price, the buyer paying their total price, and you receiving the assignment fee in between.
Step 7: Close and collect (Days 21-30)
On closing day, all parties sign documents, the title company records the deed, and funds are distributed. Your assignment fee is either wired to your bank account or handed to you as a check. The typical timeline from contract to close is 21-30 days, though experienced wholesalers with reliable buyers can close in 14-21 days.
After closing, document what worked and what did not. Track your marketing spend, number of leads, offers made, and deals closed. This data helps you optimize your marketing and increase your deal volume over time.
Timeline summary
| Phase | Duration | Key Action |
|---|---|---|
| Marketing to sellers | Ongoing | Consistent weekly marketing |
| Seller conversation | Day 1 | Qualify motivation and property |
| Deal analysis | 1-2 hours | ARV, repairs, MAO, offer price |
| Negotiate + contract | 1-7 days | Sign purchase agreement |
| Market to buyers | 1-7 days | Deal package blast |
| Assignment | Days 7-14 | Sign assignment, buyer deposits earnest |
| Close | Days 21-30 | Title company closes, you get paid |
Related articles
- Wholesale Real Estate: Ultimate Guide
- How to Start Wholesaling Real Estate
- How to Wholesale a House
- What Is Wholesale Real Estate?
- How to Find Cash Buyers (Complete Guide)