What Does Property Disposition Mean?
Property disposition is the act of selling, transferring, or otherwise conveying ownership of real estate from one party to another. In the broadest sense, any time a property changes hands -- through sale, gift, foreclosure, tax deed, or estate transfer -- that's a disposition. In the context of real estate investing, disposition specifically refers to the sell-side of a transaction: getting a deal closed with a buyer.
For wholesalers, property disposition is the core revenue-generating activity. You can acquire contracts all day long, but you don't make money until you dispose of them -- that is, until you find a buyer and close the deal. This is why the term "dispo" has become shorthand in the wholesaling community for the entire process of marketing a deal and getting it sold.
Types of Property Disposition
- Wholesale assignment: Assigning your purchase contract to an end buyer for a fee. You never take title.
- Double close: Closing on the purchase and then immediately reselling to the end buyer in two separate transactions.
- Retail sale: Listing a property on the MLS through a real estate agent for sale to a traditional buyer (often after renovation).
- Owner financing: Selling the property while carrying the note, creating a stream of payments instead of a lump sum.
- Auction: Selling through a public or private auction process.
- Foreclosure: Involuntary disposition where the lender takes and sells the property to satisfy a defaulted loan.
- Tax sale: Government-forced disposition when the owner fails to pay property taxes.
The Disposition Process in Wholesaling
A structured disposition process follows predictable steps:
- Deal analysis: Determine the ARV, repair estimates, and appropriate asking price that leaves room for both your fee and the buyer's profit.
- Marketing package creation: Build a professional deal marketing package with photos, comps, repair estimates, and multiple exit strategy analyses.
- Buyer identification: Find active investors in the property's area who match the deal's profile (flippers for rehab deals, landlords for rental deals).
- Outreach: Send the deal to your targeted buyer list via email, SMS, or phone calls.
- Negotiation: Field inquiries, schedule property walkthroughs, receive offers, and negotiate the final price.
- Contract execution: Sign the assignment contract or resale agreement with the buyer.
- Closing coordination: Work with the title company to ensure all documents, funds, and clearances are in order for closing.
Why Disposition Is the Hardest Part
Many new wholesalers focus exclusively on acquisition -- finding deals and getting contracts signed. But finding a buyer is often the harder challenge. A deal under contract with no buyer is just a ticking clock counting down to your option expiration or closing deadline.
Effective disposition requires a buyer database, marketing skills, deal analysis ability, and the speed to execute within tight timelines. Wholesalers who build strong disposition systems close more deals and can take on more contracts because they know they can sell them.
Key insight: The best wholesalers start disposition before acquisition. They know their buyers' buy boxes so well that they only contract deals they already know they can sell. The deal is half-dispo'd before the contract is even signed.