Real Estate Wholesaling
How to find motivated sellers, get properties under contract, and assign those contracts to cash buyers for a fee — without buying property or getting a loan.
Guides in This Section
How Real Estate Wholesaling Works: The Honest Step-by-Step Guide
The full process from finding a motivated seller to collecting your assignment fee at closing — including what the timeline looks like, how much wholesalers actually make, and the legal compliance issues you can't ignore.
Read the full guideFinding Motivated Sellers: Real Strategies That Produce Leads
Direct mail, driving for dollars, cold calling, SMS outreach, skip tracing, and networking — the specific methods experienced wholesalers use to surface distressed property owners who are open to selling below market value.
Read the full guideDispositions & Acquisitions: Running Both Sides of the Business
Acquisitions is locking up deals from motivated sellers. Dispositions is selling those deals to cash buyers quickly and consistently. How both functions work, how to build a buyers list from scratch, and how to use a CRM to manage pipeline.
Read the full guideWholesale Contracts & Assignment Fees: What You Need to Know
Purchase agreements with assignment clauses, assignment contracts, double closings, how to structure and disclose your fee — and the legal compliance issues that expose wholesalers to liability when they get them wrong.
Read the full guideFrequently Asked Questions
Do you need a real estate license to wholesale?
In most states, no — but the legal environment is evolving. You're not buying or selling the property as a licensed agent; you're assigning your contractual interest in a purchase agreement. The key compliance requirement is marketing your equitable interest in the contract, not the property itself, and disclosing that you're a contract holder rather than the owner. Some states (notably Illinois) have passed specific laws around wholesaling practices. Work with a local real estate attorney before your first deal.
How much money do you need to start wholesaling real estate?
You need marketing budget, not purchase capital. Main expenses are lead generation (direct mail, calling lists, digital ads: $500–$2,000/month), skip tracing tools ($50–$200/month), CRM software ($50–$200/month), and earnest money deposits on contracts ($100–$1,000 per contract, refunded or applied at closing). You don't buy the property or get a loan. Budget $1,000–$3,000 to get started and sustain marketing for 60–90 days before your first deal closes.
How long does it take to close your first wholesale deal?
Most new wholesalers spend 2–4 months building their marketing pipeline before their first signed purchase contract. Once under contract, the assignment typically takes 2–6 weeks to close. Setting a realistic expectation of 3–6 months from starting to earning your first assignment fee is appropriate. Wholesalers who quit after 60 days without a deal almost always quit before the pipeline they built starts producing.
What is an assignment fee in wholesaling?
An assignment fee is your profit for finding the deal and selling your contract position to the end buyer. It's calculated as the difference between the price you agreed to pay the seller and the price the buyer pays to take over your position. On residential deals, fees typically range from $5,000 to $20,000. The fee is paid at closing — the title company distributes it from the buyer's funds as part of the settlement statement.
What is the difference between wholesale and double closing?
In a standard assignment, you never close on the property — you sell your contract rights to the buyer, who closes directly with the seller. Your fee is visible to both parties on the settlement statement. In a double closing, you formally purchase the property in a first transaction (A-B) and immediately resell it in a second transaction (B-C), keeping your profit private from both the original seller and end buyer. Double closings are used when assignment isn't available or when profit margin privacy is important.