How to wholesale real estate, step by step
Wholesaling means getting a house under contract from a motivated seller and selling that contract to a cash buyer for a fee. The steps are: find sellers, run the numbers, sign a contract, find a buyer, assign or double close. Some states regulate this, so check your state's rules first.
Step 1: find motivated sellers
Use county records for owners with unpaid tax, an inherited house, a foreclosure filing or a rental they have outgrown. See the guide on how to find motivated sellers.
Step 2: estimate value and repairs
Use recent sales of similar fixed-up houses to get the after-repair value, and a room-by-room estimate for repairs. The ARV calculator and the rehab cost estimator do the math.
Step 3: work out your maximum offer
Maximum offer = ARV × your buyer's percentage − repairs − your fee. The wholesale MAO calculator shows each step. Flippers often pay around 70%, landlords more.
Step 4: make the offer and sign a contract
Use a purchase contract that your state's attorney or title company approves. Be clear that you may assign the contract; some states require written disclosure of this.
Step 5: find a cash buyer
Show the deal on a one-page deal sheet: photos, ARV, repairs, price. Buyers are flippers and landlords; deed records show who buys with cash in your county.
Step 6: assign or double close
An assignment sells your contract for a fee that appears on the closing statement. A double close has two closings and keeps your fee private but costs more. The assignment fee calculator compares them.
Check your state first
Illinois, Oklahoma and Pennsylvania treat some wholesaling as brokerage that needs a license, and Ohio's rules about telling the seller of an assignment have been changing. Check the current wording with the Ohio regulator (see our wholesaling rules page) and ask a local attorney before you market a property you do not own.
Questions
Is wholesaling legal?
In most states yes, if you follow contract, disclosure and licensing rules. A few states restrict marketing a property you only have under contract. Ask a local attorney.
How much can a wholesaler make on a deal?
Fees vary widely by market and deal. The calculators let you test a fee against the buyer's numbers.
Do I need money to wholesale?
You need money for marketing, data and a small deposit. You do not buy the house.
How we make these guides
Written by the LeadCounty editorial and data team from official county, court and state sources and our own weekly counts. We name the office behind every number, say what we cannot see, and fix mistakes when you tell us. See our editorial standards and methodology. General information, not legal or financial advice. Refreshed weekly.
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