The short version: Wholesaling means getting a property under contract with a motivated seller, then assigning that contract to a buyer for a fee. You need three things: sellers who want to sell, buyers who want deals, and the numbers to connect them. Pick a market, choose how you'll find sellers, learn to price a deal, build a buyers list, and commit to one lead source long enough to see results.
What wholesaling is
A wholesaler finds a property below market value, signs a purchase agreement with the owner, and sells the right to buy it to another investor. The wholesaler earns the difference, usually called an assignment fee. Some wholesalers use a double close instead, buying and reselling the property the same day.
You don't need to buy or fix the house yourself. Your job is to find the deal and match it with the right buyer.
Check your state's rules. Wholesaling laws vary. Some states require disclosures or a license for certain activities. Talk to a local real estate attorney or title company before your first deal.
Your first 30 days: four decisions
1. Choose your market
Work your own area, where you know the neighborhoods and can walk properties, or go virtual and pick markets based on prices, buyer demand and how competitive they are. Many beginners start local and add virtual markets later.
2. Choose who you'll talk to
Most new wholesalers either go direct to sellers or make offers through agents on listed properties. Direct to seller usually means more margin and more motivated owners. Agent offers mean more volume and more rejection.
3. Choose how you'll find sellers
If you have more time than money, you can generate leads yourself through cold calling, texting, door knocking or driving for dollars. If you have a budget, you can buy leads from sellers who already asked for an offer and spend your time on conversations instead. See cold calling vs. inbound seller leads.
4. Choose your target property
Early on, aim for properties that need work but not a full rebuild, in neighborhoods your buyers already buy in. Long-time owners and dated homes are common sources of motivated sellers. A manageable rehab means more buyers who can take the deal.
Learn to price a deal
- After-repair value (ARV). What the home sells for once it's fixed, based on recent comparable sales.
- Repair costs. A realistic estimate of what it needs.
- Your buyer's margin. What a flipper or landlord needs to make the deal worth it.
- Your fee. What's left for you after the buyer's numbers work.
Work backward from what a buyer will pay, not forward from what the seller wants. Then make offers you can actually sell.
Build your buyers list before you need it
A contract is only worth something if someone will buy it. Find cash buyers through local investor meetups, recent cash sales in public records, landlords, flippers and title companies. Learn what each one buys, where and at what price.
"The first time I walked the house, I made sure to bring two of my like my VIP buyers with me. Walked it and, you know, had it sold within within a day."
Scott Cunningham, Brick By Brick · Watch the video
Talk to sellers the right way
Your first conversations will be awkward. That's normal. Focus on listening: the property's condition, the seller's timeline, why they're selling and what they need. Don't rush to a price. See how top investors work a seller lead.
Stick with one lead source long enough
The most common beginner mistake is quitting a lead source after a handful of leads. One lead tells you nothing. Twenty starts to tell you something.
"Back when when I started, I think I got like 10 or 12 leads and I didn't get anything under contract. So, I was talking to one of my partners that recommended me to you guys, and he said, 'Just give it 20.' I said, 'All right.' Then got a couple more leads and actually got one."
Tony Schrantz, Boondocks REI LLC. That deal sold for about $145,000 after he bought it at $60,000. · Watch the video
"I knew I had to just find one. Stores and stick to it. Then not keep switching around... And because I stuck with it, I said, I'm not gonna do any other lead generation than I'm gonna stick to Leadzolo. And boom, here I am."
Courtney Middlebrooks, Cross Property Solutions, on getting her first property under contract · Watch the video
How beginners use Leadzolo
Leadzolo sends you motivated seller leads: homeowners who asked for a cash offer, with the reason they gave for selling. Instead of building a calling operation, new wholesalers can spend their time on conversations.
"I tell every single person who is trying to learn real estate, 'LeadZolo'. I think it is the easiest way to get into wholesaling."
Perry Morrison, PD Cash Buyers · Watch the video
- Start small. Bid on one market or browse the Marketplace, where leads start at $2.
- Get help setting up. Our team walks new investors through markets and bids.
- Return bad leads. Invalid leads can be returned within 7 days.
More beginner stories are on our new investors page.
Find your first deal
Talk to sellers who already raised their hand. Leads won through bidding are exclusive to you.
Start as a New Investor →Wholesaling FAQ
Do I need money to start wholesaling?
You need less than buying a property, but not zero. Expect costs for marketing or leads, earnest money deposits and basic tools. Generating your own leads costs less money and more time.
Is wholesaling legal?
Wholesaling is legal in most places, but rules vary by state. Some require disclosures or a license for certain activities. Check with a local real estate attorney.
How long until my first deal?
It depends on your market, your lead flow and how consistently you follow up. Give one lead source enough leads to get a real sample before you judge it.
What's an assignment fee?
The amount a buyer pays you for the right to take over your purchase contract with the seller.