Wholesaling Real Estate: A Beginner’s Guide to Your First Deal

Wholesaling Real Estate: A Beginner’s Guide to Your First Deal

Wholesaling is one of the fastest and most accessible ways to start in real estate—without the need for massive capital or long-term property management.

What Is Wholesaling?

Wholesaling is when you find a property—often one that needs repairs or is being sold below market value—and put it under contract. Instead of buying it yourself, you sell your rights to purchase it to an investor for a fee.

Step-by-Step Process

1. Find a Property
   Look for distressed homes, motivated sellers, or undervalued listings. Networking, driving for dollars, and online searches are your best tools.

2. Evaluate the Numbers
   Investors need to see a profit after repairs. Use the ARV (After Repair Value) formula and subtract repair costs and profit margins to find your maximum allowable offer.

3. Get It Under Contract
   Negotiate with the seller to secure a contract price that works for both sides.

4. Assign the Contract
   Instead of closing, you transfer your purchase rights to an investor for an assignment fee.

5. Get Paid
   Fees typically range from $5K to $20K or more per deal, depending on the property and market.

Example Deal

• ARV: $250,000

• Repairs: $40,000

• Investor Profit Goal: $30,000

• Max Offer: $180,000

• Under Contract for: $170,000

• Assignment Fee: $10,000

Pro Tips for Beginners

• Build your cash buyer list before you find the deal

• Be transparent with sellers about your role

• Learn your state’s wholesaling laws

📩 Want to start wholesaling? DM me and I’ll help you map out your first deal step-by-step.