How To Wholesale Real Estate In Nevada: Step-By-Step (2024)

Do you live, work, invest or plan to invest in the great state of Nevada?

Do you read the newspaper, listen to local media outlets, or overhear stories at the gym of multi-million dollar real estate investors and operators and wonder if you have what it takes to get involved?

As of July 1, 2022, the Silver State had a population of just over 3,100,000 people. Though you might think that is a paltry figure relative to the 333,000,000 people in the United States, you’d be misguided. Why? Because Nevada is growing much faster than other states around the country.

Over the past two years, the population in the United States has grown just 0.6%. However, Nevada, due to its beautiful landscape, pristine cities, and remarkable tourist destinations, has grown 2.4% - that is 4x the rate the country is growing.

This rapid growth rate centralized to the state of Nevada is spilling over into the housing market. Not only have prices gone up, but sales and other ancillary real estate businesses have begun to flourish as well. This means an opportunity for you - the aspiring real estate investor - to get a piece of the action.

A real estate market driven by motivated buyers - whether accelerated by new couples and families, travelers, or young nomads and millennials - is a real estate market an investor can take advantage of. So, what is the best way to get a slice of the pie? Real estate wholesaling.

In this article, we’ll discuss what wholesaling real estate is and how to wholesale real estate in Nevada.

• What Is Wholesaling Real Estate?
• How To Wholesale Real Estate In Nevada (9 Steps)
• Is It Legal To Wholesale Real Estate In Nevada?
• How Much Do Real Estate Wholesalers Make In Nevada?
• Do You Need A License To Wholesale Real Estate In Nevada?
• Is Wholesaling In Nevada Easy?
• Final Thoughts On Wholesaling In Nevada

What Is Wholesaling Real Estate?

Wholesale real estate is a type of investment strategy whereby one connects motivated sellers with cash buyers in exchange for a fee. Typically wholesalers work with investors buying fix and flip homes, small multifamily properties, and other similar assets, but the sphere of influence can apply to all types of real estate transactions.

Generally, wholesalers find distressed properties, go under contract to purchase them, and then assign the purchase contract over to a different end-buyer for a fee. Once closed, they’ll get back out into the market and find more deals to wholesale.

How To Wholesale Real Estate In Nevada (9 Steps)

In the following nine steps, we’ll show you how to wholesale properties in The Silver State. Be sure to check out our in-depth video showing you how to wholesale real estate step by step here:

*Before we begin our guide on how to wholesale real estate in Nevada, we invite you to view our video on How To Wholesale Real Estate Step by Step (IN 21 DAYS OR LESS)!

Host and CEO of Real Estate Skills, Alex Martinez, provides a comprehensive, step-by-step guide for beginners to start wholesaling real estate!

With that in mind, here's our simple step by step process for wholesaling real estate in Nevada:

1. Partner With A Wholesale Mentor
2. Learn Nevada Real Estate Wholesaling Laws & Contracts
3. Understand The Nevada Real Estate Market & Lingo
4. Build A Cash Buyers List
5. Find Motivated Sellers & Distressed Properties
6. Put Distressed Properties Under Contract
7. Assign The Contract To Cash Buyer
8. Close Deal And Collect Assignment Fee
9. Double Close Or Wholetail When Necessary

1. Partner With A Wholesale Mentor

Whether you want to jump into Las Vegas, Carson City, Reno, or any other Nevada city, your first order of business before you dig deeper into your due diligence needs to be connecting with a real estate wholesale mentor. Mentors are individuals who have already successfully navigated the Nevada real estate market. These are professionals that already have the contacts, skills, and determination to successfully wholesale deals.

Connecting with a mentor can make your life a whole lot easier. They’ll know the right laws to be aware of, the licensing requirements you’ll need (if any), and the essential contracts to have handy at each of your deal closings.

Whether you’re a beginner or a seasoned investor, connecting with a wholesale mentor is an absolute must.

2. Learn Nevada Real Estate Wholesaling Laws & Contracts

There are no specific wholesaling laws pertaining to Nevada, but there are certainly overarching real estate transaction and licensing rules that you should be aware of.

Chapter 645 of the Nevada Revised Statutes governs all aspects of conduct, behaviors, and laws for Real Estate Brokers and Salespersons. If you engage in real estate wholesaling, you should familiarize yourself with the portions of this chapter that apply to your specific situation.

So, what are some laws to remember? Do not commit fraud. This might seem obvious, but you’d be shocked at how often fraud happens.

This could include wire fraud, mail fraud, actively deceiving a client, or mortgage fraud. Though your intentions may not be malicious or intend to be harmful, it is still key to read through the fine print to ensure you aren’t acting inappropriately by accident. Fraud can be a federal offense with fines and jail time so be sure to brush up on the licensing requirements, fraud penalties, and proper ways to do business. More details can be found here.

Another important law is Nevada’s real estate licensing requirements. Keep in mind, wholesaling is the act of selling the equitable right to a purchase agreement, it is not selling an actual property. If you ever want to sell a property or market an asset publicly, you’ll need a license.

According to NRS 645.235, the Nevada Real Estate Commission which is overseen by the Nevada Real Estate Division (NRED) can impose an administrative fine against any person who knowingly: 

(a) Engages or offers to engage in any activity for which a license, permit, certificate or registration or any type of authorization is required pursuant to this chapter, or any regulation adopted pursuant thereto, if the person does not hold the required license, permit, certificate or registration or has not been given the required authorization; or

(b) Assists or offers to assist another person to commit a violation described in paragraph (a).

Though you won’t need a license to operate your wholesale business, you should still be aware of some of your limitations if you do not have one.

Once you’ve read through the fine print of the laws, you’ll want to brush up on the Nevada-specific contracts and documents. Be sure to speak to an attorney for this part of the process. Though it might be expensive to sit down for a few hours, it will be well worth it in the long run. Ask your mentor for a recommendation.

See here for an example of a standard Nevada Purchase and Sale Agreement.

3. Understand The Nevada Real Estate Market & Lingo

After getting a good grasp of Nevada real estate laws and contracts, you’ll want to start doing some research to determine the right submarkets, neighborhoods, and districts to focus on when wholesaling houses. Keep in mind, every state is a little bit different.

Although they share many similar resources, their geographies, visitor sites, and landscapes can drastically change how you go about your investment process. For instance, Nevada is a large vacation spot. Las Vegas, Reno, and the Grand Canyon are huge tourist locations. That could mean you might want to focus on learning the travel market, understanding hiking destinations, and nearby attractions.

As part of your research, you should review the many online realtor resources Nevada has to offer. Here are a few:

• The Nevada Association of REALTORS (NAR)
• The Las Vegas Association of REALTORS (LVR)
• The Sierra Nevada Association of REALTORS (SNR)
• The Elko County REALTORS (ECR)

Each of these sites has educational content, webinars, contact numbers, event calendars, and other resources you might find helpful as you begin your hunt for wholesale deals.

4. Build A Cash Buyers List

Next, you’ll want to build a cash buyer list.

A cash buyer list is a list of cash-rich investors that are ready and able to purchase your property with the liquidity they have on hand. These investors are generally fix and flip specialists who can analyze and close deals extremely fast.

Compile a list of these individuals so that once you’ve found a deal all you’ll need to do is shoot them a quick phone call to get the ball rolling. Your real estate mentor can help you compile your initial Nevada-specific cash buyer list.

You can also check out this video on how to find cash buyers!

5. Find Motivated Sellers & Distressed Properties

There are many ways to find great properties to wholesale. Attending networking events and surfing sites such as Zillow, Loopnet, Redfin, or the Multiple Listing Service (MLS) could be a great place to start your research. However, you’ll likely find the most profit-rich opportunities such as distressed properties, sold by motivated sellers.

Motivated sellers are homeowners who wish to sell their property in a flash. A good example of a motivated seller would be someone in a cash crunch or an individual who has recently inherited a property from someone else and doesn't want to maintain the asset. These owners are willing to forgo larger profits in place of a quick, cash offer.

You’ll also want to find distressed properties.

Distressed properties are properties that are in a challenging state of affairs. Perhaps they were placed into foreclosure after being damaged by a bad tenant, fire, or mortgage issue. These owners don’t want to spend more time and money caring for these lost causes. They’d rather cut their losses and sell their properties for below market value to a more passionate wholesaler or fix and flip investor.

These properties are all over Nevada, you just have to find them and wait for the right pitch.

Read Also: Finding Motivated Seller Leads: Free & Paid Tactics

Dive into real estate wholesaling with confidence. Download our FREE Wholesaling Cold Calling Script!

6. Put Distressed Properties Under Contract

Next, it’s time to put the property under contract, but, what price should you offer?

This is where the Maximum Allowable Offer (MAO) - or the Holy Grail of wholesale transactions - comes into play.

Here’s the equation:

Maximum Allowable Offer (MAO) = After Repair Value - Rehab Costs - Desired Profit - Wholesale Fee

The MAO is the maximum price a wholesaler should pay for a home to ensure all parties involved walk away with a profit.

The first step is calculating the After Repair Value (ARV). The ARV is the value of a property after it’s been rehabbed and brought up to a value that is higher and comparable to similar nearby houses.

You can calculate this value by walking the streets of the neighborhood, speaking to local real estate agents and bankers, and analyzing backdated sales data from the previous year.

Next, you’ll be estimating rehab costs necessary to fix up your distressed property. Is the property going to need new countertops, updated bathrooms, or maybe a new garage? Will it increase in value with new landscaping and an extra closet or new appliances?

Answering these questions will help give you an idea of the extent (and cost) of the project at hand.

Then, you’ll need to determine yours and the flippers' desired return. A good rule is to assume a cash buyer would want to make about a 25% - 30% profit on any transaction. This is calculated using a formula called the 70% Rule. 

For you, the wholesaler, we suggest at least a 15% profit. Although, you are your own boss, so you can bake in whatever fee you’d like.

Once you calculate the MAO, put in an offer at - or below - your calculated number. This will ensure you’ll make money once you’ve assigned the contract over to a cash buyer on your list.

7. Assign The Contract To Cash Buyer

You’ve found the property, calculated the right offer, and locked in a wholesale real estate contract, now what? It’s time to assign the contract to your end buyer.

For this step, get legal advice. Working with a real estate attorney or mentor, although not always cheap, can ensure you don’t fall victim to any major liabilities or illegal activity.

The last thing you want is to get hit with fines and penalties for not getting the appropriate licensing or writing up an illegal contract. 

8. Close Deal And Collect Assignment Fee

Once you have the purchase contract and assignment contract all buttoned up, it’s time to close the deal and collect your assignment fee.

For this part, you’ll need to be in touch with the closing team, title agents, seller, end-buyer, and the attorneys involved. The last thing you want is for something to go wrong last minute and backfire on you. Most deals will close pretty quickly, but it’s always good to be prepared.

Once you’ve collected your cash flow, it’s time to rinse, repeat, and find your next wholesale deal.

9. Double Close Or Wholetail When Necessary

As a wholesale investor, you’ll want to sometimes be creative in your investment strategies. Two different methods you might want to familiarize yourself with are double closing and wholetailing.

A double closing is a transaction where you use two simultaneous closings instead of the traditional assignment contract. What you’ll do is go under contract with the seller and the end buyer at the same time. Then, you’ll present both purchase agreements to the title company and they’ll close the deal for you. In an ideal situation, they’ll facilitate the closing with your buyer and use the buyer’s cash to close on your sale with the initial seller.

Double closings are not without their challenges. Since you are going under contract with a cash buyer before owning the property, you might encounter some title insurance hiccups. You may want to consider hard money loans or transactional funding to help get your deal to the finish line.

Double closings are also a bit more expensive than standard wholesaling because you’ll be paying closing costs, legal fees, and recording taxes on two separate transactions at the same time.

Next, you should consider wholetailing as well.

Wholetailing is not tremendously dissimilar from a fix and flip. In wholetailing, you’ll take ownership of the property, do some high return on investment (ROI) renovations, and then re-list the property shortly thereafter on the MLS. It is a great wholesale exit strategy because you are able to increase the aesthetics of the house and, when you re-list the property on the MLS, access a more eager buyer from a larger pool of options.

Keep both of these strategies in your wheelhouse to ensure ultimate flexibility in your business.

Read Also: Hard Money Lenders 101: What Are They & How To Find Them

*For in-depth training on real estate investing, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

Is It Legal To Wholesale Real Estate In Nevada?

Yes! It is legal to wholesale real estate in Nevada.

As mentioned earlier, there are no specific laws regarding wholesaling houses. However, there are laws around licensing requirements. If you want to become a licensed real estate agent as well, be sure to know the full process and legal avenues of how to get it done.

Read Also: Can A Realtor Wholesale Property? The (ULTIMATE) Guide

How Much Do Real Estate Wholesalers Make In Nevada?

Though the average wholesale deal brings in about $5,000 - $25,000, the actual wholesale salary amount can fluctuate greatly depending on the state in which the deal is conducted, the size of the property and the discount the property is to its ultimate ARV.

The beauty of wholesaling is that your salary is entirely up to how much work you want to put into the business. Though market conditions have some sway on your profits, the true catalyst is going to be the work you put into cold-calling homeowners, researching markets, and networking with cash buyers.

If you put in the time, it is not inconceivable to earn $100,000 - $200,000 a year wholesaling real estate.

Do You Need A License To Wholesale Real Estate In Nevada?

Though you won’t need a license to operate your wholesale business, it might be a good idea to get one. Real estate agents get access to all sorts of resources, webinars, networking events, and the MLS.

Having a license could give you a leg up against your competition and expand your ability to source and sell real estate.

Check out this website for the licensing requirements you’ll need to become an agent.

Read Also: How To Wholesale With A Realtor: The (ULTIMATE) Guide

Is Wholesaling In Nevada Easy?

No, but it can be made easier with the right tools. This can include a strong coach, an attentive mentor, and the proper training we offer at Real Estate Skills in the Pro Wholesaler VIP Program.

The Pro Wholesaler VIP Program is designed for the modern entrepreneur to learn the basics and how to help new real estate wholesalers avoid the pitfalls typically found by beginners. It is 100% online and is used for local and virtual real estate wholesaling.

Always learn and always strive for greatness. With the right grit and determination, you could be wildly successful.

Final Thoughts On Wholesaling In Nevada

Wholesaling real estate is a fantastic real estate investment strategy to employ in Las Vegas, NV, Henderson, NV - or any other local market of the state. Nevada is a strong market with a growing population - a recipe for opportunity. Your job as a wholesaler should be to talk to a mentor, familiarize yourself with real estate contracts, speak to lenders, and find attractively priced real estate deals. Once you’ve identified real estate properties you’d like to wholesale, put some money in escrow, and find potential buyers as quickly as you can.

You can do this via social media or by reaching out to your mentor to help. Then, act as the middleman and flip the contract over to the end buyer. Usually, these buyers are a short-term fix and flip investors, but they can also be rental property owners as well. Then, write up an assignment contract with the necessary disclosures, assign the document over to the buyer, collect your fee, and rinse and repeat.

Check out our brand new free training on how we help investors all across the country wholesale and flip houses from the MLS using only a laptop and a cell phone.

Just like that, you’ve become a wholesaler. Now, all you have to do is dive right in.

Good luck!