How to Wholesale Real Estate in Philadelphia, Pennsylvania (Step-by-Step Guide)
Sep 05, 2025
What: A tight, local playbook on how to wholesale real estate in Philadelphia—build a buyers list, secure an assignable contract, assign (or double close), and finish cleanly with investor-friendly title.
Why: Philly’s rowhouse inventory, steady end-buyer demand, and active investor network create repeatable value-add deals across price points.
How:
- Stay compliant: L&I Residential Property Wholesaler License, City homeowner disclosure (3 days pre-offer), Do-Not-Solicit list; under Pennsylvania rules, market contract rights, not the house.
- Price precisely: pull Bright MLS comps; verify OPA ownership/tax data, L&I permits/violations, and Department of Records liens; set ARV/MAO by block.
- Build real buyers: focus on Fishtown, Port Richmond, Kensington, Brewerytown, Point Breeze, Grays Ferry, Germantown, and Mayfair.
- Source deals: driving for dollars, probate/tax-delinquent/public records, “as-is/cash-only” MLS, and agent/vendor referrals.
- Execute cleanly: use an assignable PSA with tight timelines; choose simple assignment—or a double close when privacy/pushback appears.
- Close professionally: wholesaler-savvy title shows your assignment fee on the settlement statement (no side payments).
Philadelphia rewards simple, disciplined execution. Block-to-block pricing on rowhouses, twins, and small multis means your edge comes from tight comps, clean contracts, and investor-friendly closings. This guide shows you exactly how to wholesale real estate in Philadelphia—locally, legally, and step by step—so motivated-seller conversations become signed assignments and paid wires.
Use the jump links below to grab what you need now, or read the full blueprint on how to wholesale houses in Philadelphia from first call to closing statement:
- Is Wholesaling Real Estate Legal in Philadelphia?
- Philadelphia Real Estate Market Overview
- How to Wholesale Real Estate in Philadelphia (Step-by-Step)
- Pros & Cons of Wholesaling Houses in Philadelphia
- Philadelphia Resources: Title/Escrow, REI Groups & Tools
- Free Download: The Ultimate Quick-Start Guide
- FAQs: Wholesaling in Philadelphia
- Final Thoughts on Wholesaling Houses in Philadelphia
If you’re serious about doing your first real estate deal, don’t waste time guessing what works. Our FREE Training walks you through how to consistently find deals, flip houses, and build passive income—without expensive marketing or trial and error.
This FREE Training gives you the same system our students use to start fast and scale smart. Watch it today—so you can stop wondering and start closing.
Is Wholesaling Real Estate Legal in Philadelphia?
Yes, wholesaling is legal in Philadelphia and across Pennsylvania when you follow state and city rules. In Pennsylvania, wholesaling is now licensed real estate activity under Act 52 (effective Jan 2025). In Philadelphia, you also need the City’s Residential Property Wholesaler License and a 3-day pre-offer disclosure to the homeowner, and you must honor the City’s Do-Not-Solicit list. You are selling/assigning your contract rights (equitable interest)—not brokering the property for someone else.
Plain-English checklist (Philadelphia + Pennsylvania):
- Hold the right license(s): PA Act 52 treats wholesaling as licensed activity under RELRA (work under a broker/firm); in Philadelphia, obtain the Residential Property Wholesaler License from L&I.
- Give the City disclosure 3 days before any offer and get the homeowner’s signed acknowledgement.
- Honor the Do-Not-Solicit list (and stop contacting owners who opt out).
- Market the contract, not the house, with truthful terms and fee transparency; include any Act 52-required notices/cancellation rights.
- Close through title so your assignment fee appears on the settlement statement—no off-HUD payments.
- Use a double close if anyone objects to the assignment or when privacy around your spread matters. (Still comply with Act 52/City rules.)
Why it’s legal: Pennsylvania’s Act 52 amended the Real Estate Licensing and Registration Act to recognize/define wholesale transactions, require licensing and specific disclosures, and give consumers protections (including a right to cancel in certain cases). Philadelphia overlays additional consumer safeguards: a local wholesaler license, a mandatory three-day pre-offer disclosure, and a Do-Not-Solicit registry. If you meet these conditions and market/assign your equitable interest rather than brokering the seller’s property, you are operating within the law.
Educational only—consult a Pennsylvania real estate attorney, your broker, and your title company for deal-specific guidance.
- Do hold proper licensure (RELRA) and the City wholesaler license if operating in Philadelphia.
- Do deliver the City’s 3-day Disclosure and keep a signed copy in your file.
- Do respect the Do-Not-Solicit list and stop outreach when asked.
- Don’t present yourself as an unlicensed broker or advertise the property itself if you’re only selling/assigning contract rights.
- Do show your assignment fee on the closing statement; avoid side deals.
Here are the three core ways to structure a wholesale deal in Philadelphia—each with different disclosure, capital, and timing considerations. Start with simple assignments when everyone is comfortable with your fee; pivot to a double close when privacy matters or pushback appears; consider a wholetail if light repairs unlock a retail exit.
Philadelphia Real Estate Market Overview
Philadelphia blends century-old housing stock with steady, year-round demand. “Eds & meds,” government and legal services, logistics, and a deep small-business base keep buyers and renters active in every season. For anyone learning how to wholesale real estate in Philadelphia, the core lesson is evergreen: disciplined underwriting plus block-level nuance turns consistent lead flow into repeatable assignments.
The city is a quilt of micro-markets. Pre-war brick rowhouses sit beside porch-front twins and small multifamily walk-ups, with values that can shift within a few blocks. Transit access, proximity to hospitals and universities, neighborhood commercial corridors, park and river amenities, and school catchments all shape pricing street by street. Most wholesale exits are rowhouses and small multis, but condos and mixed-use storefront rows also trade where light value-add (legal unit conversions or accessory units where allowed) makes numbers pencil.
To move fast and accurately when you’re learning how to wholesale houses in Philadelphia, lean on durable, local data sources that don’t go out of date: Bright MLS (tight comps & DOM), City property records (ownership/assessments/deeds), Licenses & Inspections (permits/violations/contractors), zoning & historic overlays (for scope/timelines), and flood/drainage corridors along the Schuylkill and Delaware (for risk and rehab planning).
- Diverse housing stock (rows, twins, small multis) supports multiple exit paths: assignment, double close, wholetail, BRRRR.
- Block-level spreads: values vary by street, creating room for disciplined underwriting and value-add.
- Durable demand from universities, hospitals, courts/government, and regional logistics hubs.
- Data-rich ecosystem (MLS, property records, L&I, zoning/historic overlays) enables tight comps and faster decisions.
- Neighborhood variety—from entry-level Northeast to resurgent river wards—helps match deals to buyer “buy boxes.”
How to Wholesale Real Estate in Philadelphia (Step-by-Step)
Below is a simple, actionable roadmap for how to wholesale real estate in Philadelphia—built to take you from your first seller conversation to a clean closing. Follow it end-to-end or jump to the exact step you need as you learn how to wholesale houses in Philadelphia.
Use these jump links to move through the workflow: mentor, compliance, market analysis, buyers, sellers, contract, assignment, closing, and double close:
- Partner with a Wholesale Mentor
- Learn Philadelphia/Pennsylvania Wholesaling Laws & Contracts
- Analyze the Philadelphia Market (Bright MLS Comps, ARV, MAO)
- Build a Cash Buyers List in Philadelphia
- Find Motivated Sellers & Distressed Properties (Philadelphia)
- Put Properties Under Contract (Philadelphia)
- Assign Contracts to Cash Buyers
- Close Deals & Collect Your Assignment Fee
- Double Close When Necessary
Partner with a Wholesale Mentor
Want to skip the guesswork and get to the closing table faster? The right wholesale mentor turns scattered YouTube tactics into a Philadelphia-specific plan—how to price rowhouses by the block, navigate Pennsylvania/City rules confidently, talk to sellers without overpromising, and connect with cash buyers who actually wire funds. If you’re looking for that kind of guidance, we can be in your corner with step-by-step coaching and real deal support.
Start local and intentional. Walk properties with experienced investors, attend Philly meetups, and sit in on project tours. Ask which title teams handle assignments and double closes smoothly (and put your fee on the HUD), which contractors give reliable, scope-based bids, and how pros underwrite in your target ZIPs. If you prefer a structured path, our coaching can provide weekly touchpoints, templates, and contract reviews so you act with confidence instead of trial and error.
- Deal clarity: pull Bright MLS comps, set ARV, and calculate MAO by block and property type (row vs. twin vs. small multi).
- Contract control: use assignable PSAs, right-sized contingencies, and clean assignment paperwork that title can process.
- Real buyers: introductions to vetted Philadelphia investors with clear buy boxes and recent proof of funds.
- Compliance confidence: operate within Pennsylvania/City requirements while marketing contract rights—not brokering property.
- Momentum: accountability, checklists, and “do-this-next” coaching that keeps deals moving to closing.
Quick checklist: choosing the right Philadelphia mentor
- Local track record: recent assignments and double closes in target areas like Fishtown/Port Richmond, Brewerytown/Strawberry Mansion, Point Breeze/Grays Ferry, Germantown/Mt. Airy, and the Northeast.
- Legal literacy: aligns with Pennsylvania licensing rules and Philadelphia’s wholesaling requirements; markets equitable interest correctly.
- Title/escrow partners: works with investor-friendly teams that show assignment fees on the settlement statement and hit wire cut-offs.
- Buyer access: can connect you to active cash buyers with verified criteria and timelines.
- Systemized training: scripts, templates, underwriting worksheets, and real-deal reviews—not just theory.
- Availability: weekly office hours or 1:1 support so you’re never stuck on pricing, paperwork, or next steps.
If you want a proven path, we’re ready to help you implement this framework—block by block, contract by contract—until your pipeline and paydays feel repeatable.
Need a Mentor? Start Here (Free PDF)
If you’ve been thinking, “I just need someone to show me the moves,” that’s us. We’re the mentor you’re looking for, and you don’t have to wait. Grab our free, step-by-step PDF that shows you how to wholesale in any state (including Philadelphia)—from legal basics to buyer lists, offers, and closing. It’s concise, actionable, and designed for your first deal. Download the free guide now:
Learn Philadelphia Wholesaling Laws & Contracts
Wholesaling is allowed in Philadelphia, but it’s regulated at both the state and city levels. In Pennsylvania, assigning your equitable interest in a residential contract for a fee is treated as licensed brokerage activity. Philadelphia adds its own Residential Property Wholesaler License, a city disclosure to owners, and a Do-Not-Solicit registry. Operate within these guardrails and you’re compliant.
Why it’s legal (and the rules to follow)
- State framework (PA law): The Pennsylvania Real Estate Licensing & Registration Act (Act 52 of 2024) treats a “wholesale transaction” (assigning/selling contract rights in a 1–4 unit dwelling for a fee before taking title) as brokerage. Practically, that means assignments for a fee should be performed by—or under—the supervision of a PA-licensed broker/salesperson. The Act also prescribes seller-friendly disclosures and a 30-day cancellation right for wholesale sales agreements.
- City overlay (Philadelphia law): The City requires a Residential Property Wholesaler License, plus delivery of a Wholesaler Disclosure to homeowners at least three business days before presenting an offer. You must also honor the City’s Do-Not-Solicit list referenced in the same program materials.
- Standard disclosures still apply: On retail transfers, owners must provide the Pennsylvania Seller’s Property Disclosure (RESDL); pre-1978 housing also triggers federal lead-based paint disclosure.
- License the activity: If you will assign contracts for a fee, do it as a PA licensee (or under a broker) per Act 52.
- Hold the City license: Get the Residential Property Wholesaler License and deliver the City Wholesaler Disclosure 3 business days before any offer.
- Use state clauses: Include Act 52’s wholesale disclosures and the seller’s 30-day cancellation right in your agreement.
- Respect outreach rules: Scrub marketing against Philadelphia’s Do-Not-Solicit registry; keep messaging truthful.
- Market the contract, not the property: Your advertising should describe your contractual rights—not broker a property you don’t own.
Educational only—consult a Pennsylvania real estate attorney, your broker, and title/escrow for deal-specific guidance.
Core documents you’ll use
- Purchase & Sale Agreement (PSA): Pennsylvania-friendly PSA with inspection rights. If you intend to assign (and are properly licensed), add assignment language and Act 52’s wholesale disclosures/cancellation terms.
- Assignment of Contract: Transfers your equitable interest to a vetted cash buyer for a disclosed fee, paid on the settlement statement through title.
- Double-Close Package: Two back-to-back closings (A→B, B→C). Because you take title, this route is not a “wholesale transaction” under Act 52; RESDL and federal disclosures still apply on the retail resale.
- Philadelphia Wholesaler Disclosure: City-mandated notice to owners delivered ≥3 business days before an offer (retain proof of delivery).
Legal ways to structure deals in Philadelphia
Analyze the Philadelphia Market (Comps, ARV, MAO)
Great wholesaling starts with great numbers. In Philadelphia, pricing can change block-to-block—sometimes corner-to-midblock. Your job is to value the specific house on the specific block, then back into a Maximum Allowable Offer (MAO) that leaves profit for your buyer and room for your fee.
- Define the subject precisely: beds/baths, total/finished square footage, width & depth (rowhouse width matters), lot size, basement (finished/unfinished), roof type (often flat), parking (permit/garage), heating/cooling setup, year built, and any additions.
- Pull tight comps (recent, local, like-kind): Start with Bright MLS. Target sales within ~0.1–0.5 miles in the past 3–6 months, similar size (±15%), similar type (row vs. twin vs. small multi), and similar renovation level. Avoid crossing major pricing boundaries (e.g., big corridors/parks or obvious school/catchment changes) unless you adjust accordingly.
- Filter and adjust: Drop outliers like estate/teardown or non-arm’s-length sales. Note upgrades (roof/HVAC/electrical service, kitchens/baths, windows, finished basements, roof decks) and adjust for condition, square footage, bed/bath count, AC, parking, and outdoor space.
- Calculate ARV from your best three comps: Use the median of the top three truly comparable renovated sales (price or $/SF). Keep renovation level consistent with neighborhood expectations—don’t apply “luxury rehab” pricing to a “rental-grade” scope.
- Estimate rehab costs realistically: Line-item where possible (roofing on flats, brick/pointing, joist or sill issues, knob-and-tube rewires, cast-iron/clay drain stacks, HVAC, kitchens/baths, windows/doors, stairs/rails, moisture mitigation). Refine after a walkthrough and contractor quotes.
- Know your buyer’s math: Many Philly flippers target roughly ARV × 70%–75% − repairs (then subtract soft costs). Buy-and-hold buyers underwrite to cash flow (rents, taxes, insurance, utilities) and may accept a higher purchase price than flippers.
- MAO Formula: MAO ≈ (ARV × Buyer Discount) − Repairs − Buyer Soft Costs − Your Assignment Fee. Don’t exceed MAO—protect your spread on day one.
- Pressure-test before you offer: Check public records for title flags or code issues (open violations/permits), verify zoning and any overlays, scan flood risk near rivers/low-lying areas, and confirm condo/HOA rules if applicable.
- Bright MLS: sold/active/pending comps, remarks, days on market.
- City property & maps: ownership, assessments, zoning, and permit/violation history.
- Recorder/Deeds: liens, transfers, and document history.
- Contractor quotes: verify scopes (flat roofs, masonry, electrical service upgrades, sewer laterals).
- Public portals: photos and prelim comps—always verify with MLS before writing offers.
Tip: Track every deal in a simple worksheet—subject details, comps, ARV, repairs, MAO, and notes—so your pricing stays consistent and defensible.
A fast, practical walkthrough of comps, ARV, repairs, and MAO you can apply to Philadelphia rowhouses, twins, and small multis.
Build a Cash Buyers List in Philadelphia
Your buyers list is your oxygen. The larger (and more qualified) it is, the faster you can move contracts and the fewer deals fall apart. In Philadelphia, prioritize investors who actually close: clear buy boxes, recent proof of funds, and a repeatable track record with city rowhomes, twins, and small multis.
Where to find real buyers in Philadelphia:
- Local REI meetups & flip tours: show up consistently, trade buy boxes, and ask who closed in the last 90 days.
- Sheriff sales & auctions: introduce yourself to active bidders—they buy cash and are used to fast timelines.
- Investor-friendly agents (Bright MLS): ask which cash buyers are still writing, their ZIP ceilings, and rehab tolerance.
- Online communities: Philly investor groups/forums—share useful market notes before you add people to your list.
- Vendors who know closers: title/escrow officers, hard-money lenders, contractors, inspectors, and property managers.
- Non-owner-occupied owners: pull landlord lists by ZIP (e.g., 19133, 19134, 19132, 19143, 19146, 19145, 19144, 19120); mail simple three-line postcards and track replies.
- Current proof of funds (bank statement/LOC/hard-money approval) dated within 30 days.
- Entity name, authorized signatory, and tax form on file (W-9/W-8BEN).
- Buy box clarity: target ZIPs, max price, beds/baths, rehab level, flip vs. BRRRR.
- Closing speed & EMD: 14–30 days typical; EMD amount ready to wire.
- Performance receipts: recent HUDs/CDs or references from title/lenders/agents.
- Structure comfort: willing to purchase assigned contracts (Act 52 compliant) or do a double close when needed.
- Title/escrow preferences (Phila-savvy teams that regularly handle assignments & back-to-back closings).
Organize your list for speed: Use a lightweight CRM or sheet with columns for name, entity, phone, email, buy box, proof-of-funds date, title preference, and notes. Tag by area so the right buyers see the right deals fast: Fishtown/Port Richmond/Kensington/Bridesburg; Brewerytown/Strawberry Mansion/Sharswood; Germantown/Mt. Airy/Nicetown-Tioga; Point Breeze/Grays Ferry/Whitman; Cobbs Creek/Cedar Park/West Powelton; Mayfair/Tacony/Oxford Circle/Lawncrest.
Subject: Philadelphia Contract — 3/1 Rowhome West Kensington 19133 — $95,000 — ARV ≈ $210,000 — 14-Day Close
Body:
1234 Sample St, Philadelphia, PA 19133 (3 bed, 1 bath, ~1,180 SF, brick row).
Asking: $95,000 | ARV: ≈ $210,000 | Est. Repairs: ≈ $55,000
Comps: three recent renovated sales within 0.25 mi (details in kit).
Access: lockbox by appt. Title: investor-friendly; assignment permitted or double close available.
Terms: EMD $5,000 | Close in 14 days | Buyer pays closing costs.
Reply “PHL 95” with POF for full address & walkthrough time.
Show up locally, verify funds, log preferences, and follow up. Do this weekly, and assignments move faster, spreads improve, and repeat buyers start calling you first.
- Simple online/offline methods to build a real cash-buyers list.
- How to vet buyers quickly and avoid tire-kickers.
- Applies directly to Philadelphia’s rowhouse-heavy market.
Find Motivated Sellers & Distressed Properties (Philadelphia)
Deals start with life events, not list prices. In Philadelphia, motivated sellers often include long-distance landlords tired of turnovers, heirs navigating probate, owners behind on taxes or utilities, and homeowners who prefer a quick, as-is sale over a retail listing. Layer the tactics below to build a steady pipeline without expensive ads.
- Driving for dollars: flag vacant/boarded brick rows, tar-and-gravel flat roofs near end of life, blue L&I violation stickers, or “water off” notices; snap photos and pin them.
- Door hangers / leave-behinds: friendly “we buy as-is” notes with a local number and one clear next step.
- Field referrals: tell investor-friendly agents, roofers, masons, plumbers, and property managers your buy box; pay referral fees where allowed.
- Landlord outreach: mail non-owner-occupied owners by ZIP (e.g., 19133, 19134, 19132, 19143, 19146, 19145) with a simple three-line postcard.
- Event networking: at meetups/flip tours, ask each attendee for two owners who might sell—log every intro in your CRM.
- MLS keywords (on-market): search Bright MLS for “as-is,” “cash only,” “investor special,” “needs TLC,” “corporate addenda.” Send clean cash offers with short inspections.
- Sheriff sale calendars & auctions: meet active bidders—many are cash buyers and close quickly.
- Skip tracing with purpose: call/text owners you flagged while driving; keep messages compliant and respectful.
- City lookups: check property records for ownership/assessments, L&I permits/violations, and zoning notes before you offer.
- Recorder & probate: scan deed history/liens and watch estates via Register of Wills leads; follow office rules for access.
- Vacancy indicators: boarded windows, piled mail, posted L&I violations, or utility shutoff tags.
- Pre-foreclosure/tax delinquency, water or gas liens, mounting code issues.
- Repairs exceed savings: flat roof leaks, brick pointing/bulging walls, outdated electric, sewer lateral concerns.
- Out-of-area owner, recent eviction, repeated turnovers, or squatters.
- Urgent timeline due to relocation, divorce, medical costs, or estate settlement.
Log every touch in a lightweight CRM: owner, contact method, condition, motivation, timeline, and price talk. Tag by area so you can match deals to buyers fast: Fishtown/Port Richmond/Kensington/Bridesburg; Brewerytown/Strawberry Mansion/Sharswood; Germantown/Mt. Airy/Nicetown-Tioga; Point Breeze/Grays Ferry/Whitman; Cobbs Creek/Cedar Park/West Powelton; Mayfair/Tacony/Oxford Circle/Lawncrest.
Compliance note: Keep marketing truthful, respect federal/PA Do-Not-Call and texting opt-outs, and never misrepresent your role. Follow Philadelphia wholesaler licensing/disclosure rules, and run campaigns by your title company and a PA real estate attorney when in doubt.
- Build an off-market pipeline without paid ads.
- Combine driving for dollars, skip tracing, and public records for reliable deal flow.
- Applies directly to Philadelphia’s rowhouse-heavy neighborhoods.
Put Properties Under Contract (Philadelphia)
This is the moment interest becomes a binding agreement. If you’re mapping out how to wholesale real estate in Philadelphia, your job is to price the deal correctly, present a simple offer, and sign an assignable purchase contract that a title company can close smoothly. Pennsylvania is a title-closing state, so aim for tight numbers (ARV, repairs, MAO), plain-English terms, and funds routed through title escrow with your assignment fee shown on the Closing Disclosure/HUD.
Price it before you write it (ARV → Buyer Target → MAO)
- ARV (After-Repair Value): Base it on the median of your top three renovated comps (or price-per-square-foot × above-grade area) in the same Philly micro-market (same style—row/twin/DET—within a tight radius and recent closings).
- Repairs: Estimate by scope (light/moderate/heavy), then refine line items (roof/flat roof, masonry/pointing, mechanicals, electric, windows, kitchens/baths, L&I items). Add a 10–15% contingency.
- Buyer Target: Many flip buyers underwrite ≈ ARV × 70–75% − repairs − soft/hold costs; BRRRR buyers use rent/DSCR. Know each buyer’s buy box.
- MAO (Maximum Allowable Offer): MAO = Buyer Target − Your Assignment Fee. If the seller won’t accept MAO, adjust terms (timeline/access) or consider a double close/novation.
- ARV = market value of fully renovated comparables.
- Buyer Target (flip) ≈ ARV × (0.70–0.75) − repairs − soft/hold.
- MAO = Buyer Target − Your Assignment Fee.
Philadelphia offer & contract flow (step-by-step)
- Identify all decision-makers & access: Confirm signers/heirs, tenant status (deliver vacant vs. occupied), and a short inspection window.
- Present benefits first: Title-managed sale, as-is condition, minimal showings, flexible closing, clear timeline.
- State a clean price & schedule: Short closing (10–30 days), realistic inspection period, and a specific EMD delivery date to title escrow.
- Send a clean, assignable PSA: Include assignment language or an assignment rider; attach required disclosures (e.g., PA Seller’s Property Disclosure for residential, Lead-Based Paint for pre-1978). Allow reasonable access for your contractors/buyers.
- Open title & wire EMD: Route funds/documents through the title company; ask title to begin municipal lien/tax/water/permit searches early.
- Choose your path: Use a straightforward assignment when everyone is comfortable with your fee; opt for a double close when privacy is preferred or assignments are restricted.
Negotiation playbook (friendly & firm)
- Lead with certainty: “Local title escrow, as-is purchase, your timeline.”
- Trade, don’t take: If price is firm, ask for more access/time; if time is tight, sweeten price slightly.
- Anchor a range: Start a bit below MAO to agree quickly without re-trading.
- Be transparent: Explain you may assign or double close; clarity builds trust.
- Write while you talk: Send the PSA the same day you get a verbal “yes.”
- Clean money trail: EMD and your assignment fee flow through title escrow and appear on the Closing Disclosure/HUD.
- Document discipline: Title coordinates the PSA, assignment, and (if used) double-close paperwork; fewer errors and less friction.
- Early issue spotting: Title surfaces liens, taxes, water/sewer, and L&I items early so you can stay on track.
Quick example: ARV = $350,000; Repairs = $45,000; Soft/Hold = $15,000. Buyer target at 72% ≈ $350,000 × 0.72 − $45,000 − $15,000 = $189,000. Your fee goal = $10,000 → MAO ≈ $179,000. If the seller signs at $170,000, you’ve created room for costs and still exceeded your fee target.
Document prep & hand-offs: Prepare a one-page deal kit: property facts, photos, three ARV comps, rehab scope, access notes, disclosure list, and known title/municipal items (screenshots from property records/L&I). It speeds title review and lets buyers underwrite in minutes.
Compliance: Market your contract, not the property; keep ads factual; route all funds through title; show your fee on the closing statement. If assignability is restricted or your spread is sensitive, use a double close.
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Assign Contracts to Cash Buyers (Philadelphia)
You’ve secured an assignable purchase agreement—now pair it with the right investor at the right price. If you’re learning how to wholesale houses in Philadelphia, your job is to make underwriting effortless: package a tight deal kit, set a decision window, verify proof of funds, and execute a clear Assignment of Contract through title escrow. Keep messaging truthful—you’re selling your contract rights, not acting as an agent or broker.
- Market the contract, not the house; keep all statements factual and non-misleading.
- Use an assignment-friendly PSA (or obtain seller consent) before marketing.
- Have title review the assignment document; hold buyer deposits in title escrow; disclose your fee on the Closing Disclosure/HUD.
Package a “deal kit” buyers can underwrite fast
- Snapshot: Address, beds/baths, above-grade square footage, lot size, property type (row/twin/detached), zoning tag, tenant status.
- Photos & condition: Current interior/exterior photos; quick notes on what works vs. what needs repair.
- ARV comps: Top three renovated sales (same style, tight radius, recent closings) with distances and close dates; include $/sf notes.
- Repair estimate: Light/moderate/heavy scope with line items (roof/flat roof, masonry/pointing, mechanicals, electric, windows, kitchens/baths, L&I items) and a contingency.
- Numbers: Your assignment price, access instructions, and a firm decision deadline (24–72 hours).
- Docs status: Signed assignable PSA, title contact, and any known liens, taxes, water/sewer or L&I issues summarized.
What your Assignment of Contract should include
- Parties & property: Your entity (Assignor), buyer entity (Assignee), seller, and full address.
- PSA reference: Date of the original PSA and confirmation it’s assignable or that consent is granted.
- Assignment consideration: Your assignment fee and the total PSA price the assignee agrees to perform.
- Deposits & timelines: Buyer deposit amount, decision/inspection window, and key PSA dates.
- Access & approvals: How/when buyer can inspect; note HOA/municipal approvals if applicable.
- Disclosures: As-is condition, summary of known liens/taxes/L&I items; assignee accepts PSA obligations.
- Title details: Name the escrow holder; originals handled by title; fee shown on CD/HUD.
Outreach that gets fast responses
Subject: Assignable Contract — 3/2 Port Richmond — $180k — ARV ≈ $300k — 48h Window
Body:
1,300 sf brick row, moderate rehab. Kit includes address, photos, repair scope, and three renovated comps (≤0.5 mi). Assignment price $180,000.
Access: by appointment. Decision window: 48 hours with a small title-escrow deposit. Reply with current POF and entity name; I’ll send the full kit and assignment draft.
— [Your Name]
When assignment makes sense (and when it doesn’t)
- Use assignment when: The seller is comfortable with your fee, the PSA allows assignment, and your buyer’s buy box is a tight fit.
- Switch to a double close when: The PSA forbids assignment, your spread is sensitive, or a buyer requires you to be in the chain of title.
Common pitfalls to avoid
- Blasting your whole list—match deals to buyer criteria first.
- Burying the lead—put price, ARV comps, and decision deadline at the top.
- Skipping POF/entity checks—verify before scheduling access.
- Vague paperwork—use a clear assignment tied to the PSA; have title review it.
Pro tip: Track every assignment in a simple spreadsheet (buyer, entity, POF date, ZIP/neighborhood tags, decision window, deposit received, title contact). Keep two backup buyers per area so a “no” doesn’t stall your clock.
Reminder: You’re selling your equitable interest in the contract. Keep communications honest, respect privacy, and coordinate through title. Save closing details for the next stage.
Close Deals & Collect Your Assignment Fee (Philadelphia)
You’ve assigned the contract—now it’s execution. In Philadelphia and across Pennsylvania, closings are typically title-company led (attorneys may assist but aren’t required). Your assignment consideration should appear as a line item to your entity on the ALTA/HUD/Closing Disclosure, and all funds should move through title escrow. Keep title, the buyer, and the seller aligned, answer curative requests fast, and always verify wire instructions by phone so your deal records cleanly and your fee lands without surprises.
Philadelphia closing timeline (title-led)
How your assignment fee is collected in Philadelphia: It’s listed as a line item on the settlement statement and disbursed by the title company from buyer funds at closing. Provide a current W-9 (or W-8BEN) so the title office can report properly.
Philadelphia closing quirks to handle early
- City & state transfer taxes: Confirm who pays what per the PSA; title will calculate and collect at closing.
- Municipal certifications: Order city tax and water/sewer certifications; clear any balances so title can insure.
- L&I & permits: Check for open violations or permits; resolve items that could delay insurance or possession.
- PGW & utility liens: Title typically pulls a gas lien letter; provide payoff contacts promptly.
- U&O / occupancy: If a use change or commercial component is involved, coordinate any required Use & Occupancy steps with title.
Wire & fraud-safety checklist
- Call the title office at a known number to confirm wiring instructions—never rely on emailed changes.
- Send your disbursement details securely; request same-day confirmation of wire release (reference number + amount).
- Use entity bank accounts that match your assignment documents to avoid compliance delays.
Common snags (and how to avoid them)
- Deposit delays: Calendar the buyer’s EMD deadline; if late, alert your backup buyers.
- Hidden liens/violations: Ask title for a curative checklist on day one; share payoff contacts immediately.
- Entity mismatches: Ensure your PSA, assignment, and ALTA/HUD/CD show identical names and EINs.
- Transfer-tax surprises: Clarify apportionment in writing and review the draft statement early.
- Review final ALTA/HUD/CD—confirm your assignment fee line and entity name.
- Confirm buyer funds and wire cut-off times with title.
- Complete any final walkthrough and collect keys/possession terms.
- Reconfirm your wire details verbally with title; ignore email “updates.”
- Save recorded deed, settlement statement, and wire receipt for your records.
Double Close When Necessary
Assignments are the simplest path for beginners, but some Philadelphia deals call for a double close (back-to-back or simultaneous closing). You purchase from the seller (A→B), then immediately resell to your investor (B→C). In Pennsylvania’s title–company–led closings, this structure protects your spread, satisfies no-assignment PSAs, and keeps institutional buyers within their guidelines.
- A→B: You buy the property from the seller and take title.
- B→C: You immediately sell to your end buyer under a separate PSA and closing package.
- Two settlements: Separate ALTA/HUD/CD for each leg; your spread is not on the A→B statement.
- Funding: Use your own funds, a partner, or short-term transactional funding for A→B; B→C proceeds repay the first leg.
When to use a double close in Philadelphia
- Spread privacy: Your margin is large/sensitive, and you prefer it off the buyer’s statement.
- No-assignment PSAs: The contract forbids assignmen,t and the seller won’t consent.
- Institutional buyers: REOs, funds, or auction sellers require you in the chain of title.
- Marketing flexibility: You plan to wholetail (light clean-up) or list on the MLS before resale.
Pros and trade-offs of double closing
How to decide—assignment vs. double close
- Choose an assignment when the PSA allows it, both sides accept your fee, and the spread is modest.
- Opt for a double close when the PSA forbids assignment, your fee is large/sensitive, or an institutional buyer requires you in the chain of title.
Pros & Cons of Wholesaling Houses in Philadelphia
Every market has trade-offs. Here’s a clear snapshot of why wholesalers like Philadelphia—and the friction points to plan for as you scale.
Philadelphia rewards wholesalers who price conservatively, pad repairs for older systems, and stay tight on compliance. Build relationships with investor-friendly title teams, keep backup buyers by ZIP, and switch to a double close when privacy or no-assignment language appears—your pipeline and reputation will benefit.
Philadelphia Resources: Title Companies, REI Groups & Tools
Build a simple, repeatable “deal ops” stack and run it on every file. The resources below are tailored to how to wholesale real estate in Philadelphia so you can stay compliant, move faster, and close confidently:
- Title companies (investor-friendly):
- Ask for processors who routinely handle assignments and double closes. Request a redacted ALTA/HUD as proof.
- Confirm in writing that your assignment fee will appear on the closing statement—no off-statement payments.
- Verify Philadelphia transfer-tax handling (City + State split), water/sewer certifications, and any tax-clearance requirements.
- Check wire cut-off times, mobile notary / RON options, and same-day funding policies with the specific Philadelphia office you’ll use.
- REI groups & networking:
- Philadelphia investor meetups and flip tours (Center City, Fishtown/Kensington, Brewerytown, West/North/Northeast Philly): collect real buy boxes and title recommendations.
- Regional associations and landlord groups (e.g., long-running investor associations across the Philly metro): attend project walk-throughs and masterminds.
- Online communities (Philly investor forums and social groups): share redacted HUDs, your criteria, and request warm introductions to proven cash buyers.
- Government & public data (Philadelphia/PA):
- Office of Property Assessment (OPA): ownership, assessments, parcel data; cross-check before offers.
- Department of Records: deeds, liens, mortgages, satisfactions; pull document history and legal descriptions.
- Atlas (City GIS): parcel maps, zoning, permits, violations, historic and flood overlays; quick address-level due diligence.
- Licenses & Inspections (L&I): permits, code cases, contractor licenses; confirm open violations early.
- Sheriff’s Sale: auction calendars, conditions of sale—network with cash bidders and track distressed inventory.
- Unified Judicial System dockets (PA): civil/landlord-tenant histories to understand risk and timelines.
- Water Revenue Bureau: water/sewer certs and payoffs that can impact closing.
- MLS & market data:
- Bright MLS: comps, pendings, and days on market; search distress keywords (“as-is,” “cash only,” “investor special”).
- Rental comps: verify rents near job/education hubs (eds & meds, logistics) for BRRRR buyers.
- Neighborhood micro-trends: block-to-block swings, historic districts, and zoning overlays that impact ARV and timelines.
- Tools (deal flow & operations):
- Skip tracing & outreach: build owner lists from driving for dollars and public records; keep messaging compliant and track opt-outs.
- CRM: tag buyers by ZIP, price ceiling, rehab level, and timeline; tag sellers by lead source and motivation.
- Public portals: use major listing sites for photos and quick checks—verify final pricing with Bright MLS before offers.
- File room: standard folders for PSA, assignment/double-close docs, IDs, disclosures, proof of funds, settlement statements, and wire instructions.
- Processes assignments and double closes weekly (ask for a redacted ALTA/HUD as evidence).
- Explicit policy to pay your assignment fee on the closing statement.
- Philly-savvy curative team: City + State transfer tax, water/sewer certs, tax-compliance checks, and quick lien/violation resolution.
- Investor timelines: 10–21 day closes, mobile notary/RON, readiness for back-to-back funding on double closes.
- Proactive communication: target dates, wire cut-offs, weekly status updates, and a single point of contact.
Locking in these Philadelphia resources gives you the backbone for repeatable wins—title partners who understand assignments and double closes, REI groups that connect you to real buyers, and data sources that keep your numbers tight. Use this stack on every deal, and you’ll move faster, stay compliant, and sharpen offers that close.
Free Download: The Ultimate Guide to Getting Started in Real Estate
Ready to take action? Grab our free, beginner-friendly quick start guide, built to help you learn how to wholesale houses in San Diego and move from “interested” to “making offers” the right way (no prior experience or big budget required).
- Why real estate works for beginners: a practical path to building long-term wealth without needing large capital or a license to start.
- Find deals without ad spend: why the MLS is the most reliable place to source opportunities (plus how to search smarter).
- Rentals for long-term wealth: how monthly cash flow and appreciation can convert today’s active income into more passive streams.
- Wholesaling basics: ARV, making data-backed offers, and choosing between assignment vs. double close.
FAQs: Wholesaling in Philadelphia
New to wholesaling in Philly, or leveling up your process? This concise, practical FAQ addresses the seven most frequently asked questions by investors when learning how to wholesale real estate in Philadelphia. Use it to stay compliant, comp deals accurately, and choose the right exit (assignment vs. double close) for each contract.
Is wholesaling real estate legal in Philadelphia?
Yes. You’re selling your equitable interest (your contract rights), not brokering the property. Use an assignable purchase agreement, market the contract (not the house), and close through title so your assignment fee appears on the settlement statement.
Do I need a Residential Property Wholesaler License in Philadelphia?
Yes, if you solicit or enter wholesale agreements with residential owners in the city. Plan on required disclosures and compliance with local do-not-solicit rules to keep your marketing and contracts above board.
Do I need a Pennsylvania real estate license to wholesale?
No, not if you’re the buyer on the contract and you sell/assign your own contract rights. Acting as a broker for others for compensation requires a real estate license.
How are assignment fees paid in Philadelphia?
Through title at closing. Your assignment fee is itemized on the ALTA/HUD/CD and disbursed to your entity—avoid off-statement payments or side deals.
When should I double close instead of assigning?
When the PSA forbids assignment, your spread is sensitive, or your end buyer requires you in the chain of title. A double close uses two back-to-back settlements (A→B and B→C) and keeps your spread private on the first leg.
What tenant and rental rules affect Philadelphia wholesale deals?
Philadelphia rentals generally require a current rental license and, for most pre-1978 rentals, a lead-safe/lead-free certification. Confirm possession terms (vacant vs. occupied) early, especially with rowhomes and small multis.
How do I comp and price wholesale deals in Philadelphia?
Use Bright MLS (or an agent partner) for tight comparables and the City’s OPA/Atlas tools for parcel, permit, and zoning data. Philly is hyper-local—keep comps close in distance, recency, property type, and condition, and treat each micro-neighborhood like its own market.
Final Thoughts on Wholesaling Houses in Philadelphia
Philadelphia blends deep demand from “eds & meds,” logistics, and government with block-by-block micro-markets where disciplined numbers still win. If you’re looking for a clear, actionable path, this playbook shows exactly how to wholesale real estate in Philadelphia—know the local rules, build a vetted cash-buyer list, lock up clean, assignable contracts, and choose between a straightforward assignment or a privacy-friendly double close when the deal calls for it.
Momentum beats perfection. Pick three target ZIP codes, study what renovated homes actually sell for, speak with an investor-friendly title company, and introduce yourself to five serious cash buyers this week. Do that, and you’re already ahead of most people still wondering how to wholesale houses in Philadelphia.
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*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.
Alex Martinez, the founder of Real Estate Skills, is known for his strong, practical expertise in real estate, starting from a beginner with no family connections in the industry to completing over 50 real estate deals, including wholesale and flips, within his first year.
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His journey from earning a modest income to becoming a successful real estate entrepreneur and educator showcases his expertise and dedication to the field.
Ryan Zomorodi, co-founder and COO of Real Estate Skills, leverages his experience from a diverse background in real estate investment, construction management, and entrepreneurship to provide comprehensive education in the real estate sector.
His expertise is rooted in hands-on experience, extensive industry knowledge, and a commitment to empowering others through education.
Ryan's journey reflects a blend of practical experience and entrepreneurial success, contributing to his role in developing a platform that educates and supports aspiring real estate professionals.
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