Real Estate Wholesaling: The Step-By-Step Process

If you're eager to start making money in real estate without needing a ton of capital, real estate wholesaling could be the perfect entry point. It's one of the fastest ways to break into the industry—and you don’t need to buy or fix up properties to get started.

Instead of becoming a landlord or taking on risky renovations, wholesalers focus on finding great deals and connecting them with motivated buyers—for a profit. It’s a smart, low-risk strategy that’s ideal for beginners looking to generate cash and gain experience in the market. But like any new venture, success comes from understanding the process, having the right strategy, and avoiding common mistakes.

That’s where this guide comes in. If you’ve been searching for a clear path to follow, we’ll walk you through real estate wholesaling step-by-step—from how to find deals, to how to talk to sellers, to how to close your first assignment.

Whether you're brand new or simply looking for a better way to get started in real estate, this step-by-step breakdown will give you the tools and confidence to take action. Let’s dive in:

• What Is Wholesale Real Estate Investing?
• How To Wholesale Real Estate Step By Step
• How To Wholesale Real Estate With No Money
• Is Wholesaling Real Estate Easy?
• Is Wholesaling Real Estate Legal?
• Can You Wholesale Real Estate Without A License?
• Pros And Cons Of Wholesaling Real Estate
• Wholesale Real Estate: FAQ
• How To Create Win-Win-Win Scenarios When Wholesaling Real Estate?
• Final Thoughts

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

What Is Wholesale Real Estate Investing?

Wholesale real estate investing is a strategy where you act as the middleperson between a motivated property owner and an eager real estate investor. Instead of buying the property yourself, you secure it under contract—often at a discounted price—and then assign that contract to another buyer for a fee. That fee is your profit, and when done right, the process can be repeated over and over without ever owning a property.

The beauty of this model is that you’re not swinging hammers, applying for mortgages, or dealing with tenant headaches. You're simply learning how to spot opportunities, negotiate deals, and connect the dots—all valuable skills in the world of real estate investing.

At Real Estate Skills, we teach people how to approach real estate wholesaling step-by-step so they can create what we call “Win-Win-Win” scenarios: a win for the seller, a win for the buyer, and a win for you—the wholesaler.

Ready to see how the process works from beginning to end? Let’s take a deeper dive into how real estate wholesaling works—and how you can start doing deals yourself.

8 Steps To Wholesaling Real Estate

Wholesaling can be a little tricky when starting out because it feels like there's so much to do! When starting wholesaling, what should you do first? I made the wholesaling process simple for you by breaking it down into 8 steps here:

1. Get Educated & Find A Wholesale Mentor
2. Find Cash Buyers & Build A Cash Buyers List
3. Find A Distressed Property Or Motivated Seller
4. Make Offers On The Properties Your Cash Buyers List Wants
5. Negotiate With The Seller
6. Get The Wholesale Real Estate Deal Under Contract
7. Close The Wholesale Deal - 3 Ways
8. Collect Your Wholesale Fee of $10,000+ (Average Amount)

Step 1: Get Educated & Find A Wholesale Mentor

If you go into wholesaling blindly, you may unknowingly miss or lose great opportunities, which is both frustrating and demoralizing. So, take the time to learn the ropes of the trade. Read real estate wholesaling books, listen to wholesaling podcasts, join real estate meetups and masterminds where seasoned wholesalers discuss important and emerging topics regarding the industry, and, more importantly, get a wholesale mentor.

A good mentor will encourage you to grow and reach your potential. When it comes to wholesaling real estate for beginners, a mentor can very easily show them what to do and especially what not to do. A mentor will also walk you through various state and local real estate regulations and key wholesaling processes so that deal closing is easier for you.

That said, you can either get a one-on-one mentor or join a professional wholesaling mentorship program. The former is a great option if you prefer individualized attention, while the latter is excellent if your goal is to learn wholesaling, while simultaneously building your network, but you have to pay for it.

Step 2: Find Cash Buyers & Build A Cash Buyers List

“Begin with the end in mind” - Stephen Covey, Author of the 7 Habits of Highly Effective People.

Always begin with the end in mind! When you wholesale a deal, a cash buyer is the company or person that will buy your property from you. These are the real estate investors you will talk to when you have wholesale houses for sale. You need to begin with the end in mind by knowing exactly what types of properties they like to buy.

Here’s a list of qualifying questions you can ask Cash Buyers in order to get their buying criteria:

• What areas (zip codes, neighborhoods, etc.) do you like to buy in?
• What types of properties are your favorite to buy?
• How many deals per month can you handle?
• What type of return on investment are you typically looking for on your properties once you renovate & resell them?
• Do you purchase properties with your own capital, or do you borrow capital?
• What types of properties will you absolutely not do? (cracked slabs, new builds, additions, cracked pools, septic tanks, death in property, etc.,)
• How quickly can you close on a great wholesale deal?

These are the questions you need to ask your cash buyers in order to understand their buying criteria and know the exact properties they like to buy. Now, you need to find cash buyers. So, how do you find them?

How To Find Cash Buyers:

You can find Cash Buyers by utilizing these 4 strategies:

• Your Local REIAs (Real Estate Investors Association Meetings)
• MeetUp.com
• Call Bandit Signs you see (these are the signs on the side of the road that say “We Buy Houses All Cash 555-5555” – or something very similar)
• Go to Craigslist and call on the ads that say “We Buy Houses”

Also, check out this quick video that talks about how you can find cash buyers for free!

Step 3: Find A Distressed Property Or Motivated Seller

With a solid cash buyers list ready, the only thing between you and a successful first deal is the investment property. And to find one, you’ll need to search the market for motivated sellers. Target distressed homes, pre-foreclosures, and foreclosure properties in your search since most owners are usually in a hurry to sell and likely to accept any offer you present. As you gradually become better at wholesaling, add absentee-owner and for-sale-by-owner properties to your target list, as the owners are also usually willing to sell if presented with a good offer.

Step 4: Make Offers On The Properties Your Cash Buyers List Wants

Great job! From Step 1, you know what your top cash buyers like to buy with confidence because you took the time to communicate with them. Now, it's time to FIND the deals and make OFFERS on the properties your cash buyers want to buy.

Here are some of the best ways to find real estate wholesale deals:

• Using The MLS (Multiple Listing Service)
• Networking (going to REIAs, MeetUp.com, etc.)
• Facebook Ads
• Google Ads
• Website With Lead Capture
• Direct Mail (Snail Mail) Campaigns
• Bandit Sign Campaigns
• Craigslist Marketing
• Referral Marketing
• Social Media Marketing
• Driving For Dollars

As mentioned above, there is a multitude of ways to get wholesale deals. What's most important is that you stick to one or two strategies and then systemize and automate those marketing streams completely before going to the next one. This is how you build a sustainable wholesale real estate business that makes you wealthy.

Let’s say you use the MLS (Multiple Listing Service) to find deals. The MLS is the best database of leads out there! Any home that is on the market is listed on the MLS. A lot of investors say they hate the MLS because they are unfamiliar with this lead source. However, if you want deals on demand and with predictability, then I highly recommend the MLS as a source for wholesale real estate deals.

Now that you know your cash buyers' buying criteria, you can search directly on the MLS for the properties that fit their criteria.

Step 5: Negotiate With The Seller

Wholesaling is a well-paying strategy, but how much you make per deal depends on how good a deal you can negotiate with the seller. This is because you only get to keep the difference between the seller’s price and the sale price as your assignment fee.

At the same time, you cannot mark up the sale price beyond market value since most potential home buyers are also investors looking to make money from the same property. Try to negotiate an offer between 40% and 60% below the asking price so you can comfortably market it at a higher price.

Step 6: Get The Wholesale Real Estate Deal Under Contract

Whatever wholesale contract you go with, be sure that this important language is in there:

• The right to assign the contract to someone else.
• An inspection contingency allows you to back out of a deal if something comes up that is unexpected.

The contract is always the “law of the land.” Meaning, that you have to abide by what is written on the contract and what you and the seller agree to on that contract. The only way that a contract can be changed is if something is crossed out and initialed/signed by both parties acknowledging the change. Even then, I recommend using addenda that is signed by all parties if any changes need to be made to the wholesale contract.

Step 7: 3 Ways To Close The Wholesale Deal

The three most common ways to wholesaling a real estate deal are:

1. Assigning the wholesale contract
2. Double Closing (also called a simultaneous closing)
3. Entity Assignment

Assigning the contract is when you transfer the rights to buy the property to another investor for a wholesale fee. Your name is then taken off the contract and the other investor replaces you in the contract. You may have heard of “how to invest in real estate with no money.” Well, here is one of the best ways to do it! You can get a property under contract, assign it, and make $10,000 in a week or two without spending $1. Isn’t that great?

Double closing is when you close on the property in your name and then close once again with the investor who wants to buy it from you. Most of the time, you do not need any of your own cash to purchase the property.

In a double closing situation, you line up 2 escrows back to back, so you immediately close on the seller’s property in your name and then immediately sell the property to your investor cash buyer at a surplus. When done correctly, you can use all of the investor’s funds without having to use any of your own capital.

Some escrow companies and investors are not too keen on doing a double close with only one person’s money. In this particular situation, you can always close on the first property with your own capital and then close immediately with the investor’s money, and then, the investor will own the property. This can be difficult if you do not have the capital to outright buy the deal, so there are actually companies that will provide this sort of transactional funding for you. The transactional funding company may charge you a couple of percentage points on the money you borrow, but at least you get the wholesale real estate deal done!

The third way you can close a wholesale deal is when you do an Entity Assignment. This is when you create an LLC, get the property under contract with the LLC, and then assign the membership rights of that LLC to the new investor. This is particularly useful when dealing with a seller who refuses to assign the contract or if you're dealing with legalities that do not allow you to assign or double close on the deal.

Step 8: Collect Your Wholesale Fee

Make sure your hard work is rewarded! The average wholesale fee is 5% to 10% of the total price of the property.

The best house flippers who renovate property actually make it a goal to wholesale property every month to keep consistent cash flow coming into their real estate investing businesses! A lot of renovations can take at least a few months to complete, so doing wholesale deals that typically close in 2 weeks or less provides a steady stream of capital to their investing business!

Once again, I recommend wholesaling to anyone who wants to get started in real estate. You can do it with $0, and it's basically risk-free when done correctly. Be sure to always include a contingency in your wholesale contract that allows you to back out if unforeseen circumstances happen, and also make sure your contracts are assignable! Review this step-by-step guide about the wholesaling process, and you'll be in great hands!

*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 Webinar Training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

How To Wholesale Real Estate With No Money

Got no capital for wholesaling? Worry not because wholesaling requires little to no capital. To wholesale real estate with no money, start by researching the target area to determine whether market conditions are ideal for property wholesaling. If yes, do further research to find out the type and the condition of properties investors in the area prefer, and while at it, ensure you build a buyer’s list. Next, search the market for distressed or foreclosure properties since most of the owners are often motivated sellers.

Negotiate an offer once you find the ideal property, and ensure you start low to achieve a healthy profit margin. Finally, market the property to potential buyers, and assign it to the one you find ideal to close the deal. When you close a wholesale real estate deal through an assignment of contract, another buyer is putting up all of the money to close. Unlike double closing, an assignment of contract creates a clause in one contract where the seller can negotiate with the end buyer. This permits the wholesaler to serve as a middleman and purchase property without the risk of upfront costs.

If you're double closing the property, a wholesaler can borrow all of the money needed from a hard money lender, private money lender, or transactional lender. This is called using other people's money (OPM). Even at the highest level of real estate investing, the savviest investors leverage other people's investment capital to complete deals.

Read Also: How To Wholesale Real Estate With No Money

Is Wholesaling Real Estate Easy?

Wholesaling is one of the best real estate investing techniques because it requires no previous experience and is not capital-intensive. Additionally, it has quick turnarounds, as most deals take no more than three months to close.

However, to excel, wholesalers need to actively search the market for not just any leads but motivated seller leads. They also need to create, maintain, and continuously update a solid cash buyer’s list, which makes wholesaling pretty tough for beginners. On the upside, wholesaling properties gets better, and easier, the more experienced you become, and the larger your network gets.

Is Wholesaling Real Estate Legal?

Yes, wholesaling real estate is legal. As an experienced wholesaler and real estate investor, I know that some are skeptical about wholesaling and real estate investing. Over the years, I’ve coached aspiring and professional wholesalers and heard every excuse under the sun why wholesaling shouldn’t work. But guess what? They ARE all excuses… not reasons. Wholesaling is legal and can work in every real estate market.

Many who think wholesaling is illegal are thinking about the process in the wrong way. For example, those who think wholesaling is illegal usually believe that a wholesaler is trying to act as a real estate agent or broker in the transaction, but this is not the case. A real estate wholesaler is not selling a house or a piece of property. See, selling a piece of property is actually the job of a licensed real estate agent or broker, however, a wholesaler is only selling the equitable interest in a contract to buy a property. Do you see the difference?

To repeat, wholesaling real estate is legal because this is the process of selling the equitable contract rights to buying a property, and not selling the property itself! Be sure not to get it twisted because many get confused about this concept. Also, be sure to take everything you hear about wholesaling being illegal with a grain of salt because, usually, everything stems from this common misunderstanding we just cleared up!

Can You Wholesale Real Estate Without A License?

Yes, you can wholesale real estate without a license. As previously mentioned, a real estate wholesaler is not doing the work of a licensed agent or broker. In fact, many who get their start in real estate investing begin by wholesaling since it can be done without using any money.

In addition to not having to use any capital (or a nominal amount), there's a very quick turnaround time from when you get a property under contract to when you are able to sell the wholesale contract. This is a big positive about wholesaling because you can make money quickly as opposed to waiting months to buy/sell the property as a real estate agent.

Pros & Cons Of Wholesaling Real Estate

Wholesaling properties, like most real estate investing strategies, have both benefits and challenges. Some benefits include:

• No barriers to market entry: wholesaling requires no license, degree, or experience, making it a viable option for nearly every aspiring investor
• No cash or credit required: as long as you know how to find motivated sellers and build a buyer’s list, you can wholesale real estate with little to no money. A poor credit score is no limitation either since you don’t need financing.
• An opportunity to gain experience: wholesaling properties allows beginners to gain valuable lead generation, and deal marketing experience. It also enables them to learn how to negotiate deals, and handle real estate documentation, and transactions.

Some disadvantages of wholesaling real estate include:

• Unpredictable income: wholesaling is a well-paying strategy, but how much you make depends on the offers you negotiate. Additionally, there’s no telling when you’ll find a deal. It might take you weeks or months depending on market conditions meaning you cannot entirely rely on it if you’re just a beginner
• Finding buyers is no walk in the park: a solid cash buyer’s list is key to every wholesaler’s success, but building one isn’t straightforward, especially for newbies with no network to tap from
• There are risks: when you contract a wholesale property, the deal is to sell it within the agreed contract period, failure to which you may have to repay the seller from your own pocket.

Real Estate Wholesaling Step-By-Step: FAQs

1. Do You Need A Real Estate License To Wholesale Houses?

No, you don’t need a real estate license to wholesale houses since wholesale real estate essentially involves selling or assigning the rights to purchase a property to an end buyer, in most cases, another investor. But while it’s not a prerequisite, it’d be a good idea to get one since it opens up more investing opportunities.

Note, if a licensed real estate agent were to wholesale a property, they’d be required to disclose their profession as it’s illegal for them to market properties they may have a financial interest in.

2. Do I Need A Real Estate Agent To Wholesale?

No, you don’t need a real estate agent to start wholesaling properties. However, it pays to have one since they’ll speed up the buyer-finding process, enabling you to close the deal sooner than you would if you were to single-handedly wholesale the property.

3. How Much Money Can I Make Wholesaling Real Estate Per Property?

Most wholesalers earn an average of 5% to 10% of the total price of the property. However, what you make may be above, within, or below this range depending on your wholesale marketing techniques, the volume of properties you wholesale annually, your target location, and the market purchase price point.

4. What Are The Documents Needed For Wholesaling Real Estate?

As noted, wholesaling real estate essentially involves assigning the rights to buy a property to the end buyer. You’re neither, the seller, nor the buyer. In that light, you will need a wholesale contract, which is technically, a purchase and sale agreement from the property owner.

Unlike a standard purchase contract which only indicates the transfer of property ownership from one individual to another, a purchase and sale agreement grants a wholesaler the rights to legally transfer a property’s sale contract to the end buyer.

5. How Do I Structure A Wholesale Real Estate Contract?

A wholesale real estate contract is essentially a purchase and sale agreement, which means you should include your legal name and address, as well as the seller's name and address. It should also feature a property description, deed type, the marketable title, information about any deposits or earnest money you may have paid, and financing terms. The contract should also include a contingency clause highlighting financing, inspection, and other contingency details.

How To Create Win-Win-Win Scenarios When Wholesaling Real Estate

You create a win for the seller of the property because you are getting them out of a sticky situation. For example, the seller can be facing foreclosure and need to sell their home quickly to avoid ruining their credit for years. Maybe the property is owned in trust with six different owners, and instead of putting the property on the market and evaluating 20 different offers, they may just want to work with you with no commissions involved.

You also create a win for the real estate investor you’re selling the wholesale contract to. This investor wants to renovate the property and make a profit. A majority of the time, their profit will be larger than your wholesale fee (what you get paid), but your wholesale fee can be larger at times. As long as your investor (the person buying the deal) makes the return on investment that they need, then they should not care about how much money you make from the wholesale deal.

For example, let’s say you get a property under contract at $250,000, and your cash buyer will buy the property at $300,000. Well, then you can get a $50k wholesale fee for finding that deal and getting it under contract. Keep in mind that the investor is taking on more risk by either using their own capital or borrowing capital to buy, fix, & flip the deal. They have to make a profit on the deal, and in order to run a great wholesaling business, you want everyone to win. Don't forget this!

You’re also creating a win for yourself. You found the deal! You got it under contract! You did some of the hardest work! Also, what I believe to be the MOST IMPORTANT WORK! No investor (your cash buyer) can make money without the DEAL.

When you get the wholesale deal, the ball is in your court. You can wholesale the property or renovate it. All in all, you create a win for yourself by taking home a wholesale fee.

Final Thoughts On Real Estate Wholesaling Step-By-Step

Learning real estate wholesaling step by step gives you a clear, actionable path to start building income in real estate without needing to buy property or take on debt. From finding motivated sellers to assigning contracts for a profit, wholesaling is a powerful entry point for new investors. Like any business, success comes with practice, consistency, and the right guidance. If you’re ready to take the next step, remember—at Real Estate Skills, we’re here to walk you through every part of the process so you can close deals with confidence and build lasting momentum.

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

*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.