Wholesale Real Estate: How It Works, Examples, & Step-By-Step Guide

Wholesale real estate is the process of securing a purchase contract on a home and assigning that contract to another buyer for a profit. 

This strategy is one of the fastest ways to break into real estate investing without needing huge capital, perfect credit, or years of experience. Instead of buying and holding property, 

In 2025, wholesale real estate remains a popular entry point for new investors and a smart diversification strategy for seasoned pros.

Done right, it offers quick deal cycles, low overhead, and scalable income opportunities. Done wrong, it can result in wasted time, missed profits, and potential legal trouble, especially in states with strict real estate marketing and licensing laws.

Wholesale Real Estate Overview: What, Why, How

• What it is: Secure a property contract and assign it to another buyer for a fee—without owning the property.
• Who it’s for: New investors, part-time side hustlers, and flippers seeking quick-turn deals.
• How it's done: Research market ➜ Build buyers list ➜ Find deals ➜ Negotiate ➜ Assign ➜ Close
• Profit Range: Typically $5,000–$25,000 per deal (varies by market and spread).

 This guide breaks down how wholesaling real estate works, how to get started, and what it takes to succeed.

Whether you’re brand new or just need a clearer game plan, you’ll learn everything you need to launch your first deal with confidence, starting with the following:

• Wholesale Real Estate Definition
• Who Is Wholesale Real Estate For?
• How Wholesale Real Estate Works
• How To Wholesale Real Estate In 8 Steps
• Wholesaling Real Estate Example
• Pros & Cons Of Wholesaling Real Estate
• Expert Wholesaling Tips For Beginners
• How To Start Wholesaling Real Estate In Your Area
  
• Wholesaling Real Estate: FAQs

Wholesale Real Estate Definition

Wholesale real estate is a strategy where an investor, known as the wholesaler, finds a property, negotiates a purchase contract with the seller (often for below market value), and then assigns that contract to another buyer for a profit.

These properties are usually distressed, undervalued, or owned by someone eager to sell quickly, making them ideal for real estate investors looking for rehab opportunities or deals with strong upside.

Instead of buying the home themselves, the wholesaler uses a small earnest money deposit (EMD) to lock in the deal, then markets that contract to a network of cash buyers or investment partners.

When the contract is reassigned, the wholesaler earns a wholesale fee, which is entirely negotiable (we aim for $10,000 per deal).

The appeal of wholesaling real estate lies in its low barrier to entry, no need for hefty capital, and, in most areas, no license is required (though understanding local laws is essential).

For anyone interested in real estate investing without the risk of taking on a mortgage or renovation project, wholesaling offers a flexible, fast-paced path to building experience and income in the property world.

Read Also: Is Wholesaling Real Estate Legal in Your State?

Who Is Wholesale Real Estate For?

Wholesale real estate can be an ideal entry point for certain types of investors and entrepreneurs. It rewards those who are resourceful, proactive, and willing to learn fast.

Wholesale Is Best Suited For:

• Beginners with limited capital: Only a small earnest money deposit and marketing budget are typically needed.
• Networkers and negotiators: Success often comes from building strong relationships with sellers, buyers, and agents.
• Investors seeking quick returns: Many wholesale deals close in 30 days or less.
• Problem-solvers: Helping distressed owners find a win-win solution is a core skill.

Who Should Reconsider Wholesaling:

• Those seeking passive income: Wholesaling is active, high-energy work, not a “set it and forget it” strategy.
• People uncomfortable with sales or negotiation: Deals hinge on direct communication and persuasion.
• Those unable to handle time pressure: Contracts have strict deadlines; delays can kill deals.

How Wholesale Real Estate Works

In its simplest form, wholesaling real estate is about securing a property under contract and then transferring that contract to another buyer for a profit. Here’s the typical process:

1. Identify a distressed property: Use public records, agent connections, or direct marketing to find motivated sellers who need to sell quickly.
2. Negotiate the purchase contract: Agree on a price low enough to leave room for your buyer’s profit margin. Include clear assignment language if you plan to assign the contract.
3. Assign or double close:
   • Assignment: You transfer your contract rights to the buyer and collect an assignment fee at closing.
   • Double close: You purchase the property yourself and immediately resell it to your buyer—often used if the seller or buyer prefers not to disclose your fee.
4. Close the deal: The title company or closing attorney finalizes the transaction, and you receive your profit.

*PRO Tip: Many wholesalers choose assignment for speed and low cost, while a double close can be safer when assignment isn’t feasible or privacy is preferred.

If You Want to Start Wholesaling Real Estate Today, Download This Free Guide First

If you're ready to take action but aren't sure where to begin, we’ve created a free downloadable resource to help you start wholesaling real estate the right way. Our How To Wholesale Real Estate & Legalities Guide gives you the contracts, step-by-step breakdowns, and legal insights you need to wholesale deals with confidence—no guesswork required.

Click the image below to download your FREE copy and start wholesaling with clarity today.

How To Start Wholesaling Real Estate (8 Steps)

Experts at Real Estate Skills, along with veterans in the industry, have compiled the most comprehensive explanations for each step in the process. Let's break down the 8 steps to wholesaling real estate:

1. Start Your Journey With A Trusted Wholesale Mentor
2. Learn Wholesaling Laws, Regulations, & Agreements
3. Research Your State's Real Estate Market Trends
4. Build A Cash Buyers List
5. Discover Distressed Properties & Tap Into Motivated Seller Leads
6. Submit Offers & Put Properties Under Contract
7. Secure An End Buyer From Your Buyers List
8. Seal The Deal & Get Paid

 

1. Start Your Journey With A Trusted Wholesale Mentor

A wholesale real estate mentor can accelerate your success by guiding you through every step of the process, from finding deals to closing them profitably. While articles and videos are useful, nothing replaces direct, one-on-one guidance from someone who has successfully completed dozens (or hundreds) of wholesale transactions.

Why Work With a Mentor?

• Skip costly mistakes: Learn proven strategies and avoid common beginner errors that can cost time and money.
• Access insider knowledge: Get market-specific tips, contract templates, and negotiation tactics that aren’t found online.
• Leverage their network: Mentors often connect you to reliable buyers, sellers, title companies, and contractors.
• Build confidence: Having an expert review your deals helps you make informed, low-risk decisions.

How to Find the Right Mentor

• Attend local REI (Real Estate Investor) club meetings and networking events.
• Join online wholesaling communities on Facebook, LinkedIn, or BiggerPockets.
• Look for mentors who actively wholesale in your target market—not just “coaches” without recent deals.
• Ask for references and review their past deals before committing.

*Pro Tip: Many successful wholesalers credit their first major breakthrough to a mentor who helped them analyze deals, negotiate contracts, and build a buyer's list. In wholesaling, the right guidance early on can mean the difference between slow progress and rapid success. 

Read Also: Wholesale Real Estate Mentor: The ULTIMATE Beginner's Guide

2. Learn Wholesaling Laws, Regulations, & Agreements

Successful wholesalers don’t just focus on profits. They make sure every deal is ethical, legal, and fully compliant.

Wholesaling regulations can vary widely from state to state, and California’s rules are different from Texas, Florida, or any other market.

Understanding these laws protects your business, your reputation, and your long-term success.

Why Legal Knowledge Matters

• Avoid legal trouble: Non-compliance can result in fines, lawsuits, or being barred from certain transactions.
• Build trust: Ethical, transparent deals make you a preferred partner for sellers, buyers, and agents.
• Close faster: Knowing exactly what’s required in your state reduces delays and contract issues.

How to Learn the Rules in Your Market

• Review your State Real Estate Commission website for licensing and advertising rules.
• Check HUD (U.S. Department of Housing & Urban Development) and NAR (National Association of Realtors) for compliance guidelines.
• Understand the difference between assignment of contract and double closing, and when each is allowed.
• Work with a real estate attorney experienced in wholesaling to review contracts before use.

Key Agreements Every Wholesaler Should Know

• Purchase & Sale Agreement (PSA):  The main contract between you and the seller.
• Assignment of Contract:  Transfers your contractual rights to the end buyer for a fee.
• Joint Venture (JV) Agreement:  Used when partnering with another wholesaler on a deal.
• Non-Circumvention Agreement: Protects your relationship with sellers and buyers from being bypassed.

*Pro Tip: Keep a “legal compliance” checklist in your CRM or deal tracker. Before marketing or assigning any property, confirm all disclosures, contracts, and state-specific requirements are complete.

Download Our FREE Advanced Wholesale Contract Bundle! (Attorney-Approved Contracts for Wholesaling In Any State)

3. Research Your State's Real Estate Market Trends

Success in real estate wholesaling requires understanding your local real estate market. Profitable wholesale deals come from your ability to read, predict, and act based on market trends. Successful investors capitalize on emerging opportunities while minimizing risk.

• Start by diving deep into local demographics. It's more than just numbers; it's about understanding the fabric of the community.
• Population growth trends, employment statistics, and key economic markers will shine a light on the state's economic health, helping you foresee the demand for wholesale properties.
• Understand supply and demand dynamics in the area. This clarity allows you to tailor your approaches to the specific needs of sellers and buyers in the area.
• Use online platforms, like the National Association of Realtors (NAR) and other reliable real estate data sources.
• Engage with Realtors, property managers, and fellow investors. Their first-hand market experiences can guide you toward ripe opportunities and away from potential pitfalls.

Remember, knowledge isn't just power; it's profit!

Read Also: The Best States To Wholesale Real Estate

 

4. Build A Cash Buyers List

Your cash buyers list is the engine that keeps your wholesale real estate business running. Without ready and willing wholesale buyers, even the best property deals can stall. The bigger, more engaged, and more qualified your list, the faster you can close, and the more deals you can do.

How to Find Cash Buyers for Wholesale Real Estate

• Engage in Targeted Outreach: Use focused email campaigns to reach investors who match your property types and locations. Segment your list by investment criteria for better response rates.
• Network at Local Events: Attend real estate investor meetups, REI clubs, and auctions. Exchange business cards and follow up within 24 hours to build trust.
• Create a Digital Presence: Launch a simple, SEO-optimized website with clear calls to action for investors to join your list. Include property previews or case studies to boost credibility.
• Use Proven Traditional Marketing: Cold-calling and strategically placed bandit signs still work. Place signs in high-traffic areas near investment-friendly neighborhoods.
• Leverage Social Media: Join Facebook investor groups, LinkedIn real estate communities, and Instagram REI pages. Share deals (within legal guidelines) and engage with active buyers.
• Run Direct Mail Campaigns: Send postcards or letters to known investors and recent cash buyers from public records. Keep your message concise and benefit-driven.

Nurture Your Wholesale Buyers List

Once you’ve built your list, keep it warm with consistent, value-driven communication. Share market trends, investment tips, and new deal alerts. The goal is to become your buyers’ first call when they’re ready to purchase.

Vet Your Buyers Before Closing

• How quickly can they close?
• Do they have a proven track record with wholesalers?
• What’s their exit strategy for the property?
• Do they have verified proof of funds?

A strong, well-managed buyers list doesn’t just help you close deals; it makes you a valuable connector in your market.

Build it, nurture it, and protect it, and your wholesaling business will have a competitive edge for years to come.

Download Now: How To Talk To & Secure Cash Buyers For Your Wholesale Deals!

5. Discover Distressed Properties & Tap Into Motivated Seller Leads

Distressed properties and motivated sellers are the foundation of profitable wholesale real estate deals. They often offer below-market pricing and faster closing timelines—two key ingredients for a successful assignment or double close.

Why Target Distressed Properties?

Distressed homes are typically in need of significant repairs, making them less attractive to retail buyers. Because of this, they can be purchased well below fair market value. Once renovated, these properties can see dramatic increases in value, allowing wholesalers to create deals with large profit margins for end buyers.

Why Work with Motivated Sellers?

Motivated sellers—whether facing foreclosure, probate, relocation, divorce, or financial hardship—often prioritize speed and certainty over top-dollar offers. This urgency creates opportunities for wholesalers to negotiate favorable terms while helping the seller solve a pressing problem.

By combining online tools, in-person scouting, and strong networking, you can consistently source high-quality wholesale opportunities. Every distressed property or motivated seller you uncover could be the next win-win deal that grows your business.

Read Also: How To Find Distressed Properties: 10 Best Strategies For Real Estate Investors

6. Submit Offers & Put Properties Under Contract

Once you’ve identified a strong lead, a distressed property with a motivated seller, the next step is turning that lead into a legally secured opportunity.

In wholesale real estate, success often comes down to making the right offer at the right time and locking it in with a well-structured contract. 

Step 1: Crunch the Numbers

Start by calculating the After Repair Value (ARV) based on comparable recent sales. Then, determine your Maximum Allowable Offer (MAO)—the highest price you can offer while still leaving room for your assignment fee and your end buyer’s profit margin. Use our free ARV calculator to speed up the process.

Step 2: Draft a Strong Offer

Your offer should clearly state the purchase price, contingencies, and closing terms. Include a modest Earnest Money Deposit (EMD) to show commitment and build trust. Ensure the numbers make sense for all parties: the seller, the end buyer, and you.

Step 3: Use the Right Contracts

In wholesaling, your paperwork does more than agree on a sale—it gives you the legal right to control the property and transfer that right to another buyer. Two main contracts are used:

• Wholesale Purchase Agreement: Outlines property details, price, financing terms, contingencies, and closing date. Always include inspection and financing contingencies to protect yourself.
• Assignment of Contract: Allows you to transfer your purchase rights to an end buyer. It should include the original purchase agreement for transparency and clearly state your assignment fee.

Download our free wholesale real estate contract template for reference.

Step 4: Account for Adjustments

Well-written contracts allow for prorated property taxes, utility adjustments, and other closing costs. This ensures there are no surprises at the closing table.

Submitting offers in wholesale real estate is a balance of accurate valuation, clear communication, and airtight contracts. When you master the numbers and paperwork, you’ll be able to move quickly, reduce risk, and close more deals—keeping both sellers and buyers confident in working with you.

7. Secure An End Buyer From Your Buyers List

Once you’ve put a property under contract, the next step in the wholesale real estate process is finding a qualified end buyer to take over the deal. This is where your cash buyers list (built through consistent networking and marketing) becomes your most valuable asset.

Understand Equitable Interest

Through your purchase agreement, you hold what’s called "equitable interest" in the property. While the seller retains legal title, your contract gives you the right to purchase—and the ability to assign that right to another buyer. This legal standing is what allows wholesalers to profit without ever taking full ownership.

Leverage Your Buyers List

Reach out to the investors, agents, and cash buyers you’ve cultivated. Focus on matching the deal to the right buyer’s criteria—whether they specialize in fix-and-flip projects, rental properties, or land development.

• Email or text blast: Send out a property sheet with photos, key numbers (price, ARV, estimated repairs), and closing timeline.
• Direct calls: Personally call top buyers who can close quickly.
• Investor meetups & REI groups: Present the deal to active investors in your network.

Use an Assignment of Contract

When you’ve found the right buyer, execute an Assignment of Real Estate Purchase and Sale Agreement. This document transfers your contractual rights and obligations to the end buyer in exchange for your assignment fee. Be transparent—share the original purchase agreement, all contingencies, and the exact terms so the buyer knows what they’re agreeing to.

Build Long-Term Relationships

Every smooth transaction strengthens trust with your buyers. Provide accurate information, meet your timelines, and communicate clearly throughout the process. A well-served buyer is far more likely to purchase from you again and refer others.

Think of wholesaling as a relay race: you’ve secured the property and run your leg of the deal. Passing the baton to a capable buyer—quickly and professionally—is how you finish strong, get paid, and set up the next win.

8. Seal The Deal & Get Paid

The final stage of a wholesale real estate transaction is where your planning, negotiations, and networking turn into profit. This is the point where contracts close, funds are transferred, and your wholesale fee hits your account.

Calculate Your Wholesale Fee

Most wholesalers earn 5%–10% of the property’s sale price or a flat amount between $10,000 and $15,000. The key is reverse-engineering your offer:

1. Determine the end buyer’s maximum price based on After Repair Value (ARV), repairs, and profit goals.
2. Subtract your desired fee.
3. The result is your Maximum Allowable Offer (MAO) to the seller.

Using tools like a wholesale real estate calculator can help you validate your numbers before making an offer.

Finalize the Paperwork

Before closing day, confirm that all required documents are complete:

• Executed Assignment of Contract or Purchase Agreement
• Any local/state disclosures
• Title company or attorney closing instructions
• Your wholesale fee clearly listed in the settlement statement

Close and Collect

Once the buyer funds the transaction and the title company disburses payment, your wholesale fee becomes real—whether it’s $5,000 or $50,000. Each closed deal boosts your reputation, making it easier to attract sellers and buyers for future transactions.

*Pro Tip: Document your process after every closing. Track what worked, where you lost time, and how you can improve your next deal. Over time, this will shorten your deal cycle and increase your profits.

Read Also: How To Start A Wholesale Real Estate Business

What Is An Example Of Wholesaling Real Estate?

Sometimes, wholesaling real estate can sound abstract until you see the numbers and process in action.

Here’s a real-world style example that shows how a wholesaler solves problems for sellers, delivers value to investors, and earns a profit without owning the property.

The Seller’s Situation

Meet Ms. Smith, a long-time homeowner with a property in a great neighborhood but in serious need of updates. She’s emotionally attached to the home, doesn’t want the stress of repairs, and isn’t comfortable listing it publicly. She wants a quick, hassle-free sale.

The Wholesaler’s Solution

As a wholesaler, you research the property and find the After Repair Value (ARV) is about $400,000. Local cash buyers are actively looking for properties in this area. You offer to purchase the home for $250,000, promising a fast, as-is closing. Ms. Smith accepts.

Applying the 70% Rule

• 70% of ARV: $400,000 × 0.70 = $280,000
• Estimated repairs: $60,000
• Maximum Allowable Offer (MAO): $280,000 – $60,000 = $220,000

Because Ms. Smith accepted $250,000, you know there’s still profit potential for an investor willing to pay more than your contract price.

Finding the End Buyer

You market the contract to your buyers list. Within days, an experienced house flipper agrees to buy for $290,000. They see the value in putting in $60,000 of work for a resale potential near $400,000.

Calculating Your Wholesale Fee

• Contract price with seller: $250,000
• Assignment price to investor: $290,000
• Your profit: $40,000—earned without making repairs or taking ownership

The Takeaway

This wholesale real estate example shows how you can:

• Help a motivated seller avoid repairs and delays
• Provide a ready-to-renovate deal to a real estate investor
• Earn a substantial fee for connecting both parties

Wholesaling isn’t just flipping contracts; it’s solving problems, building relationships, and creating win-win transactions in the real estate market.

Read Also: Wholesaling Real Estate: Step-by-Step PDFs [FREE DOWNLOAD]

Pros & Cons of Wholesaling Real Estate

Embarking on a journey in real estate wholesaling? Here's a comprehensive look at the perks and pitfalls you might encounter.

Pros Of Wholesaling Real Estate

• Easy Start: It's an excellent avenue for beginners to step into the real estate world.
• Market Flexibility: Close deals in any market, no matter where you're based.
• Low Initial Costs: Get started with minimal upfront investment, reducing your financial risk.
• Quick Profits: The chance to earn good money in a shorter timeframe.
• Learn as You Earn: Gain insights into the real estate business as you work.
• Independence: Take control of your career trajectory.
• Networking: Develop and expand a list of potential investors over time.
• No Renovations Needed: Avoid the hassle and cost of property fixes and modifications.

Cons Of Wholesaling Real Estate

• Income Stability: Many wholesaling roles are commission-based, meaning no fixed income.
• Research Required: It demands significant legwork to identify the right properties and buyers.
• Learning Curve: It takes time and experience to streamline the process and grow a reliable buyer's list.
• Competition: The growing popularity of wholesaling can intensify the race for quality deals.
• Dependency on Others: Your success is partly tied to property owners' understanding and comfort with the wholesaling concept, as well as investors' readiness to purchase.
• Licensing: Most states don't require licensing, but some states may necessitate one to get into wholesaling.
• Profit Margins: Typically lower than other real estate endeavors like house flipping.

Read Also: The Pros & Cons Of Wholesaling Real Estate: An Investor's Guide

How To Succeed In Wholesaling: Expert Tips For Beginners

Transforming your aspirations into a thriving real estate career all starts with proper research and education. These expert, wholesale real estate tips will build the foundation for you to succeed:

• Always Consult Your Mentor: Diving into real estate wholesaling can feel overwhelming. Aligning with a seasoned mentor or coach can be a game-changer. They not only provide insights into the intricacies of wholesaling but also guide you through potential pitfalls. Partnering with those possessing a wealth of leads or access to platforms like the Multiple Listing Service can propel your success.

• Establish A Strong Online Presence: In today's digital age, a professional online footprint is paramount. Beyond the conventional business cards, a dedicated wholesale real estate website can boost your credibility. It serves as an information hub for prospects, a platform for lead generation, and a bridge connecting you with potential investors and sellers.

• Adopt A Future-Focused Approach: One successful deal can pave the way for countless others. Recognize the impact of your actions today on tomorrow's opportunities. Always operate with utmost integrity, ensuring you meet or exceed the expectations of all involved parties.

• Champion Transparency: In the world of wholesaling, clarity is king. Ensure your intentions are always transparent. As the saying goes, if you have nothing to hide, you hide nothing.

• Understand The Boundaries: Wholesaling isn't about selling properties, it's about selling contracts. It's essential to grasp that unless you're the property's owner, marketing the real estate requires a license. Instead, focus on marketing your equitable right to buy the property.
• Keep Growing: Personal attributes like goal-oriented thinking, organizational skills, technological affinity, and an eagerness to learn can significantly enhance your wholesaling journey. Remember, each wholesaling experience is a learning opportunity, aiming for a win-win outcome for both sellers and buyers.

Read Also: Wholesaling Real Estate For Beginners: How To Get Started In 8 Steps

How To Start Wholesaling Real Estate In Your Area

The process of wholesaling real estate can vary depending on your market.

Review the comprehensive guides Real Estate Skills has created for your state to get a head start in your market!

• How To Wholesale Real Estate In Alabama
• How To Wholesale Real Estate In Alaska
• How To Wholesale Real Estate In Arizona
• How To Wholesale Real Estate In Arkansas
• How To Wholesale Real Estate In California
• How To Wholesale Real Estate In Colorado
• How To Wholesale Real Estate In Connecticut
• How To Wholesale Real Estate In Delaware
• How To Wholesale Real Estate In Florida
• How To Wholesale Real Estate In Georgia
• How To Wholesale Real Estate In Hawaii
• How To Wholesale Real Estate In Idaho
• How To Wholesale Real Estate In Illinois
• How To Wholesale Real Estate In Indiana
• How To Wholesale Real Estate In Iowa
• How To Wholesale Real Estate In Kansas
• How To Wholesale Real Estate In Kentucky
• How To Wholesale Real Estate In Louisiana
• How To Wholesale Real Estate In Maine
• How To Wholesale Real Estate In Maryland
• How To Wholesale Real Estate In Massachusetts
• How To Wholesale Real Estate In Michigan
• How To Wholesale Real Estate In Minnesota
• How To Wholesale Real Estate In Mississippi
• How To Wholesale Real Estate In Missouri
• How To Wholesale Real Estate In Montana
• How To Wholesale Real Estate In Nebraska
• How To Wholesale Real Estate In Nevada
• How To Wholesale Real Estate In New Hampshire
• How To Wholesale Real Estate In New Jersey
• How To Wholesale Real Estate In New Mexico
• How To Wholesale Real Estate In New York
• How To Wholesale Real Estate In North Carolina
• How To Wholesale Real Estate In North Dakota
• How To Wholesale Real Estate In Ohio
• How To Wholesale Real Estate In Oklahoma
• How To Wholesale Real Estate In Oregon
• How To Wholesale Real Estate In Pennsylvania
• How To Wholesale Real Estate In Rhode Island
• How To Wholesale Real Estate In South Carolina
• How To Wholesale Real Estate In South Dakota
• How To Wholesale Real Estate In Tennessee
• How To Wholesale Real Estate In Texas
• How To Wholesale Real Estate In Utah
• How To Wholesale Real Estate In Vermont
• How To Wholesale Real Estate In Virginia
• How To Wholesale Real Estate In Washington
• How To Wholesale Real Estate In West Virginia
• How To Wholesale Real Estate In Wisconsin
• How To Wholesale Real Estate In Wyoming

Read Also: 17 Best Cities To Wholesale Real Estate

Wholesaling Real Estate: FAQs

At this point, don’t be intimidated if you have a barrage of questions. From understanding basic concepts to deciphering intricate details, Real Estate Skills is here to help you educate yourself and, ultimately, get you the financial freedom you’ve been striving for!

Whether you're a beginner wholesaler or a seasoned investor looking for a refresher, these most commonly asked questions can provide the clear, concise answers you need!

What Does “Wholesaler” Mean In Real Estate?

In real estate, a wholesaler acts as a middleman. They buy properties at a discount and resell them for a profit, typically one property at a time. Usually, they sell to professionals, like fix-and-flippers, who renovate and prep the property for future residents.

What Is An Assignment Of Contract?

An assignment of contract lets a wholesaler transfer their rights to buy a property to another buyer. It involves three parties:

• Assignor (the wholesaler)
• Assignee (the new buyer)
• Seller (the property's owner)

While contracts often allow these assignments, some may need the seller's consent or disallow assignments.

What Is Double Closing?

Double closing involves two steps: the wholesaler first buys the property and then quickly sells it. They must have funds ready for the first purchase. This method is pricier than the assignment but provides more confidentiality about profits and clear roles in the transaction. Consulting a real estate lawyer is recommended for legal protection.

Do You Need A License To Wholesale Real Estate?

No, in most real estate markets around the United States, you do not need a license to wholesale real properties. Most states accept the distinction between real estate wholesaling and the role of the real estate agent (or Realtor) acting as a fiduciary when representing a client as a buyer or seller.

That is, except for Illinois, Philadelphia, and Oklahoma, where wholesalers will need to meet licensing requirements to wholesale legally and at scale.

Is Wholesaling Real Estate Legal?

Yes, wholesaling real estate in most locations is a legal and often profitable investment strategy. The key to staying legal is to avoid actions that would rise to the level requiring a state-issued real estate license.

Wholesaling real estate is legal if the wholesaler's actions do not violate real estate laws and licenses. A real estate wholesaler has the legal right to market or to sell their “right to purchase” the property. This legally transferable asset is completely different from selling real estate.

If a real estate wholesaler markets or sells an asset they possess – the ‘equitable interest' in the property, it is a legitimate real estate investment maneuver.

Real estate and license laws vary widely from state to state, so research and understand relevant laws and the customary procedures in your marketplace.

Where Can You Get A Wholesale Real Estate Contract?

Real Estate Skills offers FREE downloadable PDF versions of the wholesale real estate contracts our experts have used time and time again for real estate deals.

A wholesale real estate contract includes a tremendous amount of information that typically includes:

• The property's legal description and mailing address.
• The is given in good faith.
• The seller's item, if applicable.
• The financing terms and other contingencies, to name a few.

When the real estate contract has been fully executed, the wholesaler, who has found an alternate end buyer, can assign their “equitable interest/title” to the new buyer for a fee agreed to by the wholesaler and the end buyer.

To get yourself started today, be sure to download all the wholesale contracts you need straight from us!

Can You Start Wholesaling Houses With No Money?

Yes, you can begin wholesaling houses without investing your own money in the property. Wholesalers connect homeowners with buyers, and it's the buyer who covers the property price and the wholesaler's fee.

However, while you don't need capital for the property, there might be costs for advertising, marketing, and other essentials. Investing in these areas can increase your chances of success in wholesaling.

How Do Real Estate Wholesalers Make Money?

Wholesalers primarily earn through an assignment fee. After locking in a wholesale contract with a seller, they can assign this contract to end buyers, like flippers. The negotiated assignment fee between the wholesaler and the buyer is the wholesaler's main income source.

How Much Money Can You Make Wholesaling Real Estate?

Wholesale earnings vary based on factors like local markets and individual skills. While there's no set salary, The Motley Fool suggests annual incomes can range from $21,500 to $98,500.

Wholesalers typically earn through assignment fees, often 5-10% of the property's price, or a flat fee, which can be around $10,000 to $15,000 per deal. However, these figures are broad estimates, and real incomes can differ.

Read Also: Wholesale Real Estate Salary: How Much Can You Make Wholesaling?

How Hard Is It To Wholesale Real Estate?

Wholesaling real estate can be an attractive investing option, especially for entrepreneurial-minded investors. It offers a streamlined approach with its short-term timeline, low capital needs, and no renovation requirements.

While it simplifies some real estate complexities, success demands dedication and staying within legal boundaries.

Read Also: 17 Best Wholesaling Real Estate Books You Must Read

Is Real Estate Wholesaling Worth It?

If you’re wondering whether wholesaling real estate is worth your time, the answer comes down to one thing: opportunity. Wholesale real estate gives aspiring investors a way to break into the market without needing a large down payment, perfect credit, or years of experience. Instead of waiting on the sidelines, wholesalers learn how to evaluate properties, negotiate deals, and connect buyers—all essential skills for any successful real estate entrepreneur.

What makes wholesaling real estate especially valuable is that it teaches you how to recognize and secure deals—skills that will carry over whether you decide to keep wholesaling, start flipping houses, or build a rental property portfolio. Even if you plan to transition into long-term strategies later, learning how to wholesale houses first can give you the financial foundation and real-world experience you need to grow.

Many of our students have proven just how powerful this strategy can be. Take Chase and Diana, for example—two investors who closed two wholesale deals in California and walked away with $40,000 in profit. They didn’t start with years of experience or deep pockets—just the right training and a willingness to take action.

So, is wholesaling worth it? If you're serious about getting started in real estate and want to create opportunities instead of waiting for them, the answer is a resounding yes.

Final Thoughts On Wholesale Real Estate

Wholesaling real estate might feel overwhelming at first, but with the right training, tools, and mindset, it can be your launchpad into a rewarding real estate career. It’s one of the few investment strategies that offers a low barrier to entry, making it perfect for those with limited capital but big ambitions.

Wholesale real estate allows new investors to build experience, sharpen their deal-making skills, and start earning income—all without owning property. Every successful wholesaler once stood where you are now: at the starting line, fueled by curiosity and the courage to take that first step.

So if you're ready to break into real estate investing, wholesaling could be the smartest way to begin.

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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.