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Lesson 11 of 15

What is Wholesaling?

Our core business model explained - how we make money connecting sellers with buyers.

Wholesaling Defined

Wholesaling is finding properties at a discount, getting them under contract, then assigning that contract to an end buyer (flipper or landlord) for a fee. We never actually own the property.

The Wholesaling Process

1

Find a Motivated Seller

Marketing, cold calling, driving for dollars

2

Analyze the Deal

Calculate ARV, repairs, and MAO

3

Make an Offer

Present offer at or below MAO

4

Get Under Contract

Seller signs purchase agreement

5

Find a Buyer

Market to buyer list (flippers/landlords)

6

Assign the Contract

Buyer pays your contract price + assignment fee

7

Close & Get Paid

Title company handles closing, you get your fee

Example Deal Flow

You contract with seller at:$160,000
You assign to buyer at:$175,000
Seller receives at closing:$160,000
YOUR FEE:$15,000

Why Wholesaling Works

For Sellers

  • • Fast closing (2-3 weeks)
  • • No repairs needed
  • • No agent commissions
  • • Cash offer, no contingencies
  • • Solves their problem quickly

For Buyers (Flippers/Landlords)

  • • Pre-vetted deals
  • • Below market prices
  • • Ready to close immediately
  • • No need to do their own marketing
  • • Deal flow without the work

Common Misconceptions

  • "You need money to wholesale" - No! You're assigning contracts, not buying property.
  • "You're taking advantage of sellers" - No! You're solving their problem when nobody else will help.
  • "It's a scam" - No! It's a legitimate real estate strategy used nationwide.

Key Takeaway

Wholesaling is matchmaking. Find motivated sellers, connect them with cash buyers, get paid for solving problems. You're the middleman who makes deals happen.

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