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How to Wholesale Houses

When you have wanted to get into real estate, but do not have a lot of money to get started with, then learning how to wholesale houses might be your best option. This is a form of real estate investing where you locate discounted properties and then put them under contract via a third-party buyer. Before closing, the wholesaler will then sell their property interest to a cash buyer or real estate investor.

Wholesale Real Estate for Beginners

In many cases, real estate wholesaling will not involve selling or buying houses. Instead, the wholesaler will sell contracts with the right to buy property via a third party. This is usually a real estate investor or cash buyer. The wholesaler is then able to collect a fee for work performed.

Are You Looking to Learn How to Wholesale Houses?

You will usually find that many wholesale transactions will have a similar pattern. These are some of the steps that are involved with real estate wholesaling:

  • Identify any motivated sellers. Sellers like to get top dollar for their property, but they could take some time to sell. Motivated sellers could want to sell quickly with little hassle, and this is where a wholesaler can help by selling the contract via a cash buyer.
  • Making an offer. Before you invest in wholesale real estate, you need to look over the property and estimate how much an investor will have to put into renovations.
  • Enter into a contract. After the seller and wholesaler come to an agreement, each party signs an agreement. This agreement gives the real estate wholesaler permission to find a third-party buyer.
  • Contract assignment to a buyer. This is when you find an investor that would like to buy the property so that you can assign them the contract. This means the buyer can purchase the property for whatever price is listed in the contractor. If you are the wholesaler, you can earn what is known as an assignment fee once you sell buying rights.
  • Property closing. The closing may occur with a real estate attorney and a title company. As a wholesaler, you would not be involved in the closing. However, wholesaling real estate will have a contract handoff between the investor and wholesaler. Closing on such a deal can be a bit more complicated than a traditional home purchase.

Know the Pros and Cons of Wholesale Real Estate

There are several pros and cons that anyone should consider when looking into wholesaling houses. Including:


  • You will not need a real estate license
  • You do not have to get financing for the property
  • There is less personal money at risk with these transactions
  • You can build up a network for your real estate business


  • Locating deals can be tough when the market is competitive
  • There are advertising limitations when you don’t own a property
  • It may be difficult to gain access to a property for showings

Do you want to know more about how to wholesale houses? Real Estate Disruptors is here to help! Get in touch with us to make more money and get ahead in the real estate world. Call (480) 725-4464 to sign up for our sales training seminar.

How to Wholesale Houses

Real Estate Disruptors 

9280 S Kyrene Rd Ste 117

Tempe AZ 85284   US

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