How to Wholesale Real Estate in 2025: Zero to First Deal

Step 1: Learn Your Market and Build Buyer List: Study your target area's sold comps, rental rates, and rehab costs. Wholesaling works best in areas with active fix-and-flip investors. Before finding deals, build your buyer list - these are cash investors who will buy your contracts. Join local real estate investing groups on Facebook, attend REIA meetings, and connect with hard money lenders who work with active buyers. You need 20-30 qualified buyers before you start marketing for deals.

Step 2: Find Motivated Sellers: Motivated sellers have distressed properties or urgent situations (probate, divorce, inherited property, pre-foreclosure). Use driving for dollars to find vacant/distressed homes, skip trace to find owner contact info, then call/text/mail. Alternatively, run Facebook ads or Google PPC targeting motivated seller keywords. Your offer: fast cash close with no repairs needed. You're solving their problem, not trying to steal their property - focus on situations where your solution provides value.

Step 3: Analyze Deals and Make Offers: Use the 70% rule: After Repair Value x 0.70 - Repair Costs = Maximum Allowable Offer. Your assignment fee comes from the spread between your contract price and what buyers will pay. Example: $200k ARV x 0.70 = $140k - $30k repairs = $110k MAO. You offer seller $95k, assign to buyer for $105k, earn $10k fee. Make 20-30 offers before expecting acceptance. Most sellers say no - this is a numbers game.

Step 4: Get Property Under Contract and Assign: Use purchase agreement with assignment clause allowing you to assign contract rights. Put $500-$1,000 earnest money down (get it back at closing). Immediately market to your buyer list via text/email with property photos and numbers. Experienced wholesalers have deals assigned within 24-48 hours. Close at title company who handles assignment paperwork. You receive assignment fee at closing without ever owning property.