Step 1: Find motivated sellers
Motivated sellers need to sell quickly or as-is: inherited properties, tired landlords, vacant houses, pre-foreclosures, tax-delinquent owners, land owners who live out of state. Common ways to reach them are cold calling, texting, direct mail, driving for dollars and online ads.
Step 2: Answer and follow up fast
Most deals go to whoever responds first and keeps following up. Track every lead and every touch. In Carbon REI, an AI agent answers texts, web chat and phone calls the second a lead comes in and books a callback. How AI follow-up works.
Step 3: Run the numbers
Estimate ARV from comps, estimate repairs, and calculate your Max Allowable Offer: (ARV × target %) − repairs − assignment fee. For land, start from land sales per acre and check zoning, flood zone and access first. Use the MAO calculator.
Step 4: Get it under contract
Make your offer and sign a purchase agreement that allows assignment. Include an inspection or due diligence period so you have time to find a buyer. E-signing lets you get the seller's signature in minutes instead of days.
Step 5: Assign the contract to a cash buyer
Send the deal to buyers whose buy box fits, then sign an assignment contract with the buyer who takes it. Your assignment fee is the difference between your contract price and what the buyer pays. Assignment contracts explained.
Step 6: Close with a title company
Send the purchase agreement and assignment to a wholesale-friendly title company. They handle the title search and closing, and you are paid your assignment fee at closing.
Is wholesaling legal?
Wholesaling is legal in most of the U.S., but several states and cities regulate it, for example by requiring disclosures or a license in some situations. Laws change, so check your state's rules and use contracts reviewed by a local real estate attorney. This guide is general information, not legal advice.
Run every step in one place
Carbon REI is a wholesaling CRM that covers this whole process: AI follow-up, MAO calculator, deal pipeline, e-sign contracts, a 4,000+ cash buyer network and a title company directory. New wholesalers also get the 14-Day Start Kit, SMS Scripts and MAO Cheat Sheet.
"This CRM is the best purchase of my career. Went from 1-2 leads a month to 5+ contracts a week."
Individual result. Results vary and are not guaranteed.
Frequently asked questions
How do wholesalers make money?+
Wholesalers earn an assignment fee: the difference between the price in their contract with the seller and the price the cash buyer agrees to pay.
Do you need money to wholesale real estate?+
Wholesaling usually needs little capital compared with flipping, since you assign the contract rather than buy the property, but you will spend on marketing, tools and earnest money.
How long does a wholesale deal take?+
It depends on the market and your buyers. Having buyers ready before you contract, like the 4,000+ buyers in Carbon REI, shortens the time to assign.