How to Wholesale Homes for Beginners: A Step-by-Step Guide

Wholesaling real estate is one of the fastest ways to break into the industry with little to no money or credit. If done correctly, it can generate significant profits without the need to own or rehab properties. In this guide, we’ll walk you through the basics of wholesaling homes and how you can get started today.

What Is Wholesaling Real Estate?
Wholesaling is a real estate investment strategy where you find deeply discounted properties, get them under contract, and then assign (or sell) that contract to a cash buyer for a fee. Unlike flipping, you never actually own the property—you’re simply the middleman connecting motivated sellers with investors.

Step-by-Step Process for Beginners

1. Educate Yourself

Before jumping in, learn the fundamentals of wholesaling. Understand key terms like ARV (After Repair Value), MAO (Maximum Allowable Offer), and assignment contracts. A great resource is the book If You Can’t Wholesale After This: I’ve Got Nothing For You by Todd M. Fleming, which provides a step-by-step blueprint for new wholesalers.

2. Find Motivated Sellers

The key to wholesaling is finding distressed properties where the owner is motivated to sell quickly. You can find these sellers through:

Direct mail campaigns (letters to absentee owners, probate leads, etc.)
Driving for dollars (looking for distressed properties in person)
Online marketing (Facebook ads, Craigslist, bandit signs)
Networking (real estate agents, foreclosure attorneys, etc.)

3. Analyze the Deal

Once you find a potential property, determine its After Repair Value (ARV) and calculate your Maximum Allowable Offer (MAO). A common formula is:

MAO = (ARV × 70%) – Repair Costs – Wholesale Fee

Example:

ARV = $200,000
Repairs = $30,000
Wholesale Fee = $10,000
MAO = ($200,000 × 0.70) – $30,000 – $10,000 = $100,000

4. Get the Property Under Contract

Present your offer to the seller and negotiate terms. Once agreed, sign a purchase agreement with an assignment clause (allowing you to sell the contract to another buyer).

5. Find a Cash Buyer

Build a list of cash buyers (investors, rehabbers, landlords) who want discounted properties. You can find them through:

Local real estate investor meetups
Facebook groups
Real estate wholesaling platforms (like PropStream or DealMachine)

6. Assign the Contract & Collect Your Fee

Once you have a buyer, assign the contract to them for a fee (typically $5,000–$20,000). The buyer handles the closing, and you walk away with your profit—no credit, no repairs, no holding costs!

Why Wholesaling Is Great for Beginners

✅ Low startup costs (no need for your own money or credit)
✅ Fast profits (deals can close in weeks)
✅ No long-term risk (you never own the property)

Want to Go Deeper? Read If You Can’t Wholesale After This

If you’re serious about wholesaling, Todd M. Fleming’s book If You Can’t Wholesale After This: I’ve Got Nothing For You is a must-read. It breaks down the exact steps to finding deals, negotiating with sellers, and building a profitable wholesaling business—even if you’re starting from scratch.

Click Here to Get the Book Now

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