Wholesaling real estate can be a profitable strategy for beginners and seasoned investors alike in 2024. This comprehensive guide covers everything you need to know to get started successfully—from beginner-friendly steps to expert insights and virtual wholesaling tips.
What Is Wholesale Real Estate?
Wholesale real estate is a strategy where an individual (the wholesaler) contracts a property and then sells that contract to an end buyer, usually an investor. The wholesaler earns a profit by marking up the price of the contract. This process allows wholesalers to earn money without owning the property or making repairs.
Wholesale Real Estate Example
You find a distressed property listed for $150,000. You negotiate a contract with the seller at $120,000. Then, you assign the contract to an investor for $140,000. You make a $20,000 profit—without ever owning the property or making any repairs.
What Are the Step-by-Step Instructions for Wholesaling Real Estate in 2024?
1. Research Your Market
Understand your local real estate market, identifying areas with high demand and potential investment opportunities.
2. Find Distressed Properties
Look for undervalued or off-market properties. Strategies include:
- Driving for dollars
- Foreclosure auctions
- Direct mail to absentee owners
3. Negotiate with Sellers
Build rapport and present a compelling, fair offer. Understand seller pain points and communicate how your solution helps.
4. Secure a Purchase Agreement
Use a contract that includes an “assignment clause” allowing you to transfer the agreement to another buyer.
5. Build Your Buyer’s List
Network with real estate investors via:
- Facebook real estate groups
- Local REIAs (Real Estate Investor Associations)
- LinkedIn or real estate forums
6. Market the Contract
Present the deal clearly to your buyer list, including:
- Asking price
- Repair estimates
- ARV (After Repair Value)
7. Close the Deal
Coordinate with all parties involved to ensure a smooth closing process, transferring the contract to your buyer.
How Can Beginners Start Wholesaling Real Estate Successfully in 2024?
Understand the Basics
- Learn common terms: assignment fee, earnest money deposit, ARV
- Study your state’s legal requirements (some require a license)
Use the Right Tools
- DealMachine, REIPro, PropStream, and CRM software can help manage leads and marketing
Start with a Small Budget
You don’t need a lot of money. Focus on:
- Driving for dollars
- Networking
- Cold calling or texting campaigns
Get a Mentor or Join a Community
Learning from experienced investors can shorten your learning curve.
What Is the Best Way to Wholesale Real Estate in 2024?
- Combine traditional and virtual wholesaling techniques
- Focus on markets with high rental demand
- Build strong seller and buyer pipelines
- Use social media to amplify your deals
- Automate follow-ups and lead nurturing
How to Virtually Wholesale Real Estate in 2024
Virtual wholesaling removes the need for in-person meetings. Here’s how to do it:
Use Online Tools
- Zoom for meetings
- DocuSign for e-signatures
- Google Drive or Dropbox for document sharing
Conduct Virtual Tours
- Use FaceTime, Zoom, or pre-recorded videos
- Hire a local contractor to walk through the property with a camera
Leverage Social Media
- Post deals in Facebook groups or Instagram Stories
- Use paid ads to generate motivated seller leads
Communicate Constantly
Use WhatsApp, email, or CRM tools to stay connected with sellers, buyers, and your team.
Common Mistakes to Avoid When Wholesaling in 2024
- Not vetting your buyers
- Misjudging ARV or repair costs
- Failing to check local wholesaling laws
- Using unclear contracts
Real Estate Wholesaling Glossary (Key Terms)
- Assignment Fee: Your profit for selling the contract
- EMD (Earnest Money Deposit): A deposit made to show serious intent
- ARV (After Repair Value): Estimated value of the property after renovations
- Double Closing: Purchasing and reselling a property on the same day
Recommended Tools for Real Estate Wholesalers
- DealMachine – Lead generation through driving for dollars
- PropStream – Property data, comps, and owner info
- Podio/REsimpli – CRM to manage leads and communication
- BatchLeads – SMS marketing and skip tracing
FAQ About Wholesaling Real Estate in 2024
Is wholesaling legal in all states?
No, some states require a real estate license to wholesale legally. Always check your state’s laws or consult a real estate attorney.
How much money do I need to start wholesaling?
You can start with as little as $100–$500 for marketing and tools.
Can I wholesale with bad credit?
Yes. You don’t need to qualify for a loan or own property.