How to Make Money Wholesaling Real Estate (Step-by-Step Guide)

[Jeremy Beland]

Most people believe that real estate investing requires huge capital, perfect credit, and years of experience. But what if you could generate consistent cash flow without ever owning a property?

That’s where wholesaling real estate comes in—a powerful strategy that allows beginners to flip contracts for profit without needing a mortgage or massive upfront investment.

In this guide, Jeremy Beland, a real estate investing expert, walks you through the exact steps to close your first wholesale deal and start making money in real estate.

What is wholesaling? 

Wholesaling is a strategy where investors find undervalued properties, negotiate a contract with the seller, and assign that contract to a cash buyer for a profit. You’re essentially acting as the middleman between distressed property owners and real estate investors.

✅ You don’t need to buy the property.
✅ You don’t need to fix anything.
✅ You don’t need a real estate license in most states.

Instead, you get paid a “wholesale assignment fee” for connecting the right buyer with the right deal.

Step 1: Finding Motivated Sellers

The key to wholesaling success is finding sellers willing to sell at a discount. These are often:

🔹 Homeowners facing foreclosure
🔹 Landlords dealing with problem tenants
🔹 People inherited properties they don’t want
🔹 Sellers with vacant or distressed homes

Best ways to find discounted properties? 

1️⃣ Driving for Dollars – Look for run-down, vacant, or neglected homes in your area.
2️⃣ Direct Mail Campaigns – Send letters or postcards to absentee owners and distressed sellers.
3️⃣ Cold Calling & SMS Marketing – Contact property owners and ask if they’d consider selling.
4️⃣ Online Marketing & Social Media – Run Facebook or Google ads targeting motivated sellers.
5️⃣ Networking with Agents & Investors – Build relationships with realtors and wholesalers who can bring you deals.

🚀 Pro Tip: Always focus on solving the seller’s problem rather than just getting a low price. Wholesaling is about creating win-win situations!

Step 2: Analyzing the deal & making an offer

Once you find a motivated seller, you need to run the numbers to make sure it’s a good deal.

How to calculate a wholesale offer price? 

The 70% Rule is a simple formula to ensure your deal is profitable:

💰 Maximum Allowable Offer (MAO) = (ARV x 70%) - Repair Costs - Wholesale Fee

Where:
✅ ARV (After Repair Value) = The property’s market value after renovations.
✅ Repair Costs = Estimated cost of fixing up the property.
✅ Wholesale Fee = The profit you want to make on the deal (usually $5,000 - $30,000).

Example Deal:

• ARV: $200,000
• Repairs: $30,000
• Wholesale Fee: $10,000

📝 Your MAO = ($200,000 x 70%) - $30,000 - $10,000 = $100,000 offer price.

If the seller accepts, you lock up the deal with a contract.

Step 3: Finding a cash buyers

Once you have a property under contract, it’s time to assign the deal to a buyer.

How to build a cash buyers list? 

🏡 Attend Real Estate Networking Events & Meetups
📢 Post in Facebook & LinkedIn Real Estate Groups
💰 Reach Out to Local Investors & Flippers
📍 Use Craigslist & Real Estate Forums
🚀 Use Bandit Signs (“Fixer-Uppers for Sale – Call Me!”)

The more active buyers you have, the faster you can assign deals and the more money you can make!

Step 4: Closing the deal and getting paid!

After finding a buyer, you’ll sign an Assignment of Contract Agreement and send everything to a title company or closing attorney.

On closing day, the buyer pays the seller and your wholesale fee gets wired to you. That’s it!

💰 Common Wholesale Fees:
✅ $5,000 - $10,000 for small deals
✅ $10,000 - $30,000 for mid-range deals
✅ $30,000+ for large multi-property or high-end deals

🚀 Your first wholesale deal could happen in as little as 30-60 days!

Common wholesaling mistakes to avoid? 

🚨 Overpaying for properties – Run the numbers carefully!
🚨 Not using the right contracts – Protect yourself legally.
🚨 Skipping due diligence – Always verify title & property condition.
🚨 Not having a buyers list – Build relationships BEFORE you lock up a deal.
🚨 Overpromising sellers – Be honest about your intentions.

✅ The best way to avoid mistakes? Learn from experienced investors & take action!

Is wholesaling right for you? 

If you want to break into real estate investing with little to no capital, wholesaling is a great strategy. It teaches:

✅ How to find undervalued deals
✅ How to negotiate real estate contracts
✅ How to connect with cash buyers & investors

But remember—wholesaling is not a get-rich-quick scheme. It requires consistent effort, learning, and persistence.