Start Real Estate Wholesaling

Gurus overhype it, so serious people dismiss it; the real work is consistent seller outreach and knowing your state's contract rules.

1. 1

   Learn your state's rules first

   Some states now require a license or strict disclosure to assign contracts. Read your state's statute before marketing a single deal; this is where beginners get burned.

2. 2

   Pick one target zip code

   Learn what fixed-up houses actually sell for there (ARV) by studying 90 days of comps. You cannot make offers if you cannot value the exit.

3. 3

   Build a cash buyer list

   Collect 10 to 20 active investors from REI meetups, auction attendees, and 'we buy houses' signs. Ask what they buy and at what discount so you know your real customer.

4. 4

   Start seller outreach

   Drive for dollars in your zip, log distressed properties in an app like DealMachine, and send consistent mail or texts. Deals come from repetition, not luck.

5. 5

   Master the contract

   Use a purchase agreement with an assignment clause, small earnest money, and an inspection period. Have a local title company that handles assignments review it once.

6. 6

   Make offers with real math

   Offer around 70 percent of ARV minus repair costs minus your fee. Expect 20 to 30 conversations per accepted contract.

7. 7

   Assign and close your first deal

   Send the signed contract to your buyer list, collect a $5,000 to $15,000 assignment fee at closing, and reinvest part of it into more seller marketing.