30 Day Wholesale Action Plan

Real estate wholesaling is one of the most accessible entry points into real estate investing, requiring minimal capital while offering substantial profit potential. If you've been wondering how to break into this lucrative business, this guide will walk you through everything you need to know to get started.

What is Real Estate Wholesaling?

Real estate wholesaling is the practice of finding deeply discounted properties, getting them under contract, and then assigning that contract to an end buyer (typically an investor) for a fee. You're essentially the middleman who connects motivated sellers with cash buyers, earning anywhere from $5,000 to $20,000+ per deal without ever owning the property.

Step 1: Master the Fundamentals

Before diving in, you need to understand key concepts:

Contract Assignment: This is your bread and butter. You'll put a property under contract with the seller, then assign your rights to purchase to another buyer for a fee.

After Repair Value (ARV): The estimated value of a property after renovations are complete. This determines how much investors will pay.

The 70% Rule: Most fix-and-flip investors follow this rule, paying no more than 70% of ARV minus repair costs. This gives you a framework for making competitive offers. In more competitive markets you will want to do more precise calculations. For that feel free to check out my OfferXpert calculator.

Step 2: Build Your Cash Buyer Network

Your success hinges on having ready buyers. Start building your network immediately:

• Attend local real estate investor meetups and REIA groups

• Connect with contractors, real estate agents, and property managers

• Search public records for recent cash purchases in your area

• Join Facebook groups and online forums for local investors

• Network at property auctions and foreclosure sales

Create a simple buyer's list with their contact info, preferred areas, property types, and budget ranges. Aim for at least 10-20 solid buyers before pursuing your first deal.

Step 3: Find Motivated Sellers

Motivated sellers are the key to finding below-market deals. Focus on these lead sources:

Digital Marketing: Use Facebook ads, Google Ads, or SEO-optimized websites to attract sellers searching for quick cash sales. (By far the most efficient way these days).

Networking: Build relationships with real estate agents, probate attorneys, and other professionals who encounter motivated sellers. (My second most favorite way to find deals).

Online Platforms: Monitor Craigslist, Facebook Marketplace, and FSBO sites for motivated sellers.

Direct Mail: Send postcards or letters to targeted lists like absentee owners, pre-foreclosures, or high-equity homeowners. Expect a 1-3% response rate.

Driving for Dollars: Drive through neighborhoods looking for distressed properties, then research owners and contact them directly.

While not as popular or as effective in the digital age, these last two methods still work.

Step 4: Analyze and Make Offers

When you find a potential deal, analyze it quickly but thoroughly:

1. Estimate ARV using recent comparable sales

2. Calculate repair costs (consider hiring a contractor for estimates on your first few deals)

3. Apply the 70% rule to determine maximum investor pay

4. Subtract your wholesale fee (typically $5,000-$15,000) to determine your offer

Make offers quickly and don't be afraid of rejection. You might need to make 20-30 offers to get one accepted, especially when starting out. With the need to crank out that many offers speed is the key. The OfferXpert again can save you time and really speed up the process.

Step 5: Get Properties Under Contract

Use a standard purchase agreement with these key clauses:

• Inspection period: 7-14 days to thoroughly evaluate the property and line up one of the buyers on your list.

• Inspection contingency: Protects your earnest money if you can't secure a buyer.

• Assignment clause: Allows you to transfer your contract rights

• "And/or assigns": Add this after your name on the contract

Put down minimal earnest money ($100-$1,000 is often sufficient) and ensure all contingencies protect your deposit.

Step 6: Market to Your Buyers

Once under contract, immediately market to your buyer network:

• Send property details, photos, and profit analysis to your entire buyer's list

• Post in investor Facebook groups and online forums

• Contact buyers who've purchased similar properties in the area

• Consider hosting a property walkthrough for multiple interested buyers

Price your assignment fee appropriately. New wholesalers often succeed with $5,000-$10,000 fees while building their reputation.

Step 7: Close the Deal

Coordinate with a title company or real estate attorney familiar with wholesale transactions. They'll handle the assignment paperwork and ensure all parties get paid correctly at closing.

Common Beginner Mistakes to Avoid

Overestimating ARV: Be conservative with your estimates. It's better to lose a deal than lose money.

Underestimating repairs: Always get professional estimates for major repairs like roofing, HVAC, or structural issues.

Weak buyer network: It’s important to begin building your buyer network from the beginning. This way when you put a property under contract you have a reasonable assurance that someone will take the deal.

Poor marketing: High-quality photos and detailed property information are essential for attracting buyers.

Legal oversights: Ensure you understand your state's laws regarding wholesaling and contract assignments. If assigning contracts isn’t an option in your state there are other options. We can explore those in future issues of The Wholesale Hustle.

Your 30-Day Action Plan

Week 1: Study your local market, attend REIA meetings, and start building your buyer network.

Week 2: Set up your marketing systems (website, business cards, direct mail campaigns).

Week 3: Begin lead generation activities and start analyzing potential deals.

Week 4: Make your first offers and continue networking with buyers and sellers.

Final Thoughts

Real estate wholesaling can be incredibly rewarding, but success requires consistent effort, continuous learning, and persistence through inevitable challenges. Focus on building relationships, providing value to both sellers and buyers, and maintaining your reputation for honest, professional dealings.

Remember: your first deal is often the hardest, but each subsequent deal becomes easier as you refine your systems and expand your network. Stay consistent, stay ethical, and stay focused on solving problems for motivated sellers while providing profitable opportunities for investors.

The wholesale game rewards those who take action. Start building your foundation today, and you could be closing your first deal within 30-60 days.

SIDEBAR: Deal Math 📊

Breaking Down the Numbers (Fictitious example for illustration)

Here's how the math works on a typical wholesale deal:

• Property ARV: $140,000

• 70% Rule Calculation: $140,000 × 0.70 = $98,000

• Estimated Repairs: $25,000

• Maximum Investor Pay: $98,000 - $25,000 = $73,000

• Your Wholesale Fee: $10,000

• Your Offer to Seller: $73,000 - $10,000 = $63,000

The Result: You contract at $63,000, assign to investor at $73,000, and earn $10,000.

Key Insight: Always work backwards from what investors will pay. Your profit comes from the spread between what you can buy it for and what investors will pay.

Tools of the Trade 🔧

Apps Every New Wholesaler Needs

1. Offer Calculator - Make quick offer calculations to speed up the process.

2. Zillow/Redfin - Comparable sales research

3. Maps Websites - Google Earth, Google Maps

4. CRM Options - Choose from Podio, REI Reply, Salesforce Essentials, or HubSpot (free tier)

5. DocuSign - Electronic contract signatures

Pro Tip: Start with free versions of these tools. Upgrade to paid plans only after closing your first few deals.

Market Pulse 📈

Hot Wholesale Markets This Quarter

Based on recent investor activity and inventory levels:

🔥 Hottest: Atlanta, Jacksonville, Memphis 📈 Rising: Indianapolis, Kansas City, Oklahoma City ⚠️ Cooling: Austin, Phoenix, Boise

Remember: Every market has opportunities. Focus on mastering your local area rather than chasing trends in other cities. In the world of wholesaling a cooling market can signal more opportunities to find motivated sellers.

This issue should provide a springboard for getting started in wholesaling.

It’s a super profitable real estate technique that can help you launch into any other aspect of real estate you desire.

Until next time :)