Wholesale Real Estate Deals Explained (and How Buyers Get Access)

Wholesale Real Estate Deals Explained (and How Buyers Get Access)

Wholesale Real Estate Deals Explained (and How Buyers Get Access)

Wholesale real estate deals give investors access to off-market properties without doing the sourcing work themselves.

Wholesalers find motivated sellers, negotiate contracts, and assign those contracts to buyers for a fee. For buyers, it's a shortcut to deal flow. For wholesalers, it's a business model that doesn't require capital or credit.

But here's the reality after working with hundreds of wholesalers over 8 years: just because someone's a wholesaler doesn't mean they have any idea how to find good deals. Nor does it mean they know how to recognize if it's a good deal.

At The von Group, we sort through hundreds of properties from other wholesalers just to find the one good deal that they actually have.

This guide explains how wholesaling works, where to find reputable wholesalers, and how to evaluate deals before you commit—so you don't waste time on garbage that looks good on paper.

What Is Wholesale Real Estate?

Wholesaling is a three-party transaction:

The seller wants to sell quickly, often below market value.

The wholesaler negotiates a purchase contract with the seller, then assigns that contract to an investor (the buyer) for a fee.

The buyer (you) takes over the contract, pays the seller directly, and pays the wholesaler an assignment fee at closing.

The wholesaler never takes ownership of the property. They're the middleman connecting motivated sellers with investors.

Assignment fees typically range from $5,000 to $15,000+, depending on the deal size and market. In competitive markets or high-value properties, fees can climb to $20,000 or more.

How Wholesalers Find Properties

Wholesalers use the same strategies individual investors use to find off-market deals:

Direct mail campaigns. Postcards or letters sent to distressed property owners—vacant homes, code violations, tax delinquencies, inherited properties.

Cold calling. Using skip tracing to find phone numbers and call property owners directly.

Driving for dollars. Physically driving neighborhoods to find properties with visible distress.

Probate and estate sales. Reaching heirs who inherited properties they want to liquidate.

Foreclosure lists. Contacting owners in pre-foreclosure before auction.

Networking. Building relationships with agents, contractors, and other investors who refer deals.

The best wholesalers are full-time marketers. They spend thousands per month on outreach and have systems to track leads and follow up relentlessly.

But here's what most buyers don't realize: volume doesn't equal quality.

The Problem with Most Wholesalers

After 8 years and 150+ deals, I can tell you this: most wholesalers don't actually understand fix-and-flip numbers.

They've never done a renovation. They don't know what finishes sell in specific neighborhoods. They can't accurately estimate repair costs. They don't understand that a comp 0.2 miles away could be selling for $200k more solely because of the street it's on.

They run basic formulas, slap on an assignment fee, and blast the deal to their buyer list hoping someone bites.

At The von Group, about 10% of our deals come from wholesalers. But we have to sort through hundreds of their properties to find one that actually has solid numbers.

Someone like us—we're real investors ourselves. We flip houses, buy rentals, renovate properties, and sell them. We really know everything about the process of doing a fix and flip, and that knowledge separates us substantially from the competition.

When you work with a wholesaler who isn't an actual investor, you're trusting someone who's never walked the path to tell you how profitable the journey will be.

That's a problem.

Why Sellers Work with Wholesalers

If wholesalers offer below-market prices, why do sellers accept?

Three reasons: speed, simplicity, and certainty.

Speed. Wholesalers close fast—often 7 to 14 days. Sellers avoid months of showings, open houses, and waiting for financing approvals.

Simplicity. No repairs, no staging, no cleaning. Wholesalers buy as-is.

Certainty. Cash or hard money offers close without financing contingencies or appraisal issues.

For distressed sellers facing foreclosure, relocation, divorce, probate, or financial hardship, these benefits outweigh getting top dollar.

Why Investors Buy from Wholesalers

Wholesaling works for buyers who value time over maximum profit.

You skip sourcing. No direct mail campaigns, no cold calling, no driving for dollars. The wholesaler does that work.

You get potential deals delivered. Good wholesalers filter out tire-kickers and bring properties with built-in equity.

You access motivated sellers. Wholesalers find sellers you'd never reach on your own.

You can scale faster. Instead of spending 20 hours per week sourcing, you focus on analyzing deals and closing.

The tradeoff? You pay a fee, so your margins are thinner than direct-to-seller deals.

For investors who want consistent deal flow without building their own sourcing systems, wholesaling can make sense—if you know how to separate good wholesalers from bad ones.

The Good, the Bad, and the Ugly of Wholesaling

Wholesaling gets mixed reviews for good reason.

H3: The Good

Legitimate wholesalers bring real value. They spend money and time finding motivated sellers, negotiating contracts, and managing logistics. Their fee compensates them for that work.

You get access to properties you'd never find. Good wholesalers have marketing systems that produce consistent off-market inventory.

Deals move fast. Wholesalers know investors want speed. Properties are priced to sell quickly, and closings happen in 7-14 days.

The Bad

Many wholesalers inflate prices. They pad their fee into the purchase price instead of disclosing it separately. You think you're getting a $100,000 property for $120,000, but the wholesaler's fee is $20,000, not $5,000.

Many misrepresent property condition. They exaggerate ARV, underestimate repairs, or hide major issues to make deals look better than they are.

Many blast deals to hundreds of buyers. You're competing with 50 other investors for the same property. First to respond wins, but you have no time for proper due diligence.

The Ugly

Unethical wholesalers exist. They tie up properties they can't sell, mislead sellers, or ghost buyers after collecting deposits.

Some markets are flooded with bad wholesalers. Low barriers to entry mean anyone can claim to be a wholesaler. Many have no idea what they're doing.

The key is finding reputable wholesalers and running your own due diligence on every deal.

How to Find Reputable Wholesalers

Good wholesalers are out there. You just need to know where to look.

Join local real estate investment groups (REIAs). Wholesalers attend these meetings to network with buyers. Introduce yourself and ask to be added to their buyer lists. Atlanta REIA and Georgia REIA are solid starting points locally.

Connect on BiggerPockets. Search for wholesalers in your market and message them. Ask about their sourcing methods and typical deal volume.

Search Facebook groups. Many markets have investor-focused groups where wholesalers post deals.

Ask other investors. Find investors who are actively buying and ask which wholesalers they trust.

Work with buyer's agents who know wholesalers. Investor-focused agents often have relationships with wholesalers and can refer you. Working with an agent to find off-market deals covers how to find the right agent.

Once you're on a wholesaler's buyer list, you'll start receiving deal emails or texts. Respond fast to the good ones.

How to Evaluate Wholesale Deals

Just because a wholesaler sends you a deal doesn't mean it's a good deal.

Run your own analysis on every property:

Step 1—Verify the Numbers

Wholesalers often include their own analysis—ARV, repair estimates, and profit projections. Don't trust these blindly.

Pull your own comps. Search sold properties in the last 3-6 months within 0.5 miles. Match square footage, bed/bath count, and condition. Your ARV is the average of the best 3-5 comps.

Get your own repair estimate. Visit the property with a contractor if possible. Note major repairs: foundation, roof, HVAC, plumbing, electrical. Budget 10-15% extra for surprises.

Run a complete profit analysis. Start with ARV and work backward. Subtract selling costs (commissions, staging, closing), rehab, holding costs, acquisition costs, and purchase price. What's left is net profit. Calculate cash-on-cash return to determine if it meets your criteria.

After 8 years and over 10,000 underwriting experiences, I can analyze a deal in 15-20 minutes. When you start out, expect a full underwrite to take 60+ minutes.

If the wholesaler's asking price exceeds what your numbers support, pass or negotiate.

Step 2—Inspect the Property

Wholesalers typically allow showings before you commit. Take full advantage.

Visit the property and check:

Foundation. Cracks, settling, water intrusion.

Roof. Age, leaks, missing shingles.

HVAC. Does it work? How old?

Plumbing. Leaks, water pressure, drain function.

Electrical. Panel condition, outlets, wiring type.

Structural. Sagging floors, cracked walls, signs of major damage.

Bring a contractor if you're not experienced with construction. Their eye catches things you'll miss.

What to look for when buying a fixer upper covers inspection red flags in detail.

Step 3—Verify Title

When buying from wholesalers (not The von Group), always check the title before signing an assignment agreement.

Make sure:

The seller actually owns the property. Verify ownership through county records.

There are no liens or judgments. These complicate or prevent closing.

Back taxes are disclosed. If the seller owes taxes, those become your problem at closing unless negotiated.

The wholesaler has a valid contract. Ask to see the purchase agreement between the wholesaler and seller.

Reputable wholesalers provide title information upfront. If they don't, ask for it.

When you buy from The von Group, you have title contingency protection. Our closing attorney handles title search and clears issues, and we strongly recommend title insurance.

Step 4—Understand the Assignment Agreement

The assignment agreement transfers the purchase contract from the wholesaler to you.

Read it carefully and confirm:

The purchase price. This is what you'll pay the seller at closing.

The assignment fee. This is what you'll pay the wholesaler at closing (separate from purchase price).

Closing timeline. Make sure you can meet the deadline.

Contingencies. Most assignment agreements have few to no contingencies. You're committing to close as-is.

If anything is unclear, ask questions before signing.

Red Flags to Watch For

Not every wholesaler is trustworthy. Watch for these warning signs:

Inflated ARV or low repair estimates. If their numbers seem too good, they probably are. Always verify independently.

Pressure to decide immediately. Good deals move fast, but legitimate wholesalers give you time to inspect and verify.

Refusal to show the property. If they won't let you see it before committing, walk away.

No purchase agreement with the seller. If the wholesaler doesn't actually have the property under contract, they're wasting your time.

Excessive assignment fees. Fees above $15,000 should come with exceptional value. Question why it's priced so high.

Vague or evasive answers. If they dodge questions about repairs, title, or seller motivation, move on.

Trust your instincts. If something feels off, pass. There's always another deal.

How to Build Wholesaler Relationships

The best deals go to buyers wholesalers trust.

Here's how to become that buyer:

Respond fast. When a wholesaler sends a deal, reply within an hour if you're interested. Speed shows you're serious.

Close when you commit. If you sign an assignment agreement, close on time. Don't back out without valid reasons.

Provide feedback. If you pass on a deal, tell them why. This helps them understand your criteria and send better matches.

Refer other buyers. If a deal doesn't fit you but might work for someone else, connect the wholesaler with another investor. Reciprocity builds relationships.

Stay in touch. Check in monthly even if you're not actively buying. Wholesalers remember the buyers who stay engaged.

The more reliable you are, the more deals you'll see.

Wholesale Deals vs. Direct Sourcing

Wholesaling isn't the only way to find investment properties. How does it compare to sourcing directly?

Wholesale deals:

• Pros: Fast access, no sourcing work, vetted sellers

• Cons: Pay a fee, thinner margins, some competition

Direct sourcing:

• Pros: Maximum profit, no middleman fees, full control

• Cons: Time-intensive, requires marketing budget, slower pipeline

Most successful investors use both. Wholesalers provide consistent baseline deal flow while direct sourcing adds high-margin deals.

How to find investment properties covers multiple sourcing channels in detail.

How The von Group Works with Buyers

The von Group operates differently than traditional wholesalers.

We don't blast deals to hundreds of buyers. We maintain a curated buyer list and offer properties on a first-come, first-served basis.

Here's how it works:

We source off-market properties through direct seller relationships and proprietary marketing. We reach out to 2,500 agents per day and underwrite 30-40 properties daily to find the rare deals with real numbers.

We vet every property to ensure it meets our standards for profitability. After 8 years and over 10,000 underwriting experiences, we know what works.

We send you property details with a complete estimated breakdown showing projected ARV, all costs, and estimated net profit.

You align with your agent on valuations before visiting the property.

You schedule a visit and complete all due diligence upfront—bring contractors, inspectors, or anyone else you need.

You have title contingency protection. Our closing attorney handles title search and clears issues. We strongly recommend title insurance.

You submit a signed contract and $5,000+ deposit (non-refundable, cashier's check or wire) if the numbers work.

We close on time. Firm closing dates unless title issues arise. Properties sold as-is for cash or hard money only.

Doo all of your Due Diligence / Inspections before signing the purchase and sale. No negotiations. Transparent pricing.

And we Guarantee you will make at least $20,000 on any flip you buy from us... if you don't, then we'll list the resale for just $1,000 + 0.12% commission.

The difference? We're actual investors ourselves. We flip houses, buy rentals, renovate properties, and sell them. We know what finishes are in high demand in specific areas. We know the streets and neighborhoods intimately.

Most wholesalers don't have that knowledge. We do.

Off-market fixer upper homes explains more about how off-market deals work.

Common Questions About Wholesale Deals

Do I need cash to buy wholesale deals?

Not necessarily. Cash is fastest, but hard money loans work too. Most wholesalers require proof of funds or lender pre-approval before assigning contracts. Hard money loans for fixer uppers covers financing options.

Can I negotiate the assignment fee?

Sometimes. If the wholesaler has room in their margin, they may negotiate. But most fees are fixed.

What if I find a problem after signing?

Assignment agreements are typically as-is with no contingencies. That's why due diligence before signing is critical.

How do I know if the deal is good?

Run your own numbers. Pull comps, estimate repairs, calculate complete profit analysis. If the math works, the deal works.

The Bottom Line on Wholesale Deals

Wholesale real estate deals can be a valuable source of investment properties—if you know how to separate good wholesalers from bad ones and run proper due diligence.

But remember: just because someone wholesales houses doesn't mean they understand fix-and-flip numbers or have actually done renovations themselves.

At The von Group, we sort through hundreds of wholesale deals to find the one with solid numbers. We're real investors who flip houses ourselves, and that knowledge makes all the difference when evaluating properties.

Whether you work with wholesalers or partner with an investment brokerage like ours, always run your own analysis and never skip due diligence.

Get Access to Vetted Off-Market Deals

The von Group provides off-market properties without the hassle of traditional wholesaling. We've closed 150+ deals since 2024 and continue growing our inventory.

First-come, first-served pricing. No bidding wars. Fast closings.

Get off-market deals here.

Need financing? Check our financing resources to connect with hard money lenders.