most distressed contracts say the contract can't be assigned. How can I sell a contract to another investor? Is this how it works?
Get another contract. :)
That is because the sellers do not want to have their properties tied up by "buyers" who have no means and no intention of closing; merely trying to flip the contract and make a middleman's profit.
Almost all sophisticated sellers will take steps to eliminate "wholesalers", either through research, proof of funds or clauses negating assignment. There are ways around these which sometimes work.
That is why wholesaling (without actually taking ownership of the property) is usually done with unsophisticated sellers.
This is not to say that wholesalers don't provide a needed service; for instance on low priced homes which Realtors don't want to deal with, wholesalers may be the seller's only option for knowledgable representation.
thanks for clarifying a bit don