Newbie from London! Assignment Contract Wholesaling?

Question

I have decided to step into the world of property, curious to see what people here think of contract wholesaling.

My main questions are:

- Is it difficult to find investors after negotiating a decent assignment deal?

- What are the risks of being stuck with a contract?

- How or where do I find investors?

I have a background working with banks, hedge funds and large infrastructure developers, and have been told my sales and negotiation skills could be leveraged in real estate, particularly in wholesaling. Also if anyone has info on this in the UK, please reach out.

Mike Fingleton · Answer

Hey Qusai,

I see you’re dipping your toes into the world of assignment contract wholesaling, and I’ve got to admit, watching someone from a background in finance tackle this is like seeing a chef turn leftover veggies into a Michelin-worthy salad. When I first started working with new wholesalers years ago in the Phoenix area, I remember meeting a buddy who’d just locked up a deal on a fourplex near Grand Avenue. He had the contract lined up, ready to assign, but he was freaking out that no one would bite. Funny enough, after making a few calls to my network in Scottsdale, plus tapping into a couple of connections I’d developed through some late-night investor meetups, we found a buyer quicker than he could polish off his morning espresso. It was a little wild, but it proved something: if the numbers make sense, investors show up.

Now, you’re in London, which has its own flavor, but the core idea isn’t too different. Investors crave deals that pencil out, and if you’ve got something that stands out... they’ll sniff it out. The real trick is making sure you’ve got a handle on who’s active in your target area. Over here in the U.S., if I’m dealing with someone in, say, Chicago or Austin, I know precisely which local operators are closing quickly and which boutique lenders are staying nimble. By the way, from what I read in the Wall Street Journal, there’s a growing number of niche investors cropping up who love grabbing assignments that fly under the mainstream radar, especially if you’re bringing something fresh to the table like a distressed duplex they can reposition, or a small portfolio of row homes they can turn into long-term rentals. In Phoenix, I might call up a friend who invests in mixed-use properties south of Roosevelt Row, and that friend might know a local title rep who’s been working with out-of-state buyers who like to pull the trigger fast. In Chicago or San Antonio, it’s a similar hustle... you build the right relationships with smaller property managers who know local investor groups, and suddenly you’re the guy who can feed them deals they never thought they’d find on BiggerPockets alone.

As for the fear of getting stuck with a contract, it happens less often when you’ve done your homework on the numbers and aren’t overselling some mediocre deal. I’ve seen folks panic and act like they’re about to be stuck holding a ticking time bomb, but if you structure the contract properly, give yourself a decent inspection or feasibility period, and understand local investor demand, you’ll rarely end up empty-handed. You might fumble occasionally, sure, but that’s kind of like investing’s rite of passage. If you’re nervous, dig into local investor clubs.. from what I’ve heard, even in London you’ll find groups meeting over coffee, talking shop, and sharing leads. Connect with a few players who know your submarkets like the back of their hand, and suddenly you’re not the lone wolf trying to move product. You’re the insider who can ring someone up, say you’ve got a contract on a property ripe for a cosmetic upgrade, and watch them perk up.

I’d say give it a whirl, see how it feels, and don’t hesitate to tweak your approach as you learn. Sure, not every deal will feel like a slam dunk, adn sometimes you’ll wonder if you’ve bitten off more than you can chew, but that’s exactly how you grow as an investor. Plus, if you ever find yourself thinking about placing deals in markets I know a thing or two about—like Phoenix (my backyard) or Austin—I’ve got connections that could give you a running start. Don’t be surprised if you find yourself downing a few extra coffees while sifting through properties, but hey, that’s part of the journey when you’re aiming for that next-level investment portfolio, right? Just keep your eye on the numbers, be patient, and, if the path feels a bit winding at times, remember that most of us have been right there the ones who kept at it ended up with the sweetest returns.

Take care, Pat & JasperTurning investment visions into REALITY in Phoenix, AZ - Ranked #1 for residential real estate growth and opportunity by PwC

Qusai Agha · Answer

Hey Pat,

Thank you so much for your detailed reply, the tips and  pieces of advice you gave really resonated. Your point about people from finance and veggies really cracked me up!!

But on a serious note, I do think wholesaling is my cup of tea and something I will definitely be giving a go. As of now my network of connections with agents and investors is very small, and I am looking to expand my opportunities as much as possible so I do need a bit of work when it comes to this aspect.

I was also wondering, do you think it is worth considering contract wholesaling in the US and not just London? I mean despite my British accent, do you think this could perhaps be better? Considering the more lenient US laws compared to the UK in contracting.

Again, thank you so much for your reply, perhaps we can connect and see out opportunities in the future!

Regards,

Qusai