Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 165 posts · 58 votes
And now for a reality check about wholesaling.
Most experienced wholesalers spend about $2200 per closed deal, and average an occasional deal if at all. Most wholesalers have a life cycle of about 6 months before they move onto something else. Wholesaling doesn't allow you to represent the seller but being a licensed agent does. (I am not a licensed agent so don't interpret that to mean I'm endorsing agents)
Many wholesalers have written about buyers that went around them directly to the seller, leaving the wholesaler with no commission at all and nowhere to turn to for relief. The best bet is to talk to an attorney in the state you plan to wholesale, get versed on the latest local laws, have a solid contract drawn up to use and then start meeting buyers, typically flippers and find out what they are buying. You need to learn comps and just work the ones that fit your buyers. A lot of new wholesalers are simply “daisy chainers” that are trying to sell the property someone else is selling, but for more money. That doesn’t work.
A successful wholesaler knows how to uniquely source a property, get it under contract for a profitable amount using comps, assign to a bona fide buyer and keep everyone happy and honest through closing.
Agree with most of this. From the agent side, what I see most is sellers who signed with a wholesaler at a price 20 to 30 percent under what the house would have netted them on the open market, even after paying a commission, and nobody showed them that math. Some sellers really do want speed and an as is sale and that's fine, they just should know the gap.
Here in New York both sides have attorneys on the contract, so a lot of assignment deals get picked apart before they ever close. Anyone getting into it should do exactly what you said and talk to a local attorney first.
Agree with most of this. From the agent side, what I see most is sellers who signed with a wholesaler at a price 20 to 30 percent under what the house would have netted them on the open market, even after paying a commission, and nobody showed them that math. Some sellers really do want speed and an as is sale and that's fine, they just should know the gap.
Here in New York both sides have attorneys on the contract, so a lot of assignment deals get picked apart before they ever close. Anyone getting into it should do exactly what you said and talk to a local attorney first.
Fair reality check, John. From the buyer's-agent side, the piece I'd add is about your exit: wholesaling is a buying strategy, but it only works if the numbers hold for the end buyer. Every fee stacked into an assignment — including daisy-chained ones — comes straight out of the profit of whoever closes on the property.
So my advice for beginners: learn to run sold comps yourself before you ever commit to an assignment fee. If the wholesaler's math is solid, they'll walk you through it gladly, because good wholesalers want repeat buyers. If the numbers are vague or the property keeps getting passed from one wholesaler to another with each adding a fee, that's usually your sign to walk away. There will always be another deal.
One reason it doesn't work for most people that rarely gets mentioned: almost everyone starts with the same purchased lists, so the same owners get hit by dozens of mailers and texts in the same month. New wholesalers spend their budget on records that are stale, already sold or completely burned out, and they quit before they figure out that the list was the problem. The ones who last usually build their own pipeline from public records and driving for dollars, and they follow up for months. That's slower, but it's what actually separates them from the six-month crowd.
I think what causes most to fail is that their expectations are woefully inadequate. The amount of skills and systems you need to master are substantial. It's not just being able to find deals or a matter of effort. It's extremely difficult to do well even with full time effort, let alone part time. And while you're getting started you may very well operate at a loss for quite a while before you figure things out and get them stabilized.
It's also incredibly predatory. Everyone wants to sell you their systems, mentorship, lists and services. Most of it is garbage or things you could get for free with the help of your favorite AI service.
I cannot overemphasize that successful wholesaling is a business, much like successfully owning/managing rental properties. Treating it like anything else including a job is a mistake. So when people get started and discover how much they don't know or how much work it will be beyond just driving around knocking on doors, they get discouraged and realize that the ROI on their time will be bigger doing almost anything else in the short term.
Agree with a lot of this. Wholesaling isn't easy and it definitely isn't get rich quick. Most people quit because they treat it like a side hustle instead of a real business.
The ones still closing deals every month are doing the basics consistently. Daily outreach through texting and calling, real conversations with sellers, consistent follow up, and knowing their buyers. Most people who say it doesn't work aren't putting in the daily reps.
You're also right about daisy chaining. Finding off market deals directly from sellers is the whole job. If you're just reselling someone else's listing, you're not adding value to anyone.
On the buyer side, a lot of that comes down to doing things the right way. Make sure your purchase contract is assignable, use a separate assignment agreement with the end buyer, and close with a title company or attorney who has done wholesale deals before. Be upfront with your seller that you may assign or bring in a partner. Transparency keeps everyone honest and the deal moving.
It's more competitive than ever, but the business model still works if you build it like a business. Happy to share more on how we run ours, shoot me a DM.