Kelton, the wholesalers who send me the most deals are the ones I answer fast and close on. Here's what works from the buyer's side. First, know your numbers cold before you call — I buy single-family under $100K in Memphis, all-in under the 1% rule, ARV $180K-$265K, so when a wholesaler calls I can say yes or no in five minutes. Second, don't shop the fee — shop the spread. A $5K fee on a real deal beats a $2K fee on a house that doesn't pencil. Third, check everything yourself: ARV, rehab, rent. I never put earnest money down, so if the numbers don't hold up I walk and nobody's out anything. And follow up after you close — the wholesaler who got paid is the one who calls you first next time.
I've been wholesaling full time since May of 2023 when I got my first deal and quit my $18/hr call center job at the time.
I've learned a couple things along the way, so here are some tips to help new wholesalers.
Tip for new wholesalers:
If you have a deal that feels IMPOSSIOBLE to SELL, it could be because it's NOT a deal at all.
It's not just about getting any random house under contract.
We need to make sure that the property makes sense, the location makes sense and that THE NUMBERS make sense.
@Kelton C., I agree! Getting a property under contract doesn't automatically make it a good deal. The numbers and location have to make sense, but I'd also look at whether there are any issues that could make it difficult for the buyer to close.
I'm a real estate attorney and broker based in Maryland, and I've worked with investors on property transactions and contracts. For example, a property might look like a great opportunity financially, but an unresolved lien or title issue can complicate the entire transaction. That's why I think looking into those details early is just as important as running the numbers.
I appreciate you sharing this, @Kelton C.! It's a good reminder for anyone getting started in wholesaling. Happy to stay connected!