Contract Flipping Blueprint: How I Close Deals Without Leaving My Home

by |

The aim for most entrepreneurs is to use leverage to maximize profits while working on projects that give them purpose and passion. As a wholesaler, this is accomplished by leveraging others’ time, talents, and resources to accomplish your goal of closing more transactions.

There’s nothing more rewarding than closing a transaction without leaving the comfort of your home. This may seem unrealistic to some, but by utilizing leverage, the end result could mean another satisfied client and another closed transaction for you. This is exactly what flipping contracts can do for you.

How to Purchase Real Estate With No (or Low) Money!

One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.

Click Here to Download

The Strategy

I’ve recently learned working hard for 100 percent of the commission or wholesale fee is not always the best result. Without a team and systems, you can easily find yourself running around your city day after day, week and week, and even month after month to close a deal. I recently stumbled upon flipping contracts because of my inability to make it to an appointment because of my schedule. I’m currently working to build a team, but until that time, I’ve been using this strategy to close deals without leaving my house. I stumbled upon this, and now it’s becoming a common occurrence in my business.

Related: The #1 Thing You Need to Automate Your Wholesaling Business

The last few deals I’ve done, I had to be extremely resourceful in bringing them to close. This is a result of years of networking and years of talking with sellers on the phone, and I’m so thankful for starting out birddogging to build that solid foundation.

Flipping contracts takes a serious level of skill that need to be developed over time. As stated, this was not something I learned to do immediately, and the first few times, I failed miserably and considered never trying it again. Thank God for persistence and tenacity.

In this world of internet and telephone scams, people have a natural inclination to be defensive — and rightfully so. However, if you want to be successful at flipping contracts, you will have to work hard to break down that barrier and fight through other objections to effectively use this strategy.


The Seller Conversation (Positioning)

The initial conversation with the seller is similar to your normal conversation when wholesaling; however, the rapport building process is a lot longer and the trust level has to be a lot higher. So this is normally not done in 2-3 conversations with a seller. On average, I speak with the seller 10-12 times before we getting to the nuts and bolts of the contract terms.

This is a very slow play, but it works. I call it the “pen pal approach” — you do not know each other, but during these conversations, you are like pen pals writing and getting to know one another. This does not work with all sellers. You have to be able to evaluate their personalities because some people are bulls, and they only want to know the price you’ll pay and move on. This is ideal for out-of-state absentee owners or in-state absentee owners who live a slight distance from the rental.

Secondly, after rapport is built and the trust level is at a 6 or 7 (on a 10 point scale), then you can begin discussing the dynamics of the tenant or whoever is residing in the property. This is done because eventually you are going to facilitate access of the property with them. You will need the owner to allow you to talk with the tenant to gain entry. This entry is not for yourself but for your buyers.

I’m sure you’re thinking, “Well, what about the pictures of the property?” Great question. If your numbers are rock solid and you negotiated a great deal, you will have your first interested buyer to gather those pictures for you. I’ll get to that next.

At this point, you and the seller have agreed upon a price already, so that is firmly established. This is without you viewing the house. Yes, without you viewing the house yet.

The Buyer’s Responsibility

So now you have gained the trust of the seller and the trust of the tenant, and you have solidified the contract with the seller. The next step is critical. You will contact one of your premier buyers and inform them you have a deal that will be exclusively for them. Then let them know that you do not have the pictures yet and that they can go and view the property and take the photos for you. Once the buyer agrees, then you can inform the seller and the tenant one of your representatives will attend the appointment on your behalf to finally lock everything down.

Related: Contract Assignment 101: The Beginner’s Guide to Wholesaling Real Estate

Remember, all of this is done from your house. Sweet, right?


The Renegotiation

In the event the property is in worse condition than your seller explained, then you renegotiate the contract below the price your buyer is willing to pay, then you assign the deal — i.e. flip the contract — and finally close the deal. Many landlords are willing to renegotiate the deal if you present it right. Normally, I explain to the seller the condition the property is in and that willing to provide them with pictures confirming what the buyer saw. Especially in cases with landlords who live a great distance from the property, they are often simply eager to be done with the situation.

For the sake of time, I did not mention how does the seller gets your contract. This is done by electronic (DocuSign) means if they are tech savvy or overnight mail with a return addressed envelope enclosed if they prefer traditional means.


Here are a few takeaways to remember:

  1. You will have to give up a portion of your wholesale fee/commission.
  2. You will save time by leveraging the time, talents, and resources of others.
  3. You will need to focus on developing your phone etiquette.
  4. You will need to be able to understand and evaluate the seller over the phone.
  5. You will need to have your premier buyers in place.
  6. You will need to be extremely patient and resilient.


Flipping a contract takes a level of communication skills that many people are not willing to develop. I have spoken with thousands of sellers, and those conversations were the development ground for what I do now. Work on your phone etiquette and rapport building skills, and you can add this strategy to your business.

Do you see this as a successful strategy? Do you thing you can evaluate a seller over the phone? Can you image how much more productive you can be with this strategy?

I’d like to hear from you!

About Author

Marcus Maloney

Marcus Maloney G+ is the Executive Officer of Equity Realty & Investments as well as 3rd Generation Management & Holding LLC, both are family owned and operated real estate investment firms. The firms' goal is to provide affordable solutions in real estate while providing exceptional opportunities for community redevelopment for the residents of Phoenix, Arizona and Chicago, Illinois. You can follow Marcus on Twitter


  1. Randy Phillips

    Flipping houses from home sounds like Serious BS, but the crazy thing is, I’ve done it many many times, and it wasn’t half as hard as Marcus says it is. I recruit bird dogs in other towns and states using Craig’s List. I have them take photos and get sellers contact info. They also run the ARV & comps. I simply call seller or mail a post card and negotiate a price and email my contract. Once signed I and the bird dog begin running creative ads in nearby cities.
    Once a buyer has looked over the property and is ready to buy I simply send him my assignment contract to sign and we start escrow.
    I just flipped a house in Salisbury Maryland and I’m in California. On the out of State deals I split the assignment fee 50/50 with my bird dogs because they are doing 90% of the work.
    I am actually shocked how easy it is. I also do this locally and often never see the houses and I pay my bird dogs a flat fee of $2,000, I paid out 10 Grand in bird dog fees this month so you can see how they can be seriously motivated.
    I’ve only been doing this a few years 3 1/2, I made 28K last month and $40,000 this month, who the hell wud believe it? So I photograph all my checks and also take a photo of each bird dog holding the 2 Grand in cash.
    I’m living it.
    Let’s make some Money….. Rando

    • Marcus Maloney


      Thank you for the valuable imput and providing another viewpoint. There is easier ways to flip contracts after one learn the basics, this post was to inform the novist about the process and after the foundation is learned they can expound and be creative in the ways that you have.

      It seems as though you have a great process going and I need to speak with you to gleen some of the information that you have. I’m a big advocate for learning and it sounds as though you may be able to help me ramping doing more deals like this.

      Thanks again for the imput and Ill reach out to you

  2. Randy Phillips

    Hey Marcus, I sometimes paint to rosy of a picture. Nobody told me how difficult it can sometimes be.
    So, while the process of wholesaling is really simple, I usually fail to mention the amount of books I’ve read on the process & on training my mind, I had to do a complete attitude change from being a negative loner to a more positive friendly person. Also I had to learn negotiating skills and salesmanship techniques which mostly boil down to listening skills.
    Also when I started to really listen to my sellers and letting them tell their stories and encouraging them to spill their guts that was the game changer. Several times the sellers wud actually come to tears explaining how the property got so distressed and the problems they had.
    I also usually fail to mention the bad times, the deals that fell apart right before closing and at times when I desperately needed money. Going 4-5 months with deals going south and dealing with dishonest buyers and sellers can really test you. I have experienced the lowest of lows and the highest of highs, now I’ve learned to regulate the emotions somewhat.
    Also spending thousands of dollars on direct mail and not getting a deal and then to continue pouring money into these campaigns is a challenge. The great thing is, it don’t take many deals to recoup your loss and pad that bank account. My most important advice is to take action and never give up.
    Would I do it all over again? Hell yes. I used to make 30K a year doing construction after expenses, now to sit in my home office working 5-6 hours a week is a dream job.
    I feel sorry for all the people working hourly jobs, that is true hell.
    Let’s make some Money….. Rando

    • Marcus Maloney


      You hit the nail on the head with those remarks….People look at the end product but look at the process, this was something I struggled with. I would see people post their checks on fb or hear podcast about the money people were making and I would constantly ask myself why am not successful at this. We it was just a matter of time. I tell people the laws of nature will challenge you to see if you will really fight for your dream. Most people give up but there is a select few that will push through adversity and break down every barrier.

      I remember not getting a deal for 7 months when I first started and when I did find something I only made $2200 but that $2200 showed me the possiblities. Everyone want things fast its a microwave society but those that are willing to stand against all the forces that are against you will succeed its a matter of time. It’s stories like mine and yours that need to be told to the newbies and not the get rich quick in 30 days market garbage the gurus pitch.

      Its amazing how we can work 5-6 hours a week and make more than we made in a year. My struggle with that was I had so much time I thought I wasn’t doing enough. Man thanks for the words of encouragement for those struggling and for those looking to take it to the next level. I’m going to give you a call.

      “Enjoying the Journey”

    • Curt Smith

      Congrats Randy!!! I read between your lines that it’s a mater of just doing it. Struggle and figure it out but do it.

      My suggestion is to take 1/3 of your monthly take and put into buying rentals. You/ll need that passive income eventually as you burn out or something changes in the market and your success drops off.

      Wholesaling after all is just a j-o-b. Once you stop the income stops. But great to hear you’re kicking it good!!! Thanks for giving us a picture of how to do it remotely.

  3. Kimberly Farrally

    I’m glad to have read this. I recently asked a question on the forums about turnaround times on offers. I see so many wholesalers offering a “zero obligation fair cash offer within 24 hours.” I didn’t know how realistic that was when I was setting up our website. In my head, I’m thinking within 24 hours I would have had to contact the seller, make an appointment with the seller to go see the house, take pictures and calculate my numbers. Didn’t seem feasible to me! Then in my post, someone mentioned making the offer over the phone first, then changing your offer once you’ve seen the property…but then others said this was bad practice and to not make the offer until you see the property because it would “look bad” to change up your deal and create a bad reputation if you have to change your deals all the time. So, then I am still confused if whether or not I should put “offer within 24 hours” on my site…but if I don’t then how do I compete with others?

    • Marcus Maloney


      Great question, I always preface the conversation with the seller by informing them I can provide them with an offer over the phone based on the information they provide me regarding the condition. I also inform them that these numbers may change slightly depending upon what we find. Our initial offer is never a hard number but a range for example 80-100k, based on comps in the area you will be able to get this range. If that range is acceptable for the seller then we will go and view the property. So we are providing an offer within 24 hours, but in order to nail down our offer and tell the seller exactly what we are willing to pay we need to view the property via in person or pics.

      Most sellers and buyers are accommodating but its important to have that conversation first. What some investors do is offer high to lock in the contract and then walk the seller down to the price they need to be at. I am NOT an advocate of that strategy because it is basically a bait and switch. The only time we change our hard offer after seeing the property is if we find something critcal that would drastically change the rehab numbers.

      I hope this help, glad your taking action.

      “Enjoying the Journey”

      • Lenzy Ruffin

        Thank you for that tip on offering a range during the initial call. I always ask sellers if they have a price in mind. Most of the people I talk to do have a price in mind and are forthright about it (it’s usually based on what they owe on the property). Often, however, sellers will tell me that they don’t know what they want and I haven’t had an appropriate way to handle that, so I’ve wasted a lot of time going to inspect houses and making offers only for the seller to reject it saying that “the house down the street sold for X…”

        So they had a price in mind that was nowhere near what I would be able to pay, but they wouldn’t be up front about it, so they wasted my time and theirs. The strategy you just shared will prevent me from wasting time like that in the future. Thank you.

    • Marcus Maloney


      Yes you have to be more efficient, find the task that someone can do and delegate those task. It sounds a lot easier than it is. We tend to think that it will only get done right by you being the one doing it, and that is false. There’s others out there can can do those task and do them better you.

      I’m working on it with the small task. Thanks for reading….”Enjoying the Journey”

  4. What I do not understand is the grounds of the very first conversation with the seller if it is not to talk about buying the house. I mean do you cold call them and then spend the next 2-3 phone calls discussing “How ’bout those Cubs”?

    • Marcus Maloney


      You do briefly mention the nature of the call but you true focus is to find out about them and the situation their in. So when they call about the house you have to work on finding out how you can possibly solve that issue. Once you have that solidified, if the Cubs are the topic of conversation then you talk about that. You are trying to build rapport and a commonality with the seller. People do business with people the like, and I’ve seen it where people made higher a higher offer than mine but because they liked me they went with my offer and vice versa I’m sure.

      You don’t want to come off as the greedy investor that only care about one thing. I’ve been talking with a lady for about 6 months now about her son moving to the UK and now we have built the rapport and will be getting that deal under contract this week. Remember the $ is in the follow up. Hope this helped

      “Enjoying the Journey”

  5. It was good reading the advice and comments as I’m going to walk through my first potential wholesale tomorrow with the owner.

    I know the owner so we already have a good rapport, the property is not occupied, is in nice neighborhood, shouldn’t need any major repairs, no mortgage, taxes are current and the owner wants to get out from under the property. I’ve done preliminary numbers for comps, ARV and probable max offer depending on I see in the walk through.

    Any suggestions woul be greatly appreciated. Thanks

    • Craig,

      Sounds like you possibly have a layup here. I would take 3 lowest comps with you and if you can’t find 3 that fit within the standard wholesale algorithm (ARV*.70-Repairs-Your Fee), then I would inform your seller of the updates that are needed (all properties need updates unless they are new builds or recently remodeled), I would continue to reiterate that you are paying all closing cost and saving him/her on realtor fees, which could be a savings of 10-15%

      Grant Cardone is an excellent person to follow when it comes to negotiating, google him, he has some great book on negotiating.

      Hope this helps and good luck “Enjoying the Journey”

Leave A Reply

Pair a profile with your post!

Create a Free Account


Log In Here