Wholesaling Workflow: Lead → Offer → Contract → Assignment

A wholesale deal moves from first contact with a seller to handing off the contract to a buyer. Here's how the stages fit together and what to do at each step.

First, a simple picture

Four main players show up in almost every wholesale deal:

• Seller — the property owner who wants to sell
• You (the wholesaler) — you get the property under contract, then find a buyer
• Buyer — the investor or flipper who will buy the contract (or the property) from you
• Title company — they handle the paperwork and money at closing

Step 1: Lead

A lead is a potential seller: someone who might sell a property. You find leads from mail, lists, referrals, or driving for dollars. You log the address, owner, and how to reach them. Good notes here make the rest of the deal easier.

Motivated sellers are people in situations that push them to sell: divorce, job move, inherited property, behind on payments, or just want out. The kinds of questions you want to answer: Do they need to sell fast? What's wrong with the property? What's their bottom line?

Step 2: Offer

Once you've talked to the seller and run numbers, you send an offer. The offer is a price and terms (e.g. cash, closing date). If they say no, you note why and when to follow up. If they're interested, you move toward a contract.

Your maximum allowable offer (MAO) is the highest price you can pay and still leave room for your buyer and your fee. A simple formula: take the after-repair value (ARV), subtract repairs, closing costs, and the buyer's profit, then subtract your assignment fee. What's left is your MAO. Example: ARV $200k, repairs $25k, buyer profit $20k, your fee $10k → you might offer around $130k–140k (depending on closing and holding costs).

Step 3: Contract

When the seller accepts, you get the property under contract. You use a purchase agreement that gives you the right to buy (or assign). Key points it should cover:

• Purchase price and earnest money
• Closing date and any contingencies
• Assignment clause so you can sell the contract to a buyer

State rules vary. Some states are very assignment-friendly; others restrict or require specific language. Always use a contract that's legal in your state and, when in doubt, get a local real estate attorney to review it.

Step 4: Send it to title

Once you're under contract, you open the deal with a title company (or the seller's title company, if they already have one). The title company checks that the seller actually owns the property and that there are no liens or surprises. They also coordinate the closing: who signs what, when money moves, and how the deed and assignment are recorded.

Common issues: title problems (liens, heirs, wrong name on deed), seller backing out, or delays. Stay in touch with the title officer and your buyer so everyone knows the timeline.

Step 5: Assignment

You find a buyer who wants the property at a higher price than your contract price. Buyers want to see the contract, the numbers (ARV, repairs, your price), and sometimes a walk-through or photos. You send them an assignment contract: they're buying your position in the deal for an assignment fee. At closing, they pay the seller (and you); you never actually buy the property yourself.

Assignment vs. double close: In an assignment, you assign the contract to the buyer and they close with the seller; you get your fee at that one closing. In a double close, you'd close with the seller and then immediately close with the buyer (two closings). Assignments are simpler and more common for wholesalers; some buyers or title companies prefer a double close, so be ready to discuss both.

Step 6: Close

At closing, the buyer pays the seller (and any liens); the title company distributes funds. You get your assignment fee—usually a wire or check at the table. Once the deed and assignment are recorded, the deal is done. Keeping track of each deal's stage—lead, offer, contract, title, assignment, close—helps you stay on top of follow-ups and deadlines.

Beginner checklist

• Lead — Build a list and a system to follow up so no one falls through the cracks.
• Numbers — Know your MAO and run the numbers before you offer.
• Contract & title — Use a proper purchase agreement and get it to title early so issues surface fast.
• Buyer — Build a short list of cash buyers who close so you're not stuck under contract with no exit.

Full example

You get a house under contract for $155k. Repairs are about $10k; ARV is $165k. You assign to a buyer for $165k and charge a $10k assignment fee. At closing, the buyer pays $165k; the seller gets $155k, you get $10k. The buyer is in for $165k on a property they expect to be worth $165k after repair—they're banking on margin from their own strategy (e.g. rent, refinance, or quick flip).

Rookie mistakes

1. Offering without running numbers — you tie up a deal you can't profit from.
2. No assignment clause — you can't assign the contract; you're stuck.
3. Skipping title — liens or ownership issues kill the deal at the last minute.
4. No buyer list — you're under contract with no one to assign to.
5. Poor follow-up — leads go cold when you don't stay in touch.
6. Overpromising to the seller or buyer — under-promise and over-deliver so closings actually happen.

FAQ

Do I need a real estate license to wholesale?

It depends on your state. Some states allow wholesaling without a license as long as you're not marketing property you don't own in a way that requires a license. Others require a license for certain activities. Check your state's rules and, if needed, talk to a real estate attorney.

How do I find buyers?

Build a list: investors at meetups, Facebook groups, bandit signs, direct mail, and referrals. Qualify them (cash or hard money, proof of funds, what they buy) so you're sending deals to people who can actually close.

What if the seller backs out?

Your contract should spell out what happens (e.g. earnest money returned, damages). Sometimes sellers get cold feet; stay professional, document everything, and move on to the next deal.

Simplest next step

• Get one lead source working (e.g. driving for dollars or a small list) and log every lead.
• Learn to run the numbers on one deal so you know your MAO.
• Get a purchase agreement that includes an assignment clause and is valid in your state.
• Introduce yourself to one title company and ask how they handle wholesale assignments.
• Meet or contact at least one cash buyer so you have a name when you get your first contract.