I buy from wholesalers regularly. I've seen good packages and bad ones, fair deals and deals that shouldn't have been sent. This guide is written from the buyer side — which means it's actually useful for wholesalers who want to build a reputation for bringing real deals.
You cannot negotiate a purchase price you can't analyze. Before you make one call or knock one door, learn how to estimate ARV from comparable sales, estimate rehab costs by condition, and calculate a buyer's maximum offer. Your assignment fee lives inside that spread — you need to understand the math to know where it is.
Formula: Buyer's Max Offer = (ARV × 0.70) − Rehab. Your contract price needs to be below that number with room for your fee.
New wholesalers fail because they try everything at once and do nothing well. Pick one lead channel, master it, and stay with it for 90 days before adding another.
The single most common wholesaler mistake: finding a deal before having a buyer. When your contract period is 30 days, you don't have time to build a list from scratch.
Build your list now: attend local REIA meetings, post in BiggerPockets forums for your market, network with title companies who see cash closings, and respond to "we buy houses" signs in your target area. Get 50–100 names with contact info before you need them.
Your dispo package is your product. A one-line email with an address and a price is not a dispo package — it's noise. A professional package includes verified comps, rehab estimate, condition notes, photos, close deadline, and EMD requirement.
Buyers who receive professional packages respond faster and back out less. It signals that you're a serious operator who knows their numbers.
When a seller agrees to your price, move fast. Get the purchase agreement signed within 24 hours. Use an assignment-friendly contract (standard in most markets — have a real estate attorney review your template before use). Collect a small EMD — $500–$2,000 — to show good faith.
When your end buyer is identified, execute the assignment agreement. Your fee is typically paid at closing — though some buyers will pay a portion upon signing the assignment to lock in the deal.
Dan White is a licensed Virginia real estate agent at Pearson Smith Realty and founder of FreeDealCalc.com. He buys wholesale deals in Northern Virginia and has been investing for 20+ years.