The Basics of Real Estate Wholesale: Understanding the Process

Real estate wholesale is a popular trend in the world of real estate. Many people use this strategy for making profits through real estate, without actually owning a property. Essentially, real estate wholesale is the process of finding and contracting a property from a property owner and then assigning that contract to another party for a fee. In this article, we will discuss the basics of real estate wholesale, including the process and the benefits.

The Process of Real Estate Wholesale

The process of real estate wholesale involves these basic steps:

1. Identifying a property: The first step in real estate wholesale is to identify a property that you can purchase for a price lower than its market value. One can search for properties that are going through foreclosure, are in probate, or are being sold by owners who are motivated or need to sell the property quickly.

2. Researching the property: After finding a property, research it thoroughly to determine its fair market value, comparables, real estate trends, and any other relevant information. Once you’re satisfied with your research, present an offer to the owner.

3. Contract the property: If the owner is willing to sell, draft a purchase agreement or contract that is favorable to you. This contract will include your terms and conditions, and also outline the terms of the agreement between you and the seller.

4. Assign the contract: For real estate wholesale, the contract is often assigned to another party who is interested in purchasing the property. Once the assignment fee is agreed upon, the original contract is given to the new buyer, and you are free to move on to the next deal.

The Benefits

There are several benefits to real estate wholesale that make it an attractive option for investors.

1. Flexibility: Real estate wholesale offers a great deal of flexibility to investors. You can conduct your business from anywhere in the world, as long as you have a phone, a computer, and internet access.

2. Low risk: Real estate wholesale is relatively low risk when compared to other forms of real estate investing. Investors can make large profits without actually owning the property.

3. High profits: Real estate wholesale offers the potential for high profits with minimal investment. Typically, the profits are made from the difference between the purchase price and the sale price.

4. No need for capital: Unlike other real estate investments, you don’t need to have a lot of capital to start real estate wholesale. All you need is a good eye for identifying good deals, excellent negotiation skills, and a willingness to learn.


Real estate wholesale is an excellent way to make profits from real estate investments without owning a property. With a simple process and ample benefits, it can prove to be a worthwhile investment for the savvy investor. By following the steps we have outlined, you can confidently and successfully wholesale properties and make money.