The 2 Ways You Can Wholesale Real Estate

Wholesaling is a great strategy for real estate investors at all levels and I’m going to break down in detail the 2 different ways you can wholesale real estate.


1. The assignment

The wholesale assignment is the process of finding a discounted property, putting that property under contract, you then market that contract for sale at a higher price.


When you find your buyer that wants to buy your contract, you assign your rights using an assignment of contract, and you get paid a fee for doing so.


For example:
- You find a seller who wants to sell their property for $100,000 (It’s after repair value is $210,000)
- You put the property under contract for $100,000
- You market and find a buyer for your contract at $110,000
- You make the difference of what you bought and sold the contract for


The numbers:

$110,000 - $100,000 = $10,000 (your wholesale fee)

You didn’t buy a house as you didn’t own it. You simply found a great deal and flipped your contract to someone who is going to fulfill on it and take it all the way to the closing table. They paid you to enter into the contract that you entered into!


You should use this method on all of your smaller profit deals. Typically the people that buy these contracts will give you trouble if they feel like you’re making too much money.

On your smaller deals… Assign them!


2. The double closing

The wholesale double closing is basically just a really fast transaction and this can be done a couple of ways.


You find a discounted property, you put that property under contract, you find your buyer, close on the property, and get paid at closing.


Sounds crazy why you would do this but this is actually my favorite way to wholesale for a lot of reasons!


1. It’s a cleaner transaction (in my opinion)

2. You don’t have to disclose what you bought the property for

3. You make more money

4. You can legally market the home anyway you want (including the MLS) if you own the property. You have to be very careful on how you market if you are assigning the deal and advertising something that you don’t own.


In the double closing, you can choose to find your buyer before or after you close on the property. The choice is yours!!!


I LOVE to wholesale real estate where I find the property, close on it so I own it, then look for my buyer and sell it. It’s a very clean transaction but you better know your market and have a good deal in order to do this method.


The double close method should be used on all your wholesale deals where you are making more money, ultimately to hide what you’re truly making!

Lastly, I want you to think about something for a second.


I’m no attorney and I sure don’t play one on TV BUT I will say this…


If you’re marketing that “We or I buy houses” you should probably buy houses and not assign everything out so stay true to what you say. I know crazy isn’t it?


We just recently published a blog post on what you should be offering on all of your wholesale deals.

CLICK HERE to learn what you should be offering on all your wholesale deals

If you don’t have your Systemate account yet… Don’t worry, you can click below and watch the demo and see why we’re the #1 Real Estate technology for 2021!


This blog post was written by...

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John Cochran
Systemate CEO
Real Estate Investor

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