How to Wholesale Real Estate: 7 Tips for Beginners & Pros

Interested in real estate wholesaling? It’s an attractive way to jump into the market with minimal upfront investment and low risk. However, low barriers to entry also mean fierce competition—it’s not as straightforward as it might seem.

Thanks to our network of hundreds of real estate professionals, we have valuable insights into what makes a wholesaler successful. In this article, we’ll break down the best tips to help you thrive in real estate wholesaling.

What Is Real Estate Wholesaling?

Real estate wholesaling is a business model that brings together three key parties: the homeowner, the wholesaler, and the buyer. It’s a different game compared to traditional real estate sales, where agents connect buyers and sellers for a fixed commission.

As a wholesaler, you secure a contract with a motivated seller at a discounted price, then assign that contract to a cash buyer for a profit—often without purchasing the property yourself. This approach lets you generate quick revenue without needing significant upfront capital.

Here’s how real estate wholesaling works:

1. Find a motivated seller: Look for homeowners eager to sell quickly, whether due to property damage or personal circumstances.
2. Negotiate a contract: Secure a purchase agreement at a price below market value. This is where you actually make a profit.
3. Locate a cash buyer: Build relationships with investors looking for off-market deals.
4. Assign the contract: Transfer the purchase rights to the buyer for a fee—typically called an “assignment fee” or “wholesale fee.”
5. Close the deal: The buyer finalizes the purchase, and you make a profit on the difference between the seller’s agreed price and the buyer’s final price.

Wholesaling is a small but growing segment of North America’s $150+ trillion real estate investment market. It’s particularly popular in high-turnover cities like Atlanta, Phoenix, and Dallas, where distressed properties and cash buyers are abundant.

7 Proven Real Estate Wholesaling Tips for Success

Real estate wholesaling may seem simple, but standing out in a competitive market requires strategy, the right tools, and a solid understanding of your target audience. Based on what we’ve seen from our most successful real estate clients, here are seven tips to help you succeed at wholesaling.

Tip #1: Identify the Right Audience for Wholesaling

Wholesaling is a niche within the vast real estate market. Not every homeowner looking to sell—or investor looking to buy—is the right fit for your business.

The most successful wholesalers focus on sellers who are motivated to close quickly, often at a discounted price. Here’s a look at who they are:

• Distressed homeowners: Homeowners facing foreclosure, divorce, job loss, or financial hardship are often looking to sell below market value for a quick close.
• Absentee owners and landlords: Owners who don’t live in their properties—especially those struggling with vacant or problem rentals—may be eager to sell.
• Inherited property owners: These individuals have inherited homes they don’t want to manage or maintain.
• Owners with expired listings: These are homeowners whose properties failed to sell through traditional real estate channels and are still looking for buyers.

The key to maximizing profit in wholesaling is to secure properties below market value from sellers who need a fast sale. Doing so gives you the room to offer attractive rates to investors while still turning a profit.

But where can you find these motivated sellers? Here are a few places to keep an eye on:

• Your network: The people you already know—friends, family, and social media connections—can be a great source of motivated sellers. Whether they’re dealing with an inherited property, relocating, or need a fast sale, letting them know you can offer a hassle-free solution could lead to valuable opportunities.
• County foreclosure auctions and notices: Monitor foreclosure listings and attend local auctions to connect with distressed homeowners before they lose their properties.
• Tax delinquency lists: Identify homeowners who are behind on property taxes and may be motivated to sell before facing legal consequences.
• Eviction records and landlord forums: Reach out to landlords dealing with problem tenants or vacant properties who may be eager to sell.
• Driving for dollars: Physically scout neighborhoods for neglected, vacant, or distressed properties and reach out to owners directly.

Tip #2: Build Trust and Credibility With Homeowners

Many homeowners, especially those in distress, are cautious about being taken advantage of. Trust plays a huge role in real estate transactions, and homeowners are more likely to work with wholesalers who demonstrate credibility, transparency, and a genuine commitment to helping them find the best solution.

The PwC 2024 Trust Study backs this up, with the vast majority of executives (over 93%) seeing a direct link between credibility and profits—a connection that holds true in real estate, where trust can be the deciding factor in closing deals.

Building trust doesn’t happen overnight, but when done right, it benefits both your business and the homeowners you serve. This ultimately leads to more deals, stronger referrals, and long-term success.

Here’s how to get started:

• Build a solid personal brand: Create a website showcasing your business details, background, credentials, past work, and client testimonials. This not only sets you apart but also reassures homeowners that they’re working with a professional who values their needs.
• Share valuable content on social media: Publish articles and stay active on social media. But don’t just push deals—share real insights about the market and offer solutions to common problems.
• Be transparent: Always be upfront about how the wholesaling process works. Nothing kills trust faster than keeping sellers in the dark.

Tip #3: Use a Multichannel Lead Approach for Lead Generation

Think about your own online habits. You probably bounce between multiple apps and platforms every day. Your potential clients are no different. In fact, studies show that the average consumer uses 6.48 platforms every month.

That’s why relying on one lead source, like direct mail or referrals, is a recipe for failure. To expand your reach and increase deal flow, mix things up. Use multiple channels—such as cold calling, social media, direct mail, referrals, and online ads—to build a steady pipeline of opportunities. Each method comes with unique advantages, and combining them helps you stay top of mind with potential sellers.

Here’s how different channels work:

• Cold calling: Get in direct contact with sellers. This allows you to understand their needs and pitch tailored solutions. 
• Direct mail campaigns: Generate inbound leads by reaching homeowners who may not be actively searching online.
• Referrals: Leverage relationships with real estate agents or attorneys who can connect you with motivated sellers. Referrals can also come from people you personally know—colleagues, friends, and family—who may know someone looking for a fast, hassle-free sale.
• Online ads (Facebook, Google, and marketplaces): Target homeowners who are actively searching for solutions.

For example, design a free resource like a downloadable PDF, a checklist, or a video series for homeowners looking to sell their property quickly. Then, run Facebook and Google ads offering this resource in exchange for emails and phone numbers.

This approach generates highly relevant leads of motivated buyers you can contact directly to move the conversation forward.

Tip #4: Grow and Leverage Your Network

A strong network can connect you with motivated sellers, reliable cash buyers, and experienced professionals who can share valuable industry insights. In wholesaling, who you know often matters as much as what you know.

To build your network, attend real estate investment groups, wholesaling meetups, and industry conferences where investors and professionals gather. Online communities on Facebook, LinkedIn, and real estate forums are also great places to engage with potential leads and stay updated on market trends.

Don’t underestimate your existing connections, either. According to research, 89% of customers trust recommendations from people they know. By staying top of mind with your network, you increase the chances they’ll think of you when new opportunities arise, bringing new prospects your way.

Consistently share value on your social platforms—whether it’s market insights, deal opportunities, or industry updates. The more people see you as a knowledgeable and trustworthy wholesaler, the more deals you’ll attract and close successfully.

Tip #5: Invest in the Right Real Estate Wholesaling Tools

Managing leads and deals manually can be overwhelming. The right real estate wholesaling tools can automate tasks and help you significantly improve efficiency. Here are some examples:

1. Customer Relationship Management (CRM)

A CRM system helps you manage seller and buyer data, track conversations, and automate follow-ups—ensuring no opportunity slips through the cracks.

2. Predictive Dialer

A predictive dialer, like Readymode, lets you call more homeowners efficiently. It comes with built-in CRM, local presence dialing, caller ID reputation monitoring, and integrations with other essential tools.

3. Contract Management Software

Digital contract solutions allow you to send, sign, and store agreements electronically, speeding up the deal process and keeping everything organized.

4. Property Listings and Analysis Tools 

Platforms that provide property insights, historical sales data, and market trends help you assess deals accurately and make informed investment decisions.

AxStone Investments, a wholesale real estate company, is an excellent example of how leveraging the right tools can boost business performance. By implementing Readymode’s CRM and predictive dialing solutions, the company increased call answer rates and reduced cost per acquisition by 35%.

The best part? Most of these tools can seamlessly integrate into your existing tech stack and workflows—without major adjustments or substantial costs.

Tip #6: Understand the Relevant Rules and Regulations

Real estate laws vary at the local, state, and federal levels. Failing to comply can result in fines, lawsuits, or even legal action against your business. To protect yourself and operate legally, you need a solid understanding of wholesaling laws, disclosure requirements, and contract regulations in your target market.

For example, in Florida, wholesalers cannot market a property they don’t own unless they are licensed real estate agents. Instead, they can only market the contract itself. Other states have similar restrictions or require additional disclosures to both buyers and sellers.

But legal compliance doesn’t stop at contracts. Your outreach methods—calls, texts, mail, and ads—each have their own rules. For instance, cold calling and texting are regulated under the Telephone Consumer Protection Act (TCPA), and violations can lead to hefty fines. To ensure you’re covered on all fronts, consider using outreach tools with built-in compliance features, like Readymode, to scale your business while staying within legal boundaries.

Working with a real estate attorney can also help you navigate local laws, ensure your marketing efforts remain compliant, and build credibility while avoiding costly legal pitfalls. When everything is done by the book, closing deals becomes much smoother.

Tip #7: Target High-Value Locations

High-growth cities with strong job markets and rising rental demand offer some of the best opportunities for wholesaling. States like Florida, Georgia, Texas, and North Carolina—with thriving cities like Atlanta, Houston, Orlando, and Charlotte—offer high turnover rates and investor-friendly regulations.

For instance, a three-bedroom home in Austin, Texas could sell for twice the price of a similar property in a smaller, less competitive market. If you’re outside these locations, virtual wholesaling can help you expand beyond your local area and target profitable markets remotely. With online tools and local partnerships, you can secure contracts in these high-demand areas without being physically present.

To boost contact rates, use local presence dialing with Readymode to make calls appear as if they’re from the same area code as your target market. This strategy allows you to tap into lucrative wholesale opportunities, close deals faster, and overcome geographic limitations—all without relocating or dramatically increasing operational costs.

Key Takeaways: Be the Real Estate Wholesaler Clients Want

Homeowners want a trustworthy wholesaler who can connect them with buyers ready to close quickly and at a fair price. Cash buyers, on the other hand, seek reliable wholesalers who can deliver solid investment opportunities. You can become that wholesaler by building a credible brand known for actionable, high-quality insights and transparent, fair dealings.

Readymode can make your business more efficient by managing your client data and equipping you with tools like predictive and local presence dialing, which can instantly boost conversion rates.

If you haven’t tried Readymode yet, book a free demo today to experience the platform and see how it can transform your business.