How to Find Properties to Wholesale

Last updated: July 3, 2025

Real estate wholesaling is a dynamic investment strategy that allows you to generate substantial profits without requiring significant capital, property ownership, or a real estate license. By identifying off market properties at below-market prices and assigning the purchase contracts to cash buyers, wholesalers act as intermediaries, earning assignment fees while delivering value to both sellers and buyers. The key to success lies in sourcing high-potential properties, building a robust buyers list, and leveraging tools like the OfferMarket Investment Property Marketplace. This guide synthesizes proven strategies from industry experts to help you find, evaluate, and wholesale off-market properties effectively. With a focus on actionable steps, ethical practices, and scalable systems, this article equips both beginners and seasoned investors with the tools to thrive in the competitive world of real estate wholesaling.

Understanding the Wholesaling Process

Real estate wholesaling involves finding undervalued or distressed properties, securing them under contract at a price significantly below market value, and assigning or selling the contract to a cash buyer—typically a fix-and-flip investor or landlord—for a fee. Unlike traditional flipping, which requires purchasing, renovating, and reselling a property, wholesaling involves no ownership or renovations, making it a low-risk, high-reward strategy. The wholesaler’s profit comes from the assignment fee, which is the difference between the contracted price with the seller and the price paid by the end buyer.

The wholesaling process follows these core steps:

1. Identify a Property: Source a distressed or undervalued property owned by a motivated seller.
2. Secure a Contract: Negotiate a purchase agreement with the seller at a price that allows room for your profit and the buyer’s margin.
3. Market the Contract: Find a cash buyer willing to purchase the contract, typically through your buyers list or platforms like OfferMarket.
4. Close the Deal: The buyer closes directly with the seller, and you collect your assignment fee without ever owning the property.

Success hinges on finding properties with high after-repair value (ARV), motivated sellers, and conditions that appeal to cash buyers. This requires a deep understanding of local markets, strong negotiation skills, and a network of reliable investors. Wholesaling is ideal for those with limited capital, as startup costs are minimal—often just $500–$2,000 for marketing and earnest money deposits (typically $10–$100).

Researching Local Real Estate Markets

A thorough understanding of your local real estate market is the foundation of successful wholesaling. Market research helps you identify neighborhoods with high demand, undervalued properties, and motivated sellers, ensuring you target deals with strong profit potential.

Key Research Strategies

• Analyze Market Trends: Study recent sales data, median home prices, days on market (DOM), and price appreciation trends to gauge market conditions. Tools like Zillow, Redfin, PropStream, or NeighborhoodScout provide insights into whether a market is appreciating, stable, or declining. For example, markets with low DOM and rising prices indicate strong buyer demand, ideal for wholesaling.
• Focus on High-Potential Neighborhoods: Target emerging or gentrifying areas with new infrastructure, transportation access, or major developments (e.g., new schools or commercial hubs). These neighborhoods attract fix-and-flip investors and landlords looking for rental properties.
• Understand Property Values: Calculate the ARV by analyzing comparable sales (comps) of similar properties in the same area. Use recent sales data from platforms like Realtor.com or MLS (if accessible) to ensure accurate valuations. This helps determine if a deal leaves enough margin for repairs, your assignment fee, and the buyer’s profit.
• Identify Motivated Seller Indicators: Look for markets with high foreclosure rates, aging populations, or economic challenges, as these often yield motivated sellers willing to sell at a discount. Public records or tools like Mashvisor can highlight areas with high property turnover or distress signals.

Practical Tips

• Attend city council meetings or read local news to stay informed about developments like new highways, zoning changes, or commercial projects that could boost property values.
• Join real estate forums or local Facebook groups to gain insights from other investors and professionals.
• Use demographic data, such as school ratings or crime statistics, to assess neighborhood desirability for buyers.

By combining data-driven research with local knowledge, you’ll pinpoint areas where off-market deals are most likely to emerge, giving you a competitive edge.

Leveraging Online Property Platforms

Online platforms are powerful tools for finding leads on distressed properties or motivated sellers, even if they primarily list on-market properties. While off-market deals are the backbone of wholesaling, these platforms can uncover hidden opportunities when used strategically.

Top Platforms for Wholesalers

• Zillow and Redfin: Filter for properties listed as “for sale by owner” (FSBO), “fixer-upper,” “price reduced,” or those on the market for a long time (high DOM). FSBO listings often indicate motivated sellers looking to avoid realtor commissions.
• Multiple Listing Service (MLS): If you have access through a realtor or subscription, the MLS offers detailed data on distressed listings, price reductions, expired listings, or properties in pre-foreclosure. Expired or withdrawn listings can signal seller fatigue, making them prime targets for wholesaling.
• Craigslist and Facebook Marketplace: Homeowners occasionally list properties on Craigslist and Facebook Marketplace, often indicating a willingness to negotiate directly. Search for keywords like “needs work” or “motivated seller.”
• Public Records Websites: Tools like PropertyRadar, BeenVerified, or DealMachine allow you to search public records for properties in probate, foreclosure, or with delinquent taxes—prime candidates for wholesaling.
• PropStream: this real estate data platform provides advanced filters for identifying distressed properties, absentee owners, or high-equity homes, streamlining your lead generation for off market properties.

Maximizing Online Tools

• Use keyword filters like “fixer-upper,” “cash only,” or “as-is” to narrow your search to properties suitable for wholesaling.
• Cross-reference platform data with local market trends to ensure the property aligns with your buyers’ criteria (e.g., high ARV, low repair costs).
• Act quickly on promising leads, as on-market properties are visible to other investors and may require faster negotiation.

While these platforms are useful, off-market deals often yield higher profits due to less competition. Combining online tools with direct marketing and networking maximizes your ability to source deals.

OfferMarket Investment Property Marketplace

The OfferMarket Investment Property Marketplace is a game-changer for wholesalers, offering a dedicated platform to connect with serious buyers and streamline the wholesaling process. Unlike general listing sites, OfferMarket is tailored for investment properties, making it ideal for marketing off-market deals.

Key Features of OfferMarket

• No Joint Ventures (JV) on Listings: Wholesalers cannot co-wholesale or JV on listings posted by others, ensuring exclusivity and protecting your efforts from deal poaching.
• Free Listings for Wholesalers: You can post off-market deals at no cost, making it an accessible tool for marketing contracts to a wide audience of investors.
• POF-Verified Buyers Only: Buyers must provide Proof of Funds (POF) to submit offers or inquire about listings, ensuring you deal with qualified investors who can close quickly.
• Streamlined Process: OfferMarket simplifies listing properties, sharing deal details, and communicating with buyers, allowing you to focus on sourcing new deals.

How to Use OfferMarket Effectively

• Create detailed listings with high-quality photos, accurate ARV estimates, repair cost breakdowns, and property condition details to attract serious buyers.
• Use OfferMarket’s Cash Offer Calculator (detailed later) to validate your offer price before listing, ensuring the deal is competitive and profitable.
• Leverage the platform’s targeted investor audience to assign contracts quickly, reducing the time between securing a contract and closing.
• Build a reputation as a reliable wholesaler by providing transparent, well-researched deals, which can lead to repeat business with buyers.

OfferMarket’s focus on transparency and efficiency makes it an essential tool for wholesalers looking to scale their operations and connect with cash buyers.

Networking with Real Estate Professionals

Networking is a cornerstone of finding off-market properties, as many deals never reach public platforms. Building relationships with real estate professionals unlocks access to exclusive leads and insider knowledge.

Key Professionals to Connect With

• Realtors: Agents specializing in distressed properties or investor clients often know about pocket listings or sellers eager to offload properties quickly. Offer to refer clients to them in exchange for leads.
• Other Wholesalers: Partner with wholesalers to share leads or co-wholesale deals, expanding your access to properties while splitting profits.
• Investors and Flippers: Cash buyers who regularly purchase properties can provide tips on high-demand neighborhoods or sellers they’ve encountered.
• Contractors and Property Managers: These professionals often know about distressed properties or owners struggling with maintenance, making them valuable lead sources.
• Attorneys: Probate or foreclosure attorneys can connect you with sellers facing legal or financial challenges.
• Local Real Estate Investment Associations (REIAs): Attend REIA meetings, seminars, or networking events to meet professionals, exchange leads, and find mentors.

Networking Strategies

• Attend local meetups, REIA events, or investor forums to build relationships. Bring business cards and follow up with new contacts promptly.
• Offer value in return, such as sharing market insights, referring clients, or providing leads that don’t fit your criteria.
• Join online communities like BiggerPockets or local Facebook groups to connect with professionals virtually.
• Host your own meetups or webinars to establish yourself as a knowledgeable wholesaler and attract leads.

A strong network becomes a reliable pipeline for off-market deals, reducing reliance on public listings and giving you a competitive advantage.

Finding Distressed Properties and Motivated Sellers

Distressed properties and motivated sellers are the lifeblood of wholesaling, as they’re often willing to sell at a discount due to financial, physical, or personal circumstances. Identifying these opportunities requires proactive research and outreach.

Strategies for Finding Distressed Properties

• Pre-Foreclosure Properties: Use public records, Foreclosure.com, or county websites to identify properties in pre-foreclosure. Contact homeowners directly to offer a solution before the foreclosure process completes.
• Probate Properties: Properties in probate, where the owner has passed away, are often sold by heirs eager to liquidate assets. Check probate court records or partner with probate attorneys for leads.
• Delinquent Taxes: Homeowners behind on property taxes may be motivated to sell to avoid liens. County tax assessor websites often list delinquent properties.
• Vacant or Abandoned Properties: Drive through neighborhoods to spot vacant homes (e.g., overgrown lawns, boarded windows). Use skip-tracing tools like DealMachine to locate owners and reach out.
• Divorce or Relocation: Sellers facing life changes like divorce or job relocation often need to sell quickly. Target these groups through direct mail or online ads.

Approaching Motivated Sellers

• Empathy and Transparency: Approach sellers with understanding, addressing their pain points (e.g., financial distress, unwanted property). Clearly explain that you’re assigning the contract to an investor.
• Direct Outreach: Use professional, concise communication when contacting sellers via phone, text, or mail. Highlight how you can solve their problem quickly and fairly.
• Follow-Up: Many sellers need time to decide. Create a system to track leads and follow up consistently without being overly aggressive.

By focusing on distressed properties and motivated sellers, you can secure deals at prices that leave room for your assignment fee and the buyer’s profit.

Using Direct Marketing Strategies

Direct marketing proactively targets motivated sellers who don’t publicly list their properties, generating a consistent flow of leads. Use county records and tools like PropStream to pinpoint high-equity properties, absentee owners, or distressed assets (e.g., those with delinquent taxes).

Top Direct Marketing Tactics

• Direct Mail: Send postcards or letters to targeted lists, such as absentee owners, pre-foreclosure homeowners, or those with high equity. Use personalized messages like, “We buy houses in any condition! Cash offer, fast closing.” Include your contact information and a clear call-to-action.
• Bandit Signs: Place signs in high-traffic areas with messages like “We Buy Houses Cash!” Check local regulations to avoid fines.
• Online Ads: Run targeted ads on Google, Facebook, or Instagram using keywords like “sell my house fast” or “cash for homes.” Use geotargeting to focus on specific neighborhoods.
• Cold Calling or Texting: Use skip-tracing tools to find homeowner contact information. Be professional, concise, and compliant with regulations like the Telephone Consumer Protection Act (TCPA) for texting.
• Landing Pages: Create simple websites or landing pages to capture seller leads from online ads or bandit signs. Tools like ClickFunnels or Leadpages can streamline this process.

Optimizing Your Campaigns

• Track Response Rates: Monitor which strategies (e.g., mailers, ads) generate the most leads and refine your approach based on data.
• Split-Test Messages: Test different mailer designs, ad copy, or call scripts to improve conversion rates.
• Stay Consistent: Regular outreach builds a pipeline of leads. Dedicate a weekly budget to marketing to maintain momentum.

Direct marketing requires persistence, but it’s one of the most effective ways to uncover off-market deals and build a sustainable wholesaling business.

Evaluating Properties for Wholesaling Potential

Not every property is a viable wholesale deal. To ensure profitability, you must evaluate properties carefully, balancing the ARV, repair costs, and market demand. Tools like the OfferMarket Cash Offer Calculator simplify this process.

Key Evaluation Steps

• OfferMarket Cash Offer Calculator: This user-friendly tool helps wholesalers estimate a competitive offer price by inputting the property’s address, condition, square footage, and local market data. The calculator provides an instant cash offer range based on the ARV, estimated repair costs, and a profit margin for you and the buyer. Access it at OfferMarket Cash Offer Calculator to evaluate properties quickly and accurately.

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• Determine After-Repair Value (ARV): Use comps from platforms like Zillow, Redfin, or MLS to estimate the property’s value after repairs. Focus on recent sales of similar homes in the same neighborhood to ensure accuracy.
• Estimate Repair Costs: Conduct a walkthrough or hire a contractor to assess repair needs. Factor in both cosmetic (e.g., paint, flooring) and structural (e.g., roof, HVAC) repairs. As a rule of thumb, cosmetic repairs may cost $20–$40 per square foot, but always verify with a professional.
• Calculate Maximum Allowable Offer (MAO): Use the formula: ARV × 70% - Repair Costs = MAO. For example, a property with an ARV of $200,000 and $30,000 in repairs would have an MAO of $110,000 ($200,000 × 0.7 - $30,000). This ensures room for your assignment fee (typically $5,000–$15,000) and the buyer’s profit.
• Assess Market Demand: Confirm the property is in a high-demand area to ensure quick assignment to a cash buyer. Check local sales trends and buyer interest in the neighborhood.

Practical Example

Suppose you find a property with an ARV of $250,000, requiring $40,000 in repairs. Using the OfferMarket Cash Offer Calculator, you input the property details and local comps. The calculator suggests an offer range of $115,000–$125,000, accounting for a $10,000 assignment fee and the buyer’s profit margin. You verify the ARV with Redfin comps and confirm repair costs with a contractor, ensuring the deal is viable before signing a contract.

Accurate evaluations prevent overpaying and ensure your deals are attractive to buyers, speeding up the assignment process.

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Building a Buyers List

A strong buyers list is critical for closing wholesale deals quickly, as even the best deal is worthless without a buyer. Cash buyers, such as fix-and-flip investors or landlords, are your primary audience.

Strategies for Building a Buyers List

• Identify Cash Buyers: Attend REIA meetings, real estate auctions, or investor forums to meet active buyers. Search public records for recent cash purchases in your area to find potential investors.
• Qualify Buyers: Verify their Proof of Funds (POF) to ensure they can close quickly. Ask about their buying criteria (e.g., preferred neighborhoods, property types, price range).
• Market Your Deals: Use email campaigns, social media, or platforms like OfferMarket to share deal details with your buyers list. Include ARV, repair estimates, photos, and property highlights to attract interest.
• Leverage Online Platforms: Post deals on BiggerPockets, Facebook investor groups, or OfferMarket to reach a broader audience of POF-verified buyers.
• Maintain Relationships: Regularly update buyers with new deals and follow up after closings to build trust and encourage repeat business.

Tips for Success

• Segment your buyers list by location, price range, and property type to match deals with the right investors.
• Partner with title companies or hard money lenders, who often know active cash buyers.
• Use CRM tools like Podio or REsimpli to organize and manage your buyers list efficiently.

A robust buyers list ensures you can assign contracts quickly, minimizing the risk of deals falling through and maximizing your profits.

Legal and Ethical Considerations

Wholesaling is legal in most states, but regulations vary, and ethical practices are crucial for long-term success. Understanding local laws and using proper contracts protects your business and reputation.

Key Considerations

• Local Laws: Some states require a real estate license for wholesaling if you’re marketing properties you don’t own or control. Research your state’s regulations or consult a real estate attorney to ensure compliance.
• Assignment Clauses: Ensure your purchase contract explicitly allows assignment to another buyer. Work with an attorney to draft or review contracts for clarity and legality.
• Transparency: Disclose to sellers that you’re not purchasing the property yourself but assigning the contract to an investor. Avoid making promises you can’t keep.
• Double Closings: In states with strict assignment rules, you may need to perform a double closing, where you purchase the property and immediately resell it to the buyer. This requires more capital but avoids licensing issues.
• Title Issues: Work with a reputable title company to verify the property has a clear title before signing a contract, preventing delays or deal breakers.

Ethical Practices

• Approach sellers with empathy, especially those in distress (e.g., facing foreclosure or probate). Offer fair solutions that address their needs.
• Be transparent with buyers about the property’s condition, ARV, and repair costs to build trust.
• Avoid overpaying for properties or inflating ARV estimates, as this can harm your reputation and lead to failed deals.

Ethical wholesaling fosters trust with sellers, buyers, and professionals, ensuring repeat business and a sustainable career.

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Scaling Your Wholesaling Business

Once you’ve mastered the basics, scaling your wholesaling business can significantly increase your profits and reach. Growth requires systems, automation, and strategic reinvestment.

Growth Strategies

• Automate Processes: Use CRM software like REI BlackBook, Podio, or REsimpli to manage leads, track marketing campaigns, and follow up with buyers and sellers. Automation saves time and improves efficiency.
• Hire a Team: Delegate tasks like lead generation, cold calling, or property evaluations to virtual assistants or local staff. This allows you to focus on negotiating and closing deals.
• Expand Markets: Research new markets with high wholesaling potential using the same strategies (market research, networking, direct marketing). Virtual wholesaling allows you to operate in multiple cities without a physical presence.
• Leverage Technology: Use platforms like OfferMarket to list deals and connect with buyers efficiently. Automate marketing with tools like Mailchimp for email campaigns or ClickFunnels for lead capture.
• Reinvest Profits: Use assignment fees to fund larger marketing campaigns, hire staff, or explore new strategies like pay-per-click (PPC) ads on Google or social media.

Scaling Tips

• Start small, perfecting your process in one market before expanding to new areas.
• Track key metrics (e.g., lead response rates, deal close times) to identify bottlenecks and optimize performance.
• Invest in mentorship or coaching to learn advanced strategies from experienced wholesalers.

Scaling transforms wholesaling into a sustainable, high-income business, but it requires discipline, reinvestment, and a focus on efficiency.

Frequently Asked Questions (FAQs)

What is real estate wholesaling, and how does it differ from flipping?

Wholesaling involves securing a property under contract and assigning it to a cash buyer for a fee, without owning or renovating the property. Flipping requires purchasing, renovating, and reselling a property, involving more capital and risk.

Do I need a real estate license to wholesale properties?

In most states, a license isn’t required if you’re assigning contracts for properties you have under contract. However, some states regulate wholesaling as “brokering” if you market properties you don’t control. Check local laws or consult an attorney.

How much money do I need to start wholesaling?

Wholesaling requires minimal capital—typically $500–$2,000 for marketing (e.g., direct mail, bandit signs) and earnest money deposits ($10–$100). Profits come from assignment fees, not property purchases.

What are the best ways to find motivated sellers?

Effective methods include direct mail, online ads, bandit signs, driving for dollars, networking with real estate professionals, and searching public records for pre-foreclosures, probate properties, or delinquent taxes.

How do I calculate a good wholesale deal?

Use the OfferMarket Cash Offer Calculator or the MAO formula: (ARV × 70%) - Repair Costs = MAO. For example, a property with an ARV of $200,000 and $30,000 in repairs has an MAO of $110,000. Verify ARV with comps and repair costs with contractors.

Is wholesaling legal in all states?

Wholesaling is legal in most states, but regulations vary. Some states require a license or specific disclosures. Always use proper contracts and consult a real estate attorney to stay compliant.

How long does it take to close a wholesale deal?

Most deals close within 7–60 days, depending on the buyer’s financing, title clearance, and contract terms. A strong buyers list and reliable title company can expedite the process.

What are the risks involved in real estate wholesaling?

Risks include failing to find a buyer, underestimating repair costs, overpaying for a property, or violating local regulations. Mitigate these by building a robust buyers list, using tools like the OfferMarket Cash Offer Calculator, and ensuring legal compliance.

Conclusion

Real estate wholesaling is a powerful, low-risk strategy for generating income by connecting motivated sellers with cash buyers. Success requires mastering the art of finding off-market properties through market research, online platforms, networking, and direct marketing. Tools like the OfferMarket Investment Property Marketplace and its Cash Offer Calculator streamline the process, ensuring accurate evaluations and efficient deal distribution. By building a strong buyers list, adhering to legal and ethical standards, and scaling strategically, you can transform wholesaling into a sustainable, high-income business. Start small, refine your approach, and leverage the strategies outlined in this guide to dominate the wholesaling market and achieve long-term success.

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Access exclusive educational resources for wholesalers

Start exploring tailored educational content today with OfferMarket, and leverage our suite of deal evaluation tools, financing options, and learning resources to enhance and grow your real estate wholesaling expertise.

If you’ve found this helpful and would like access to more wholesaling education and insights, sign up for OfferMarket. Membership is free and includes the following benefits:

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If you’re not already a member, we invite you to join our community and elevate your wholesaling skills!

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