Low-Capital Deal-Making Strategy
Wholesaling: Find Deals, Connect Buyers, Earn Fees
Master real estate wholesaling to generate income without capital or credit. Learn how to find off-market deals, build a buyers list, and profit by connecting motivated sellers with ready investors.
The Wholesale Process
Four steps to profitable wholesale deals
Find Motivated Sellers
Source off-market deals from distressed sellers, probate estates, foreclosures, or expired listings. Build a marketing system to generate consistent leads.
Analyze & Negotiate
Determine the maximum allowable offer (MAO) that provides margin for your buyer. Negotiate favorable contract terms including assignment rights.
Market to Buyers
Present the deal to your buyers list. Highlight the discount to market value and potential profit. Speed is critical - wholesale deals move fast.
Assign & Close
Assign your contract to the end buyer for a fee. Ensure all paperwork is correct and coordinate with title company for smooth closing.
Essential Wholesale Calculations
Master these formulas to structure profitable deals
Maximum Allowable Offer (MAO)
The most you can pay to leave room for your fee and buyer profit
Assignment Fee
Your profit for finding and contracting the deal
Buyer's Profit Target
What your buyer needs to make for the deal to be attractive
Is Wholesaling Right for You?
Consider these factors before starting
Advantages
- Very low capital requirements
- Quick profits - typically 30-90 days
- No rehab or renovation needed
- No long-term property management
- Learn market quickly through deal flow
- Scalable with systems and team
Challenges
- Requires strong deal-finding skills
- Income is transactional, not passive
- Need a solid buyers list
- Deals can fall through
- Competitive market in many areas
- Legal complexities vary by state
How Reico AI Powers Your Wholesale Business
Tools to analyze deals and connect with buyers faster
Wholesale Calculator
Calculate MAO, assignment fee, and buyer profit margins. Ensure deals are attractive to your buyers before locking them up.
Deal Sharing
Easily share property analysis with your buyers list. Provide professional reports that showcase the opportunity.
Buyer Network
Build and manage your buyers list within Reico AI. Connect with active investors looking for wholesale deals in your market.
Market Data
Access comp sales and ARV data to make accurate offers. Validate your numbers with real market data before contracting.
Example Wholesale Deal
How a typical wholesale transaction breaks down
3-Bedroom Distressed Property
Found through direct mail marketing campaign
Deal Structure
Buyer's Numbers
Your Assignment Fee
Earned in 45 days
Buyer's Profit
Win-win deal structure