How To Find Your First Wholesale Deal in 2024

If you’re looking for the path of least resistance for getting into real estate investing, wholesaling is one of THE easiest ways to get started.

With wholesaling, there’s minimal risk involved, you don’t have to use your own cash or credit, you don’t have to beg family and friends for their cash and credit, and you never have to swing a hammer.

When you’re learning wholesaling, though, you get to learn the foundational skills that directly transfer over to more “traditional” investing strategies.

In this guide, we’re going to break down the process for you and show you exactly how to find your first wholesale deal so you can get the ball rolling.

How To Wholesale Houses Step By Step

While wholesaling real estate is one of the easiest ways to get started as a new investor, there’s certain steps you’ll need to take to ensure your success.

This is one area many people get wrong.

By skipping any of these steps (especially the first step) you’re greatly increasing the chances that you make costly mistakes and end up wasting a ton of time.

To avoid that, take your time with each of the steps below and ask questions from a seasoned real estate investor or get a mentor who can guide you along the way.

Since this is a quick start guide, we’ll link to relevant blog posts that dive deeper into each of the areas we discuss so you get a full picture of the process.

Step #1: Understand the due diligence process.

This step is probably THE most critical to get right.

If you fail to perform proper due diligence, you may luck into getting properties under contract, but the chances of you flipping those contracts to an investor are pretty slim.

You could end up missing key details about the property that make them worth less than you think, or offering a price that’s way too high for what an investor will pay and be able to profit from.

With proper due diligence, though, you uncover some insanely attractive deals, get them under contract for the right price, and turn a healthy profit — while your investor makes good money, too.

To help you understand the process, check out our guide to due diligence for new real estate investors.

Step #2: Build a list of cash buyers.

Once you understand what makes a great property and what your investors are looking for in the contracts you bring them, you’ll want to start building a list of cash buyers.

As a general rule of thumb, you want to make sure your cash buyers have 3 things in common…

First, they need to have access to cash.

A great cash buyer will have deep pockets or be able to quickly access capital so they’re not waiting weeks or months to close on a deal.

Second, they need to have a track record of success.

You want cash buyers who have proven to be successful in real estate. You can easily look them up and see that they’ve done a bunch of flips or own a bunch of rentals.

Finally, you need them to be responsive.

Nothing is worse than having a great deal on the hook, only to find out your investor won’t respond. To avoid that, make sure your cash buyers are highly respected and active in their communities.

Then, check out our guide on how to find cash buyers for your next wholesale deal.

Step #3: Get in front of motivated sellers.

When you know what you’re looking for — and you have a roster of cash buyers ready to go — it’s time to start finding great deals.

To do that, you want to get in front of motivated sellers who are willing to work with you.

While many new investors make this out to be the hardest part of the process, that isn’t actually true.

People every day are motivated to sell their homes for a wide variety of reasons… from divorce, to job transfer, to foreclosure, to inheriting the property & not wanting it, tax problems, you name it.

These sellers are looking for someone to come along and help them get connected with an investor who wants to pay cash for their property. That’s where you come in.

To help you understand what a motivated seller looks like, check out the video below:

Then, read our guide on 10 proven ways to find motivated sellers.

After you know what a motivated seller looks like, you’ll want to start contacting them.

One of THE best strategies you can use is direct mail marketing. (We’ve built our entire business around sending high-converting, highly-profitable direct mail campaigns.)

With direct mail, you can use a tool like Propstream to start building lists of motivated sellers.

Then, send out highly-targeted postcards and letters, letting them know that you’re interested in talking about potentially purchasing their property.

Here’s an example of a great campaign to send:

With the Americana campaign (pictured above), your prospects will start collecting the postcards you send them then, when the time is right, will contact you to have a conversation.

To learn more about getting direct mail right, check out our guide on 10 direct mail tips for wholesalers.

Step #4: Put the property under contract.

Now, by the time you get to this step, it means everything’s going right.

You know what to look for and what makes a great property. You have a list of cash buyers ready to pick up your contracts. And you have motivated sellers looking to get in conversation.

That means you’ll need to start learning how to get the property under contract.

The key here is making sure you’re starting with the right contracts — you want an agreement that can be assigned to another investor.

There’s a few key clauses that you’ll want to ensure are included but, rather than getting into the nitty gritty in this guide, check out our other guide on real estate wholesaling contracts.

It will give you everything you need (plus a way to download our example agreements) so you can get up and running as quickly as possible.

Step #5: Find your cash buyer.

After you have negotiated terms that work for your seller and you know there’s enough meat left on the bones for your investor, it’s time to start contacting them.

When you start reaching out, make sure you’re starting with the cash buyers you know already buy in the area where the property you’ve contracted is located.

This will increase the chances they act quickly and purchase the contract from you.

Outside of that, you want to ensure you’re giving them the perks of the property, the due diligence you’ve performed, any other details that would make it attractive to them.

You can also host a property walkthrough or showcase detailed photos that you’ve collected.

Then, engage with people who have shown a level of interest, let them know the assignment fee on the contract, and then get a commitment from them to purchase the contract from you.

Step #6: Assign the contract.

The next step in getting your first wholesale deal done is assigning the contract.

This is often as simple as letting your escrow company or closing attorney know the terms of the deal, what you’ve contracted the property for, your assignment fee, and the end purchase price.

Which is where some new wholesalers make a mistake.

To ensure that someone will want to purchase the contract from you, you need to make sure you’re asking a realistic price for the property.

For instance, if you’ve contracted it for $100,000, your seller wants $90,000, and the property is only worth $110,000, chances are high that a buyer isn’t going to want the deal.

There just isn’t enough meat on the bones for them.

In order to expedite flipping your contracts, you want to make sure it’s still a deal for your buyer.

To learn more about this process, check out our guide on wholesaling assignment fees.

Step #7: Get the deal closed.

Now, for the final step — the step where you get paid for your effort: closing the deal.

Once you have a cash buyer who’s engaged and ready to purchase the property, there’s two ways you can get the deal done.

You can either assign the contract (most common) or double close.

As a general rule of thumb, if you want to get the deal done quickly, assign the contract. It’s significantly easier than a double close.

However, if you’re making a bunch of money on the deal and want to keep that information private, you’ll need to perform a double close.

With this strategy, you close on the transaction yourself and then you sell your new property to the cash buyer who has expressed interest in it.

Since you’re purchasing the property before reselling it, your original purchase price remains hidden. This is great when you’re making a lot of money — and your cash buyer may push back on your selling price.

The downside to this is that it tends to be more expensive than just assigning the contract. The upside is nobody will know how much you made except your attorney and/or escrow company.

Tips For Finding Your First Wholesale Deal

While the process for finding your first wholesale deal is relatively straightforward — following the steps in this guide — there are a few tips that can make it easier for you to get that deal done.

Tip #1: Stay patient & persistent.

Remember, when you’re learning new skills, you need to remain patient.

The payoff that happens when it all comes together is HUGE but, unfortunately, most people give up right when they’re about to reach the finish line.

In the beginning, you’re going to get told no. You’ll have people tell you to stop contacting them.

But, if you stay patient and persistent, you will get people saying yes — and you will get contracts.

Tip #2: Protect your reputation.

As a wholesaler, the reputation you build for yourself matters more than anything else.

If you start developing a reputation for putting together bad deals, or costing your investors time and money, your cash buyers will simply stop answering the phone when you call.

On the flip side of that, though, if you become known for getting your cash buyers great deals, they’ll be fighting to be the first person you call — and will always answer the phone when you give them a ring.

Don’t ruin your reputation over some quick money.

Tip #3: Automate as much as you can.

In the beginning, you may be strapped for cash and need to get a bit scrappy.

However, as you start getting deals done, don’t just go blow the cash you’ve generated.

Instead, pour that cash back into your business and start automating the process of finding cash buyers, getting into conversations with them, and managing your business operations.

One of the first things that typically gets automated is your lead generation — because once you have a consistent flow of incoming leads, your business becomes incredibly predictable.

And like we’ve mentioned above, direct mail marketing is THE essential backbone of some of today’s most successful real estate businesses — and many of those businesses trust the campaigns we create.

To make sure you get this part right, check out our guide on 10 direct mail tips for new wholesalers.

Then, to make your life even easier, look through our direct mail marketing campaigns so you can get motivated sellers reaching out to you first — INSTEAD of cold calling, door knocking, or driving for dollars.

Take a look at our guide on direct mail templates that have been proven to work in 2024 to learn more.

Spread the Word. Share this post!

Subscribe to our Newsletter

Sign up for news, updates, and more from BPM. It’s time to ZAG!

Scroll to Top
Get 15% OFF today! Handwritten Marketing Subscribe to our newsletter below and get a 15% coupon code for any of our unique handwritten marketing material!