Start increasing your wholesale volume with these tips, covering everything from sourcing deals to finding buyers.
Start increasing your wholesale volume with these tips, covering everything from sourcing deals to finding buyers.
Instead of spending time cold calling and skip tracing, build a network by reaching out to agents, attending events, and contacting listing agents on Redfin to find better deals, learn the process, and save money for ads later.
Cold calling and skip tracing leads can result in deals, but at the cost of countless bad leads and a lot of grunt work. Start building yourself a network of contacts who will send you quality deals that fit what you’re looking for.
Reach out to everyone you know who’s involved in real estate, especially agents, and let them know what you’re looking to buy. If you don’t know anyone, go to wholesaling networking events and get your name and face out there. A single, solid relationship with the right person can lead to a deal a month or more. Look on Redfin for properties that fit your criteria and call the listing agent directly - even if they aren’t open to selling the house at your terms, you can briefly explain what you do and what you’re looking for and partner with them. The more agents sending you deals, the higher volume of pocket listings you can expect to get. The more buyers you know, the clearer your idea of what kinds of deals you need becomes. Grow your network.
Working with an agent on an off-market deal is great, because the homeowner already knows and is happy to work with the agent, and they can act as a liaison in the deal. It lets you learn the ropes now, and it’s a free way to get deals, meaning you can spend that money on advertising later.
Reach out to real estate agents and attend networking events.
Search Redfin for properties and call agents directly.
Work with agents on off-market deals to learn and save money.
Use our calculator to quickly analyze deals, follow the 70% ARV rule, and confidently lock in assignments to start closing and growing.
Your job as a wholesaler is to lock up great deals you know your buyers want. This means having an understanding of generally agreed upon rules, such as the 70% ARV rule. You need to understand how to analyze a deal inside and out, which takes time and practice.
To get you most of the way there now, use our Calculator. It’s what we use to run the numbers on deals from multiple angles, and includes full breakdowns of each number investors care about.
As long as you’re conservative, take it slow with your due diligence, play by the general rules and run each deal through a system like the calculator above, you’ll have a good enough idea to get a deal closed and funded. That means you can start getting assignments and grow.
Learn key rules like the 70% ARV rule to analyze deals effectively.
Run numbers using our Calculator for accurate deal breakdowns.
Take your time with due diligence and follow the rules to close deals and grow.
Use our Purchase Agreement Template to send simple offers, choose a title company that handles assignments, and lock up the deal—transaction coordinators and lawyers will handle the rest.
Once you’re confident you’ve got a solid deal on your hands and you know what acquisition strategy will work best for it, you need to send an offer. If you’re working with an agent, skip the LOI - they get tons of these every day.
Instead, use one of our Purchase Agreement Templates. It’s customizable, has sections for all types of situations and acquisition strategies, and is easy to read and fill out. If the agent really needs you to send a TREC (Texas Real Estate Commission) Purchase Agreement, ask them kindly to draft one for you - it’s part of their job. Remember that you need to select a Title Company and Escrow Officer to include in the contract, meaning you need to have chosen a Title Company that can process assignments. When choosing a Title Company, check out their website, make sure they work with properties in your subject property’s area, and call to confirm that they process assignments. You can simply call and ask them this, and mention that if needed sometimes you assign your deals. Be sure to follow up with the agent or seller until they sign.
Right now you need to get deals locked up. Send the offer, get the deal. Remember that transaction coordinators, title companies and lawyers are being paid to make sure everything adds up in the deal. They’ll fix things. Keep the deal simple, and get your own custom contracts when you have more capital.
Once you have a solid deal, send an offer using our Purchase Agreement Template.
Customize the template, ask the agent for a TREC Purchase Agreement if needed, and select a Title Company that processes assignments.
Focus on locking up the deal and let the title company, TC, and lawyers handle the details.
Open escrow by sending the signed purchase agreement to a title company that handles assignments, pay the EMD, and ensure the title is clear before marketing the deal.
Once you get the deal signed, take a moment to congratulate yourself for getting your first deal under contract! Many wholesalers stop before they get to this point - but it’s not over. Now, you need to work with the TC and Title Company to open escrow.
At this point, once all parties involved have signed the purchase agreement, you can send an email to the title company’s escrow officer to open title with the agreement PDF attached. An example email would look something like this:
Good Afternoon,
Please open escrow for the following property. This is a cash/sub-to/etc transaction and will be assigned.
Joe Smith is our TC.
Seller's Info:
John Seller
Phone: (999) 999-9999
Email: email@example.com
(If you have a second seller, also add their information here)
Jennifer Seller
Phone: (999) 999-9999
Email: email@example.com
Agent:
Stacy Agent
Phone: (999) 999-9999
Email: email@example.com
Thank you.
Once the escrow is opened, the EMD and option are paid, and title ensures everything is free and clear with the property, it’s time for you to begin marketing the deal and finding a buyer. Remember: never market a deal until you have a signed purchase agreement and you’ve worked with a title company to open escrow.
Once the deal is signed, send an email to the title company’s escrow officer to open escrow with the purchase agreement attached.
Include the necessary details, such as transaction type, TC info, and seller/buyer contact details.
After escrow is opened, ensure the EMD and option are paid, and the title is clear before starting to market the deal.
Grow your network of buyers and understand their buyboxes, or work with us to find the buyer to close on your deal.
Now that everything’s in motion and your Close of Escrow date is ticking, it’s time to find a buyer for your deal. Disposition can be just as difficult if not more difficult than acquisition, so expect to put a lot of work in to find someone to close on the deal. You’ll need to send it to everyone you know, grow your network of quality buyers, and coordinate investors walking the property. One of the worst feelings is having to cancel out of a deal because you can’t get a buyer lined up.
So don’t take the chance. Frontdoor has a team of dispo experts that have been closing deals for 3 years. Leverage the curated buyer network we’ve grown all over Texas and send us your deal. We’ll JV with you and find a fee split that works for both of us, while keeping you updated throughout the entire process.
Don’t let dispo slow you down - focus on finding your next deal and learn how to find a buyer along the way by working with us.
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Marco Moya
Head of Sales
Just fill out a 5 minute form and we’ll get back to you within 24 hours on your deal. We can even help you underwrite, and if a deal doesn’t work for us, you’ll get an explanation that helps you learn how to package better investments in the future.
