CalculateRealEstateROI

Strategy

Wholesaling

Putting distressed properties under contract and assigning the contract to an end-buyer for an assignment fee.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Deal flow

Direct mail, driving for dollars, cold calling absentee owners.

Assignment

Contract clause permits transfer to end-buyer for fee, typically $5–25k.

Examples

  • $80k contract assigned to investor for $10k fee, who closes and renovates.

Practical applications

  • Capital-light entry to investing.
  • Building buyer relationships for future deals.

Common mistakes

  • Wholesaling without verifying state legality.
  • Misrepresenting role to seller.