Wholesaling is the practice of putting a property under contract at a price low enough that another buyer will pay you for the right to take your place. You never own the house. You control it contractually, then sell that control. Done correctly it is a marketing and underwriting business, not a real estate ownership business.
The five-step flow
- 1Generate leads from motivated sellers (probate, tax delinquency, code violations, tired landlords, pre-foreclosure, driving for dollars).
- 2Underwrite the deal: establish ARV from comps, estimate repairs, then back into your maximum allowable offer (MAO).
- 3Get it under contract with an assignable purchase agreement and an inspection/due-diligence period.
- 4Market the contract to a vetted cash buyer list and collect proof of funds plus a non-refundable earnest money deposit.
- 5Assign the contract at closing (or double close) and get paid your assignment fee by the title company.
The math that makes it work
Most cash buyers in New York markets like Rochester, Buffalo, and Syracuse underwrite to roughly 70–75% of ARV minus repairs. That is your ceiling, not your target.
| Line item | Example |
|---|---|
| ARV (after repair value) | $165,000 |
| Buyer's target (70%) | $115,500 |
| Less repairs | -$34,000 |
| Buyer's max price | $81,500 |
| Your assignment fee | $8,000 |
| Your max offer to seller | $73,500 |
If your fee only works when the buyer accepts 80%+ of ARV, you do not have a deal — you have a listing.
Contract language that matters
- "and/or assigns" after your name as buyer, so the contract is transferable.
- A due-diligence or inspection period (7–14 days) that lets you exit if your numbers are wrong.
- Earnest money small enough to risk but large enough to be credible ($500–$1,000 is common upstate).
- The right to market the property and show it to your buyer and contractors.
Disclosure and licensing
You are selling a contract, not brokering real estate. Say so — in writing — to both sides. Disclose that you are the buyer, that you intend to assign, and that you expect to profit. Several states have tightened wholesaling rules in the last few years, so confirm current requirements with a local real estate attorney before you scale volume.
Where deals actually get sold
Your fee is only as reliable as your buyer list. Serious buyers want the address, the ARV basis, an honest repair scope, photos of the ugly parts, and access. Marketplaces like RehabFlow exist so you are not rebuilding that list one Facebook group at a time.
- 1Post the deal with real numbers and real photos.
- 2Answer the first serious inquiry within an hour — speed is the whole edge.
- 3Collect proof of funds before you give access.
- 4Send everything to title the same day the assignment is signed.
Browse live off-market New York deals, or list one and get it in front of verified cash buyers.