Demystifying Traditional Wholesaling: A Step-by-Step Guide 

Learn how to navigate the process of traditional wholesaling in real estate with our comprehensive step-by-step guide. 

a street with houses on it

The Process of Traditional Wholesaling: 

Traditional wholesaling is a time-tested strategy that forms the cornerstone of many successful real estate careers. If you're new to the world of real estate investing, understanding the process of traditional wholesaling can provide you with a solid foundation for building your journey towards financial freedom. In this article, we'll break down the step-by-step process of traditional wholesaling and shed light on how it can pave the way for your success in the industry. 

Step 1: Identifying Potential Properties: 

The first crucial step in traditional wholesaling involves identifying distressed or motivated seller properties. These are properties that are often in need of repair or are facing financial challenges. Engage in thorough market research, attend auctions, and network with agents to spot properties with potential.

Step 2: Negotiating with Sellers: 

Once you've identified a potential property, it's time to negotiate with the seller. Effective negotiation skills are key here, as your goal is to secure the property at a price that allows room for a profit margin when you pass it on to another investor.

Step 3: Entering into a Purchase Contract: 

Upon successful negotiation, you'll enter into a purchase contract with the seller. This contract gives you the right to control the property for a specified period, usually through a method known as "assignment."

Step 4: Finding a Cash Buyer: 

With the property under contract, your next task is to find a cash buyer who's interested in purchasing the property for a profit. These cash buyers are often real estate investors looking for properties to add to their portfolios.

Step 5: Assigning the Contract: 

In traditional wholesaling, you don't actually close on the property yourself. Instead, you assign the contract to your cash buyer. This means that your buyer steps into your shoes and completes the transaction while paying you an assignment fee.

Step 6: Collecting Your Assignment Fee: 

As the deal closes, you collect your assignment fee – the difference between the price at which you secured the property and the price at which your buyer purchased it. This fee is your profit for facilitating the transaction.


Traditional wholesaling offers an entry point into real estate investing that doesn't require substantial capital or extensive experience. By mastering the process, you can tap into a reliable method for generating profits while helping distressed sellers and fellow investors alike. Remember, effective communication, negotiation skills, and building a network of motivated sellers and cash buyers are key elements for succeeding in the traditional wholesaling journey.

Whether you're a newcomer to the real estate arena or an experienced investor, traditional wholesaling can be a powerful tool in your investment arsenal. By following this step-by-step guide, you can confidently embark on the path of traditional wholesaling and work towards achieving your investment goals.