How to Reverse Wholesale

Wholesaling is a common way for beginners in the house flipping community to start out. The great thing about wholesaling is that you don't usually have to spend any of your own money.Instead, you find a property and put it under contract. Then, you find an investor who closes in your place. You don't have to pay for anything or deal with the rehab like other house flipping avenues.Unfortunately, if you can't find a buyer, you could run into trouble. Usually the time period between putting the house under contract and closing is very short, so if there's no one to close in your place, you'll have to pay for the property out of your own pocket.There is a solution to this problem though, and it's called "reverse wholesaling".The idea is to work backwards and to find a buyer before you put the property under contract, and before you even find the house in the first place.


  1. Image titled Reverse Wholesale Step 1
    Assemble A Buyer's List. These buyers are typically people who frequently invest in real estate, like fix and flippers and landlords who rent out properties. The best way to find these people is by networking. Try going to places like REIA meetings and trading some business cards. Once you have a solid list assembled, start contacting each person individually.
  2. Image titled Reverse Wholesale Step 2
    Choose An Investor To Work With. Eventually you will find someone who is interested in working with you, and you can start to build a rapport. You will find out exactly what types of properties they are interested in-- what size, what location, what price range, and any intangibles that they might want. Then you will agree on a set wholesaler's fee to be rewarded after the contract is exchange.
  3. Image titled Reverse Wholesale Step 3
    Find The Right Property. You will go out searching for exactly what the investor wants. This often makes the process easier, because you don't have to guess what the people from you buyers list are looking for, like you would in a traditional wholesale. This does make your selection a bit narrower, however.
  4. Image titled Reverse Wholesale Step 4
    Put In Under Contract And Present It To The Investor. Once you find the property that meets all of the predetermined criteria, make sure you put it under contract. If you fail to do this before present the property to the investor, he or she could cut you out of the deal and go straight to the seller. If you did everything correctly, the buyer should buy the contract from you, giving you your wholesaler's fee, and then close in your place.
  5. Image titled Reverse Wholesale Step 5
    If All Else Fails, Return To The Buyer's List. At the odd chance that the investor is not interested in the contract that you've selected for him, you'll need to find a replacement buyer. If this happens, don't worry. You've essentially returned to a traditional wholesale. Just send out an email notifying the people on your buyer's list about your property until one bites.


  • Make sure that both you AND the investor will profit from the property you select. If the buyer doesn't profit, you don't profit.


  • Always remember to never buy a property for more than 70% of the ARV, or "after repair value", minus your wholesaler's fee.

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Categories: Purchasing