You wholesale real estate with no money by getting a property under contract at a discount, then assigning that contract to a cash buyer for a fee — without ever buying the property yourself. Your "capital" is hustle, not cash. Here's the exact step-by-step, plus the honest caveats most guides skip.
This is education, not legal advice. Whether you can wholesale without a real estate license depends on your state, and several states changed the rules in 2024–2025 — see Is Wholesaling Real Estate Legal? and talk to a local real estate attorney first.
The honest version, up front
"No money down" is real, but it's not "no effort" and rarely "no dollars at all." You typically still need a small earnest-money deposit (sometimes as little as $10–$100 on the right contract), a phone, and a lot of consistent work. What you don't need is the full purchase price — because you never actually buy the house. You control it with a contract and pass that control to someone who has the cash.
The 6-step wholesale loop
1. Find a motivated seller
Off-market deals come from owners with a problem — distress, absentee/tired landlords, inherited (probate) property, vacancy. Free methods: driving for dollars and pulling public records to find absentee owners. This is the hardest part; everything else is mechanical.
2. Run the numbers
Before you make an offer, you need two figures: the After-Repair Value (ARV) — what the home is worth fixed up — and the repair cost. Learn to calculate ARV from comps, then apply the 70% rule to find your maximum offer. As a wholesaler, subtract your fee too, so your buyer still has room to profit.
3. Get it under contract
You sign a purchase agreement with the seller that includes an assignment clause (so you can transfer it) and an inspection/due-diligence contingency (your exit if the deal doesn't pencil). This is the document that gives you something to sell. Learn what's in it in The Wholesale Real Estate Contract, Explained.
4. Line up a cash buyer
While under contract, you market the deal to your buyers list — local flippers and landlords who pay cash and close fast. No list yet? Build one from public records (recent cash purchases), local investor meetups, and online investor groups.
5. Assign the contract
You sign an assignment agreement transferring your rights to the buyer for an assignment fee (your profit). The buyer steps into your shoes and closes with the seller. You never take title. If a deal can't be assigned, the alternative is a double close — two back-to-back closings, sometimes funded by short-term "transactional funding" — which keeps you cash-light but costs fees.
6. Close and get paid
The title company or closing attorney handles the paperwork, the buyer funds the purchase, and your assignment fee is paid at closing. Then you run it back.
Where the "no money" really comes from
- You don't buy the house — you sell a contract, so no down payment or loan.
- Small or creative earnest money — negotiate a low deposit; some assignable contracts allow nominal EM.
- Transactional funding — for double closes, short-term lenders front the purchase for hours, for a fee. Not free, but no cash of yours.
- Partnering — bring the deal, let a funded partner bring the money, split the profit.
The honest risks
- Legality varies by state. Marketing or assigning a contract without a license is restricted in a growing number of states. This is the #1 thing to get right.
- Contract quality matters. A weak contract with no exit can leave you on the hook. Use attorney-reviewed, state-specific forms.
- Reputation is everything. Locking up a house you can't deliver, or misleading a seller, ends careers fast. Only contract what you can actually assign, and be straight with sellers about what you do.
The come-up move
Wholesaling is the on-ramp precisely because it swaps cash for effort. The skills that make it work — finding motivated sellers and running the numbers — are exactly the skills you'll use on every rung above it.
Start free on Squatters: learn the whole loop step by step, then case a real off-market deal with our tools. Squat it. Fund it. Own it. 🦝