How to Wholesale Real Estate

How to wholesale real estate can best be demonstrated with a video. While visiting my Dad on Father's Day weekend, I stumbled across a terrific real estate wholesale deal. We were actually driving through some random neighborhoods of Nashville to simply get my daughter to fall asleep and take her afternoon nap. We had no intention of looking for a wholesale deal. That's one of the beautiful things about real estate. Deals are everywhere!

To wholesale real estate, you need to find opportunities that most everyone else overlooks. In the video, you discovered that a neighborhood eyesore could be a dynamite wholesale real estate deal. Builders were tearing down old, dilapidated houses and rebuilding very nice homes. This is one of the most profitable wholesale niches. The key is to locate neighborhoods where the lots are about as valuable as the older houses. This usually occurs in areas where $1M+ homes can be built.

Wholesaling real estate creates fast cash. You can make quick money by flipping or assigning your interest in a deal to another buyer. The most likely buyer of wholesale real estate is an investor, or in the case of the above video, a builder. You can make even faster profits if the buyer is paying all cash. Waiting around for an investor buyer to get a loan can be frustrating.

One of the best ways to find wholesales is to drive around. When you know what you are looking for, you can spot opportunities that most other people overlook. In the video, you saw that I found a vacant, dilapidated house just a few homes away from new built homes. The only way to have learned about this deal was to have driven past it.

There are diamonds in your own backyard and real estate wholesale deals all around you. Watch that video again. That is how to wholesale real estate.


  1. Hi Phil!
    Thanks for all the info, I am so fascinated with all your videos, I just bought a property, it’s in a bad condition, how I am gonna get on hold of builders? Thank you in advance

  2. Pauline Daniels says

    I want to buy my first home I need a place to stay like yesterday any advice no down payment

  3. Hello. I am brand new to Real Estate. I’m s Medical Assistant by trade, but am looking for more sources of income. Is this video for me??

  4. Great info! Short and sweet but powerful. Some teacher mentors make it complicated.

  5. Gil Beitia says

    Hey Phil, I’m a single dad and I would love to have you as a mentor on my side, I live in Modesto ca, and I don’t have a lot of money right now and I have twins that are autistic, I want to leave my job and spend more time with my kid’s.

  6. Khanyisa Vivian Chauke says

    Hey Phil
    Seeking an advice:
    i have a relative who rented a house from the owner with an agreement that the house will become theirs after the full payment,so now my relative is behind on payment and the owner wants the house…my question to you is how can i help my relative out of this situation

    • Freedom Mentor says

      Your relative would just need to bring the payments current and protect his interest in the binding agreement he signed.

  7. Phil
    There is a house I pass every Sunday morning on our way to church that is in total disrepair and all the surrounding homes are beautiful. But , people are still living in a house. WhAt would be the best strategy in that circumstance? Thanks. Paul

    • Hi Paul! Your story is VERY encouraging. I would like to repeat the positive aspects; ‘ have enough of the negative ones! I am wondering; Do You think the most important part of R-E investing is putting together a “team” of people that I could call upon to advise me?…i.e. R-E lawyers, closing / title companies, and Realtor friends etc.

      I have “seen” many potential opportunities, but I need HELP in starting! Please HELP! I am completing your course (for the second time)…just need HELP in getting started.

      BTW I would like to congratulate you for giving MANY people HOPE…God bless you in ALL that you do.

  8. How do you know you are going to make some money in the vacant house if you don’t know what the builder is willing to pay for it? plus the are several more houses the builder can wait to negotiate.

  9. Hi Phil
    really appreciated that every thing you do it’s very informative

  10. Good experience.

  11. Great video! Awesome idea of flipping the property to the builder!!

  12. Wallace Paul says

    SOS I’m ready to get going. Please contact me.

  13. I spoke to a Realtor here in the state of Washington. I told him that I wanted to start Wholesaling and he didn’t know what I was talking about. I then explained the process as I was basically the middle man finding a seller and getting the property under contract and then finding a buyer to assign the contract to at a Title company. He told me it was illegal to do A B C closings in the State of Washington.

    Is that true Phil?


    • Phil Pustejovsky says

      If you know what you are doing, you can do all kinds of creative deals and creative closings in Washington. But you were asking someone who doesn’t know what they are talking about.

  14. How do people with little or no money get started?

  15. this is exactly what I want to do…and I can see the Diamonds in my own backyard…
    I believe I have 1 on each side of my house now..
    both are Vacant/ grass unkept in the back; and across the road.
    they are building New homes…
    Love it…

  16. Hello Phil,
    I live in CA can I do and or assigns here?
    Thank you,
    Jim in L.A

  17. Phil,
    Can you do a follow up to this video. The next step – after finding the owner and then trying to wholesale
    the property to the builder,


  18. Hi Phil,

    Why wouldn’t the owner go to the builders themselves?

    I am assuming you must make sure not to let the owner know what your intentions really are.

    • Phil Pustejovsky says

      Once you get it under contract and record the appropriate affidavit, you lock yourself in the right position and even if the owner goes directly to the builder, you can’t be cut out.

  19. Hey Phil great video.

  20. Hi Phil, can you tell me how you know for sure the property is vacant? Thanks!

    • Phil Pustejovsky says

      Check the electric meter and poke your head inside the window to make sure no one is living there without utilities on.

  21. AA Acquisitions says

    I have found 3 properties and 3 acres of land that the owner lives on. I have found out how to increase the rents to 30,000 a year on each 4 bedroom. These houses need complete rehabs of 50,000 to bring them to these requirements. To get financial assistance in this project does it have enough merrit to considere this as a good investment. The profit margins are
    very good and the renters are people on fixed incomes for there pensions. The
    total monthly income is 12,000 to 15,000 per month. Do you have any ideas on getting this start up business going and increase the total number of houses to 10. Please give me your thought on this.

    • Phil Pustejovsky says

      The rents sound WAY too high. A 4 bedroom single family home renting for $5,000 per month?

  22. How do I become a Bird-dog?????

  23. Roy Hagerman says

    Hey Phil, what an outstanding wholesale program to put into play in some of these older neighborhoods, especially where I live!! Is there anyway you might be able to put a percentage(ballpark, of course) of purchase cost, on the flipping of these properties?? I’m just interested in knowing the kind of profit that could be made, with this type of wholesaling!! Great potential, no matter what!! Thanx for the insight!!

    • Phil Pustejovsky says

      It all depends on what you can negotiate but you should be able to make 10-15% of the sales price in most cases.

  24. Virginia Renaud says

    I don’t think you like to rehab houses, but there is a certain section in town where some houses are for sale for around $20,000. I looked at them on the internet. They were built in the fifties. They have no AC. They are atrocious. The are in a poor section of town. I have not had my son-in-law, who is a contractor, and has built houses, look at them to see if they are worth bothering with.
    I have to find out if the city, is interested in improving that area of town. If they are, would it be possible to see if I could get a low interest loan from the municipality, the state and federal government?

    • Phil Pustejovsky says

      I have several rehabs going right now. You are certainly encouraged to research if their are any special renovation programs to help revitalize an area of town. Those programs usually require you to bring considerable cash to the project and it may be easier to go non-government in funding the deals you do.

  25. Hey, Phil great stuff. You have all these so called real estate gurus/ wholesaling experts teaching about all of these distressed properties that you can get on the cheap in these C to D areas and wholesale it to buy & hold investors or fix & flip guys and make a small spread in between that everybody is then trying to target these kind of deals and then get frustrated when they don’t come to fruition. Reason being you cant negotiate the price that leaves you enough spread, competition, and other factors not in your control. Lets face it the market is picking up a bit and the hype is spreading where people are not as desperate to sell there house as they might have been just 2-3 years ago. Now with the housing market recovering in certain areas faster than others we have a new type of cash buyer the BUILDER. They are DESPERATE for these deals and they are buying up with CASH by the numbers. We as wholesalers have positioned ourselves in the middle of it all. The goal is simple find deals in areas that fit there criteria in these A to B high end areas and these builders will pay you that spread that you are seeking because YOU know what they really want is the LAND not the house. Believe me they will pay….. Cause after they finish building it, may it be a duplex multi family or just luxury single family homes they will make their money significantly after selling it. There is enough money on the table for everyone. Phil you nailed it with this video. Would love to discuss this more in detail with you and I admire what you do for the everyday individual whose is seeking financial independence and a better way of life. Real Estate is that vehicle that can make it happen for all of you out there. You just need the right mentor to show you the way and Phil is definitely that guy. Much respect for what you do. Maybe we can put some deals together. All the best. Gavy

  26. HapsaiGeorge says

    Thanks a lot ………..
    i really love this video

  27. Alfonso Clarke says

    All the above are true, except nobody talks about the details, like what format did you use, sample,example forms for the deal/clauses etc.

  28. Hi Phil,

    I always enjoy your videos. It’s nice that you finally got out from in front of the white board.

    In this video you implied that you’d wholesale the acquisition to one of the local developers. How you’d get them to purchase your contract is another whole other “tweetable” topic. This would probably not be a wholesale deal to any investor other than the developer. Wouldn’t you agree?

    Perhaps it would be possible to JV with the developer as the acquisition partner. You’d make more than assignment fees that way.

    Oh well, it was a short “teaser” vid. I’m sure you’ll provide us with a more comprehensive video on this topic later, right? You are da man!

    Thanks Phil

    • Phil Pustejovsky says

      It’s not complicated. You simply assign your equitable interest to the developer. And GOOD LUCK getting the developer to make you a principal in the deal for simply finding it. If you don’t know what you’re doing, chances are, the developer will try to get you out of the way and buy directly from the original seller.

  29. Johnny Rodriguez says

    Thank you Phil for this kind of training video. I enjoy all that I have seen as far from your website, can’t wait to hear from someone in the mentoring dept, I sent application . Thank you and God bless you and the family.

  30. Great video Phil. l Would love to get my hands on the information to wholesale to a builder.

  31. Bill Gershenfeld says

    Hi Phil,
    I agree!!! One of the greatest aspects of RE is deals are everywhere. I cant drive anywhere without seeing homes and saying to my wife and kids “that’s my next home”. Great video. Did you end up closing that deal?

  32. Kyle Meadows says


    Are companies like Lane Guide good to use to find the owners of properties like that?

    • Phil Pustejovsky says

      Nope. The Lane Guide is a service for mortgage brokers to get access to lenders. The best way to find those types of deals, is good, ol’ fashioned, driving around.

  33. AkeemSims says

    This is a great video & example that deals are all over you just need to recognize them. The timing of the deal is very important, had they not been building at the time,the potential profit margin may not have been the same. I’m just beginning & have a peaked interest in wholesaling strategies!! Thanks for the motivation

  34. Adam Borton says


    Great video. Detroit is a gold mine for deals like that. Once I get enough capital I hope to buy large sections of the suburbs and give the city a nice face lift with the help of the community.

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