How Real Estate Wholesaling Works in Texas
Wholesaling means putting a property under contract and selling your position in that contract to a cash buyer for a fee, usually by assignment or a double close.
How a wholesale deal works
- Find a motivated seller and agree on a price.
- Sign a purchase contract that allows assignment.
- Market the contract to cash buyers with the property details and your numbers.
- Assign the contract to the buyer, who closes with the seller; your assignment fee is paid at closing.
Price it for the buyer
Cash buyers work backward from the ARV with the 70% rule. Your contract price plus your fee has to fit under their maximum, or the deal won't sell. Use honest comps and a real rehab estimate; buyers remember who sent them bad numbers.
Texas rules to know
Texas law allows a person to sell their interest in a contract without a real estate license, but requires written disclosure to the buyer that you are selling only your interest in a contract and do not own the property, and rules continue to change. Marketing the property itself rather than the contract can require a license.
This guide is general information, not legal advice. Talk to a Texas real estate attorney about your contracts and disclosures before you start.
Sending deals to The Property Plug
We buy and assign properties across Houston and answer every deal within one business day. Run the numbers in the ARV calculator and click Send us this deal.