Wholesaling Glossary

The Real Estate Wholesaling Glossary

Plain-English definitions of the terms every wholesaler needs, from valuation and contracts to lead generation and disposition. Built by the team that runs these systems for operators every day.

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Each glossary page explains the definition, shows where the term appears in a wholesale operation, and links back to related guides, tools, and services.

Compliance

Compliance terms

1 entries

Do Not Call (DNC) Do Not Call rules restrict certain telemarketing calls to numbers on federal or state DNC lists. Wholesalers running outbound campaigns need suppression and compliance processes.
Contracts & Deal Structure

Contracts & Deal Structure terms

11 entries

And/or Assigns And/or assigns is contract language showing that the buyer may transfer their rights in the purchase agreement to another buyer. Assignment of Contract An assignment of contract is the most common wholesale exit: the wholesaler signs a purchase agreement with a seller, then transfers (assigns) their rights in that contract to an end buyer for an assignment fee. Clear Title Clear title means ownership can transfer without unresolved liens, claims, or defects that would block or cloud the sale. Double Close A double close (or double closing) is when a wholesaler actually buys the property and then resells it to the end buyer in two separate, often same-day, transactions, keeping the spread between the two prices. Due Diligence Due diligence is the investigation a buyer performs before fully committing to a purchase, including condition, title, value, repairs, and exit strategy. Earnest Money Deposit (EMD) An earnest money deposit (EMD) is a good-faith payment a buyer puts down when signing a purchase contract, showing the seller the offer is serious. It is typically held in escrow and applied at closing. Inspection Period An inspection period is the contract window that allows the buyer to inspect the property and cancel under agreed terms before the deadline. Novation A novation replaces an original contract with a new agreement, often allowing an investor to market the property differently than a simple assignment would. Title Company A title company handles escrow, title search, closing documents, and disbursements so the seller, buyer, and wholesaler can close cleanly. Wholesale Contract A wholesale contract is the purchase agreement between the seller and wholesaler that gives the wholesaler control of the deal before assignment or resale. Wholesale Fee The wholesale fee, also called the assignment fee, is the wholesaler's profit on a deal: the difference between the price under contract with the seller and the price the end buyer pays, collected at closing.
Disposition

Disposition terms

6 entries

Buyer Buy Box A buyer buy box is the set of criteria a cash buyer uses to decide what deals they want, including location, price, property type, repairs, and exit strategy. Buyers List A buyers list is a database of cash buyers and investors who may purchase wholesale deals. Quality matters more than raw list size. Cash Buyer A cash buyer is an investor who purchases properties without traditional financing and can close quickly. Cash buyers are the end buyers wholesalers assign or sell their contracts to. Disposition Manager A disposition manager sells or assigns contracted deals to cash buyers by matching each property to the right buyer list and managing the closing path. Joint Venture (JV) A joint venture in wholesaling is a collaboration where two parties share roles and split the fee, often because one has the seller contract and the other has buyers. Wholetail Wholetail is a hybrid strategy where an investor buys a discounted property, makes light cleanup or repairs, and resells it quickly, often on-market.
Funding

Funding terms

2 entries

Proof of Funds (POF) Proof of funds (POF) is documentation, usually a bank statement or a lender letter, showing that a buyer has the cash available to complete a purchase. Sellers and agents often require it before accepting an offer. Transactional Funding Transactional funding is short-term capital used to complete the first leg of a double close, usually repaid when the resale closes shortly afterward.
Lead Generation

Lead Generation terms

11 entries

Absentee Owner An absentee owner owns a property they do not personally live in, often because it is rented, inherited, vacant, or held as an investment. Wholesalers target absentee owners because distance and deferred management can create selling motivation. Distressed Property A distressed property shows physical, financial, legal, or ownership problems that may make a traditional retail sale difficult. Wholesalers look for distress because it can create discount opportunities. Driving for Dollars Driving for dollars is the practice of physically driving through neighborhoods to spot distressed or neglected properties, recording their addresses, and turning them into a targeted list of potential motivated sellers. High-Equity List A high-equity list contains owners whose estimated property value is much higher than their mortgage balance. Equity gives a seller room to accept a discounted cash offer. List Stacking List stacking is the practice of combining multiple lead lists and prioritizing properties that appear on several lists at once. More overlap usually means stronger motivation signals. Motivated Seller A motivated seller is a property owner with a pressing reason to sell quickly, often for less than full market price. Finding and qualifying motivated sellers is the core of wholesale lead generation. Pre-Foreclosure Pre-foreclosure is the period after a borrower has fallen behind and received a default notice, but before the property is sold at foreclosure auction. It can signal urgency, but outreach must be handled with care. Probate Lead A probate lead is a property connected to an estate after an owner has died. Heirs or personal representatives may consider selling if they do not want to maintain, repair, or divide the property. Skip Tracing Skip tracing is the process of finding accurate, current contact information, especially phone numbers, for a property owner so a wholesaler can actually reach them to discuss buying their property. Tired Landlord A tired landlord is a rental-property owner who may want to sell because of repairs, vacancies, tenant issues, management fatigue, or weaker cash flow. Vacant Property A vacant property is not currently occupied. Vacancy can signal cost, risk, or neglect, making it a useful lead source for wholesalers.
Sales Process

Sales Process terms

4 entries

Call Disposition A call disposition is the outcome label assigned after a call, such as no answer, wrong number, not interested, follow up, warm lead, or appointment set. Lead Qualifying Lead qualifying is the process of deciding whether a seller conversation has enough motivation, equity, condition detail, and timeline to become a real wholesale opportunity. Seller Motivation Seller motivation is the reason an owner may accept a cash offer below retail value. It is the difference between a conversation and a real wholesale lead. Speed to Lead Speed to lead is how quickly your team responds after a seller shows interest. Faster response improves contact rates and reduces the chance a competitor wins the conversation.
SMS Marketing

SMS Marketing terms

1 entries

A2P 10DLC A2P 10DLC is the U.S. carrier registration system for application-to-person text messaging from local 10-digit numbers. Real estate SMS campaigns need it to reduce filtering risk.
VA Roles

VA Roles terms

2 entries

Acquisitions Manager An acquisitions manager negotiates with motivated sellers, analyzes deals, makes offers, and works to get properties under contract. Lead Manager A lead manager is the person who follows up with seller leads, keeps CRM records clean, confirms motivation, and moves qualified opportunities to acquisitions.
Valuation

Valuation terms

9 entries

70 Percent Rule The 70 percent rule is a quick investor formula that estimates a maximum offer as 70% of ARV minus repairs and the wholesaler fee. After Repair Value (ARV) After Repair Value (ARV) is the estimated market value a property will be worth once it has been fully repaired and renovated. It is the anchor number wholesalers and investors use to back into a maximum offer. As-Is Value As-is value is what a property is worth in its current condition, before repairs or improvements are completed. Comparable Sales (Comps) Comparable sales, or comps, are recently sold properties similar to the subject property in location, size, age, and condition. Wholesalers use comps to establish a defensible ARV. Comps Radius Comps radius is the geographic distance around a subject property used to select comparable sales for ARV analysis. Equity Equity is the difference between a property estimated value and the debt owed against it. Higher equity gives more room for discounted offers. Maximum Allowable Offer (MAO) Maximum Allowable Offer (MAO) is the highest price a wholesaler or investor can offer on a property and still leave enough margin for repairs, the end buyer's profit, and their own fee. Rehab Budget A rehab budget is the planned repair and renovation spend for a property, usually estimated before a cash buyer decides whether a deal works. Repair Estimate A repair estimate is the projected cost to bring a distressed property to the condition assumed in the ARV and buyer exit plan.

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Glossary Library

What Is ARV (After Repair Value)? Definition & How to Calculate What Is MAO (Maximum Allowable Offer)? Formula & Example What Are Comps (Comparable Sales) in Real Estate? What Is an Assignment of Contract in Wholesaling? What Is a Double Close in Wholesaling? What Is a Wholesale Fee (Assignment Fee)? What Is an Earnest Money Deposit (EMD) in Wholesaling? What Is a Motivated Seller in Real Estate Wholesaling? What Is Skip Tracing in Real Estate Wholesaling? What Is Driving for Dollars in Real Estate? What Is a Cash Buyer in Wholesaling? What Is Proof of Funds (POF) in Real Estate? What Is Absentee Owner in Real Estate Wholesaling? What Is Pre-Foreclosure in Real Estate Wholesaling? What Is Probate Lead in Real Estate Wholesaling? What Is Tired Landlord in Real Estate Wholesaling? What Is High-Equity List in Real Estate Wholesaling? What Is Distressed Property in Real Estate Wholesaling? What Is Vacant Property in Real Estate Wholesaling? What Is List Stacking in Real Estate Wholesaling? What Is Lead Qualifying in Real Estate Wholesaling? What Is Seller Motivation in Real Estate Wholesaling? What Is Call Disposition in Real Estate Wholesaling? What Is Speed to Lead in Real Estate Wholesaling? What Is Lead Manager in Real Estate Wholesaling? What Is Acquisitions Manager in Real Estate Wholesaling? What Is Disposition Manager in Real Estate Wholesaling? What Is Buyer Buy Box in Real Estate Wholesaling? What Is Buyers List in Real Estate Wholesaling? What Is Transactional Funding in Real Estate Wholesaling? What Is Inspection Period in Real Estate Wholesaling? What Is Due Diligence in Real Estate Wholesaling? What Is Title Company in Real Estate Wholesaling? What Is Clear Title in Real Estate Wholesaling? What Is 70 Percent Rule in Real Estate Wholesaling? What Is Repair Estimate in Real Estate Wholesaling? What Is As-Is Value in Real Estate Wholesaling? What Is Rehab Budget in Real Estate Wholesaling? What Is Equity in Real Estate Wholesaling? What Is Comps Radius in Real Estate Wholesaling? What Is Wholesale Contract in Real Estate Wholesaling? What Is And/or Assigns in Real Estate Wholesaling? What Is Novation in Real Estate Wholesaling? What Is Wholetail in Real Estate Wholesaling? What Is Joint Venture (JV) in Real Estate Wholesaling? What Is A2P 10DLC in Real Estate Wholesaling? What Is Do Not Call (DNC) in Real Estate Wholesaling?