Strategy
Wholesale Real Estate
The practice of contracting a distressed property at a discount and assigning the contract to a cash buyer for a fee.
Definition
Wholesaling is a real estate investment strategy where the wholesaler contracts a property from a motivated seller, then sells or assigns the contract to a cash buyer (typically an investor) for an assignment fee. The wholesaler never takes title to the property — they profit from the spread between the contract price and the assignment price. It's how most full-time investors build their deal pipeline in Baltimore.
Example
Wholesaler contracts a vacant Dundalk rowhome at $85K, assigns the contract to a flipper for $95K. Wholesaler earns $10K assignment fee, never owns the property.
Related terms
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