A

ARV (After-Repair Value) — The estimated market value of a property after all repairs and renovations are complete. The foundation of every wholesale deal analysis.

Assignment of Contract — The transfer of a buyer's rights in a purchase agreement to a third party (the end buyer) in exchange for an assignment fee.

Assignment Fee — The wholesaler's profit — the amount paid by the end buyer for the right to purchase the property under the wholesaler's contracted terms.

C

Cash Buyer — An investor who purchases properties without mortgage financing, enabling fast closings. The primary end buyer in most wholesale transactions.

Comps (Comparables) — Recent sales of similar properties used to estimate ARV. The accuracy of your comps directly determines the accuracy of your deal analysis.

Contract — The purchase agreement signed between the wholesaler and the motivated seller establishing the right to purchase at a specific price.

D

Double Closing — A wholesale closing method involving two separate transactions: the wholesaler buys from the seller and immediately sells to the end buyer. The wholesaler briefly holds title between closings.

Driving for Dollars — The practice of physically driving neighborhoods to identify distressed properties whose owners may be motivated to sell.

Due Diligence Period — The inspection window written into the purchase contract during which the buyer (wholesaler) can investigate the property and back out without losing earnest money.

E

Earnest Money — A deposit made by the wholesaler when signing a purchase agreement, demonstrating good faith. Typically $500–$2,500 in wholesale transactions.

Equitable Interest — The legal interest a buyer acquires in a property upon signing a purchase agreement — the right to purchase it. Wholesalers sell their equitable interest when assigning a contract.

F

Fix and Flip — A real estate investing strategy in which a property is purchased, renovated, and resold for profit. The primary end buyer for most wholesale deals.

H

Hard Money Loan — Short-term, asset-based financing used by fix-and-flip investors. Higher interest rates than conventional mortgages but faster funding and more flexible qualification.

HUD-1 / Closing Disclosure — The settlement statement showing all financial details of a real estate transaction. In an assignment closing, the assignment fee appears on this document.

M

MAO (Maximum Allowable Offer) — The highest price a wholesaler can offer a seller while still leaving room for the end buyer's profit and the wholesaler's assignment fee. Formula: (ARV × 70%) − Repairs − Assignment Fee.

Motivated Seller — A property owner with a compelling reason to sell quickly, often at below-market prices. Motivation drivers include financial distress, divorce, probate, relocation, and deferred maintenance.

O

Off-Market Property — A property available for sale that is not listed on the MLS. Off-market deals are the primary target of wholesale lead generation.

P

Probate — The legal process of settling a deceased person's estate. Inherited properties in probate are a common source of motivated seller leads for wholesalers.

Purchase Agreement — The contract signed between a wholesaler and a seller establishing the terms of the potential sale, including price, earnest money, closing date, and assignability.

R

REIA (Real Estate Investment Association) — Local investor networking groups where wholesalers meet cash buyers, lenders, and other active investors.

S

Skip Tracing — The process of locating an owner's contact information from a property address, typically using data services that aggregate public records and consumer data.

T

Title Company — The company that handles the closing of a real estate transaction, ensuring clear title and disbursing funds. Wholesalers should establish relationships with title companies experienced in assignment and double-close transactions.

Transactional Funding — Very short-term (24–48 hour) loans used to fund the A-to-B leg of a double closing. Typically costs 1–2% of the transaction amount.

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