CalculateRealEstateROI

Flipping · Guide

Wholesaling vs Flipping

Wholesaling assigns contracts; flipping closes them. Different capital, skill, and reward profiles.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Key takeaways

  • Wholesaling needs little capital.
  • Flipping needs rehab skill + capital.
  • Wholesale fee $5–25k per deal.
  • Flip margin $25–60k per deal.
  • Wholesale = lead gen; flip = execution.

Core concepts

Wholesale

Contract assignment — find deal, sell to investor.

Flip

Buy, rehab, sell.

Bridge

Many flippers start as wholesalers.

Step-by-step framework

  1. 1Decide based on capital + skill.
  2. 2Wholesale first if learning.
  3. 3Flip when capital + team ready.

Common mistakes to avoid

  • Wholesaling without legal entity.
  • Flipping before learning underwriting.

Frequently asked questions

Wholesale legal?

Yes if assignment, not double-close in most states.

Wholesale fee?

$5–25k.

Capital for wholesaling?

Marketing budget only.

Bridge to flipping?

Yes — 1–2 years typical.

Action checklist

  • Strategy decided.
  • Legal entity formed.
  • Marketing or capital lined up.

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