Disposition: How to Sell Your Contract Fast (and for More)

You've got a property under contract. But if you can't sell that contract quickly and for a strong assignment fee, you don't get paid. Disposition is the side of wholesaling that separates the pros from the tire-kickers.

Key takeaways

• Disposition is the process of marketing and selling your wholesale contract to an end buyer — usually a cash investor or flipper.
• Price your assignment fee based on the buyer's profit margin, not your desired payday. A fee that eats the buyer's profit won't sell.
• Build a buyer's list before you get a deal under contract. The best disposition happens before you even make an offer.
• Use a simple, consistent marketing system: email blasts, text blasts, and social media posts with clear numbers and photos.
• Negotiate your fee down if needed. A smaller fee on a sold deal beats a full fee on a dead contract every time.

What is wholesale disposition?

Wholesale disposition is the process of marketing and selling your wholesale real estate contract to an end buyer — typically a cash investor, rehabber, or landlord. It's the "exit" side of wholesaling.

Once you have a property under contract, you need to find a buyer who will pay you an assignment fee for the right to step into your contract and purchase the property. Disposition covers everything from building a buyer's list to negotiating the assignment fee.

Many wholesalers focus all their energy on finding deals and getting them under contract. But if you can't dispose of the contract, you don't make money. Disposition is just as important as acquisition.

Why is disposition so important for wholesalers?

Disposition is how you get paid. Without a buyer, your contract is just a piece of paper. The faster and more efficiently you can sell that contract, the more deals you can do.

A strong disposition process also lets you command higher assignment fees. When you have multiple buyers competing for the same deal, you can negotiate from a position of strength. Buyers know they need to move fast or lose the deal.

Tip: Treat disposition like a sales job. You're not just a middleman — you're a marketer and negotiator. The better you are at both, the more you keep.

How do you build a buyer's list for disposition?

Your buyer's list is your most valuable asset as a wholesaler. Start building it before you ever get a deal under contract. Here's how:

1. Attend local real estate investor meetups and REIA meetings. Bring business cards and talk to cash buyers, flippers, and landlords. Ask what they're looking for.
2. Pull tax records and look for frequent property flippers. These are people who buy, rehab, and sell quickly — they need a steady pipeline of deals.
3. Use social media. Join local real estate investor Facebook groups and post what you have. Engage with others who are buying.
4. Network with other wholesalers. They may have buyers who aren't interested in their current deals but could be a fit for yours.
5. Create a simple CRM — even a spreadsheet — to track buyer names, contact info, buying criteria (price range, location, property type), and how quickly they close.

What information should you collect for each buyer?

For each buyer on your list, track:

• Name and phone number
• Email address
• Preferred property types (single-family, multi-family, commercial)
• Price range (max purchase price they'll pay)
• Target areas (specific neighborhoods or zip codes)
• Typical closing timeline (cash close in 7 days? 14 days?)
• Notes on past deals (did they close fast? Were they easy to work with?)

Warning: Don't just collect names. Qualify your buyers. A buyer who never closes is worse than no buyer at all. Ask for proof of funds or recent closing statements.

How do you market a wholesale deal to buyers?

Once you have a property under contract, you need to get it in front of your buyer's list fast. Time is money — every day you hold the contract, you risk the seller getting cold feet or another wholesaler beating you to the punch.

Step 1: Prepare your deal package

Your deal package should include:

• Property address and basic info (bedrooms, bathrooms, square footage, lot size)
• Photos — at least 10-15 clear, well-lit photos showing the condition. Include both interior and exterior. Don't hide damage — buyers need to see what they're getting into.
• ARV (After Repair Value) — what the property could sell for after repairs. Use comps from recent sales of similar renovated properties in the area.
• Repair estimate — a rough breakdown of needed repairs and estimated costs. You don't need a contractor bid, but a realistic ballpark helps buyers decide.
• Your asking price — the total price the buyer would pay (your contract price plus your assignment fee). Be clear about what you're asking.
• Proof of funds or pre-approval (optional but helpful) — shows you're serious and can close.

Step 2: Send your blast

Use email, text, or a combination. Here's a simple sequence:

1. Initial email blast — send the deal package to your entire buyer's list. Subject line should include the address, price, and a key selling point (e.g., "Under $150K in Prime Neighborhood — Needs TLC").
2. Text message follow-up — 2-4 hours later, send a short text to buyers who didn't open the email: "Just sent a deal at 123 Main St — asking $145K, ARV $220K, about $40K in repairs. First come, first served."
3. Social media post — post in local investor Facebook groups and on your own page. Include photos and key numbers.
4. Direct calls — for your top 5-10 most active buyers, call them personally. Tell them about the deal and ask if they want to see it.

Tip: Create a sense of urgency. Use phrases like "under contract now," "first assignment fee gets the deal," or "showing this weekend only." Buyers respond to scarcity.

Step 3: Schedule showings

Once a buyer expresses interest, schedule a showing as soon as possible. Walk the property with them, point out the good and the bad, and answer their questions. Be honest about the condition — trust is everything in this business.

How do you price your assignment fee?

Pricing your assignment fee is the most delicate part of disposition. Price it too high, and the deal sits. Price it too low, and you leave money on the table.

The buyer's profit margin method

The best way to price your fee is to work backward from the buyer's potential profit. Here's a simple formula:

Buyer's Profit = ARV - Purchase Price - Repair Costs - Holding Costs - Your Assignment Fee

Your goal is to leave the buyer with a profit that makes the deal worth their time. For most flippers, that's at least 20-30% of the ARV, or a minimum of $20,000-$30,000 on a typical deal.

Example scenario (illustrative)

Let's say you have a property under contract for $100,000. The ARV is $180,000. Repairs are estimated at $30,000. Holding costs (taxes, insurance, utilities) might be $5,000.

• Buyer's potential gross profit: $180,000 - $100,000 - $30,000 - $5,000 = $45,000
• If you ask for a $15,000 assignment fee, the buyer nets $30,000 — a solid deal.
• If you ask for $25,000, the buyer nets $20,000 — still okay, but less attractive.
• If you ask for $35,000, the buyer nets $10,000 — probably not worth their time.

So in this case, a fee between $10,000 and $20,000 is reasonable. Start at the higher end, but be willing to negotiate down.

What about a flat percentage?

Some wholesalers use a flat percentage of the spread (the difference between ARV and total costs). A common range is 10-20% of the spread. But this is less precise than the profit margin method because it doesn't account for the buyer's specific costs.

Comparison: Pricing Methods

Method	How It Works	Pros	Cons
Buyer's Profit Margin	Work backward from buyer's desired profit	Most accurate; ensures deal is attractive to buyer	Requires good ARV and repair estimates
Flat Percentage	Take 10-20% of the spread (ARV minus costs)	Simple to calculate	Can overprice or underprice; ignores buyer's actual profit
Market Rate	Charge what other wholesalers in your area charge	Easy to benchmark	May leave money on the table or price too high
Negotiation	Start high and come down	Flexible; can maximize fee	Slows down the process; may scare off buyers

Tip: Always leave room to negotiate. Start your asking fee a little higher than your target, so you can come down and make the buyer feel like they got a win.

What are common disposition mistakes to avoid?

Even experienced wholesalers make these mistakes. Avoid them to close more deals and keep more money.

Mistake 1: Not having a buyer's list before you get a deal

If you're scrambling to find a buyer after you're already under contract, you're at a disadvantage. Build your list first. Even 10 solid buyers can move a deal fast.

Mistake 2: Overpricing your assignment fee

Greed kills deals. If you price your fee so high that the buyer can't make a profit, the deal will sit. You'll eventually have to lower it or lose the contract. A smaller fee on a sold deal is better than a big fee on a dead one.

Mistake 3: Being dishonest about the property condition

If you hide problems, buyers will find them during inspection. They'll either back out or demand a price reduction. Honesty builds trust and leads to repeat buyers.

Mistake 4: Not following up

Buyers are busy. If they don't respond to your first blast, follow up. A second email or text a day later can make the difference. Some buyers need to see a deal two or three times before they act.

Mistake 5: Ignoring the seller

Once you assign the contract, your relationship with the seller isn't over. Make sure the buyer closes on time. If there are delays, communicate with both parties. A smooth closing makes everyone happy and leads to referrals.

How do you negotiate the assignment fee?

Negotiation is part of every wholesale deal. Here's a simple process:

1. Start with your asking price — present the deal with your fee included. Explain your reasoning: "Based on the ARV and repairs, I think a $15,000 assignment fee is fair. That leaves you a $30,000 profit."
2. Listen to the buyer's counter — they may say the fee is too high. Ask why. Maybe they have higher repair costs than you estimated, or they need a bigger profit margin to justify the risk.
3. Find common ground — if the buyer's objection is valid, adjust your fee. If they're just trying to lowball you, hold firm or offer a small concession.
4. Use deadlines — "I have another buyer looking at this tomorrow. If you can commit today at $12,000, it's yours." Urgency can close the deal.
5. Know your walk-away point — decide the minimum fee you'll accept before you start negotiating. Don't go below that unless you're about to lose the contract entirely.

Warning: Don't get emotional. A deal that doesn't make sense for the buyer won't close. If you can't agree on a fee, move on to the next buyer.

How do you close the assignment?

Once you and the buyer agree on a fee, you need to formalize the assignment. Here's the typical process:

1. Draft an assignment agreement — this is a separate contract between you and the buyer, assigning your rights under the original purchase agreement to the buyer. Your real estate attorney should review your template.
2. Collect the assignment fee — at closing, the buyer pays you directly, or the title company disburses your fee from the proceeds. Make sure the fee is clearly stated in the assignment agreement.
3. Coordinate with the title company — provide them with both the original contract and the assignment agreement. They'll handle the paperwork.
4. Notify the seller — in most cases, the seller is informed that you're assigning the contract. Some contracts require the seller's consent, so check your original agreement.
5. Follow up — after closing, thank the buyer and ask if they'd like to be on your list for future deals. A happy buyer is a repeat buyer.

Recommended tools / next steps

To streamline your disposition process, use a CRM to manage your buyer's list and track communications. A simple spreadsheet works at first, but as you grow, consider dedicated real estate CRM software. Also, use a property analysis tool to quickly calculate ARV and repair costs. Your next step: start building your buyer's list today — even before you have a deal. The more buyers you have ready, the faster you'll sell your contracts.

Check out our directory for top-rated CRM and property analysis tools to power your wholesale business.