wholesaling

Definition

A real estate strategy where investors contract a property at below-market price and immediately sell the contract to another buyer for a profit, without ever actually owning the property. It's like being a middleman who gets paid for connecting dots on a map.

Example Usage

He made $15,000 wholesaling a distressed property to a fix-and-flip investor without putting down a single dollar of his own money.

Origin

Adapted from retail terminology, referring to bulk purchasing and reselling

Fun Fact

Wholesaling requires almost no capital to start, which is why every third person at a real estate meetup claims to be a wholesaler—though far fewer actually close deals.

Source: Real estate investment community jargon

Related Terms

Beginner

Walkthrough

The final tour of a home before closing where you discover all the things that broke between the inspection and now. It's supposed to be a formality but often turns into a horror movie.

🏠 Real Estate

Intermediate

cash-out refinance

When you refinance your mortgage for more than you owe and pocket the difference, essentially using your house as a personal ATM. It's a way to access home equity while simultaneously increasing your debt and monthly payment—what could go wrong?

🏠 Real Estate

Intermediate

recorded plat

An official map filed with the county showing how land is divided into lots, streets, and easements. It's the government-approved blueprint that prevents you from accidentally buying someone's driveway.

🏠 Real Estate

Intermediate

legal description

A formal property boundary description sufficient to locate and identify the property with certainty, typically using metes and bounds, lot and block, or government survey systems. 'The house on the corner' doesn't cut it.

🏠 Real Estate

Advanced

break-even ratio

The percentage of gross income needed to cover operating expenses and debt service, revealing how close a property teeters to financial disaster. It's the fiscal tightrope number—anything approaching 100% means you're one vacancy from trouble.

🏠 Real Estate

Intermediate

off-market

Properties available for purchase that aren't publicly listed on the MLS or advertised to the general public. These are deals found through networking, direct marketing, or knowing someone who knows someone—real estate's version of insider trading, but legal.

🏠 Real Estate

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See “wholesaling” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

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