Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

How Wholesaling Works

18 Feb 2024 · 1 min

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In this segment of the YouTube video "How Wholesaling Works," Christian Osgood explains the core mechanics of real‑estate wholesaling. He describes wholesaling as finding a property deal, placing it under contract in the wholesaler’s own name (e.g., "Christian and/or assigns"), and then assigning that contract to another buyer for a predetermined assignment fee. The wholesaler does not need to act as a licensed broker; instead, they act as a middle‑man who packages the deal, secures a favorable purchase price, and transfers the contract to an end‑user who closes the transaction. When the deal closes, the wholesaler receives the assignment fee as profit, while the buyer acquires the property at the agreed price. The explanation emphasizes the simplicity of the process—identifying an opportunity, contracting it, assigning it, and collecting a markup—without delving into deeper legal or financing details.

Chapters

In wholesaling, essentially what you're doing is you're taking a deal, you're packaging it up. So you're finding an opportunity and you don't need to be a broker for this. You're actually going to put it under contract in your own name. So Christian and/or assigns is going to go under contract, buy a deal. Now my mission here is I need to assign the contract to someone else for a fee. It's called an assignment fee. So when this deal closes, I'm going to get my fee, they get the deal. And so I essentially get to do a deal with fantastic pricing, get a little bit of a markup and move it down the line, sell it to a different end user and I get my fee.