90% of Cash Buyers Aren't Actually Buyers (Here's the Truth)

6 Mar 2026 · 0 min

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In this segment, Steve D. Valentine explains that the majority of people who appear to be cash buyers in real‑estate transactions are actually wholesalers. Wholesalers negotiate a purchase price on a property, then sell (assign) that contract to another investor at a markup—often $10,000 or more. The end buyer uses the contract’s inspection period to locate a final purchaser; if they cannot, they may renegotiate the price or cancel the contract altogether. This reveals that many “cash offers” are speculative moves rather than genuine, immediate purchases.

90% of the buyers that you're talking to are not actually the buyer. They're what we consider wholesalers. Wholesalers are negotiating a number in order to sell to another investor. So if you want $200,000 for your house and you have that contract, they may sell that contract for $210,000 and assign it to another buyer. That buyer is going to use the 10-day inspection period in your contract to go find a buyer, and if it doesn't work, they're going to come back and they're going to renegotiate the price, or they're going to cancel the contract.