Core Deal Terms
ARV (After Repair Value)
The estimated market value of a property after all repairs and renovations are complete. ARV is the foundation of every wholesale deal. You calculate it by pulling recent comparable sales (comps) of similar properties in the same area that are already in retail condition.
MAO (Maximum Allowable Offer)
The highest price you can pay for a property and still leave enough margin for your assignment fee and the buyer's profit. The standard formula: MAO = (ARV x 0.70) minus repairs. If the numbers don't work at or below your MAO, you move on.
Assignment Fee
The profit a wholesaler collects for transferring their purchase contract to an end buyer. When you assign a contract, you are selling the right to buy the property, not the property itself. Assignment fees typically range from $3,000 to $20,000 or more depending on the deal and the market.
Double Close
A transaction where the wholesaler actually purchases the property and immediately resells it to the end buyer in two separate back-to-back closings. Used when a seller or title company won't allow an assignment, or when the wholesaler wants to keep their profit margin private.
Equitable Interest
The legal interest a buyer holds in a property once a purchase contract is signed, before the deed officially transfers. When a wholesaler signs a contract with a seller, they hold equitable interest. That interest is what gets assigned to the end buyer.
EMD (Earnest Money Deposit)
A deposit paid by the buyer when a purchase contract is signed, held in escrow by the title company. This shows the seller you are serious. In wholesale deals, EMDs are typically small ($500 to $2,000), but the amount is negotiated per deal.
Wholesale Contract
A purchase and sale agreement between the wholesaler and the motivated seller. The contract includes an assignability clause, which allows the wholesaler to transfer (assign) the contract to another buyer. Without that clause, you cannot wholesale the deal.
Assignment Contract
The separate document used to transfer the wholesaler's rights under the purchase contract to the end buyer. The assignment contract spells out the assignment fee and releases the wholesaler from their obligation to close once the buyer steps in.
ARV Spread
The gap between the purchase price and the ARV, minus repair costs. A wide spread means more margin for everyone in the deal. Wholesalers target deals with enough spread to cover repairs, their assignment fee, and still leave the buyer with 20 to 30 percent equity at minimum.
Lead and Seller Terms
Motivated Seller
A property owner who has a compelling reason to sell quickly and at a discount: divorce, probate, tax delinquency, job loss, inherited property, or deferred maintenance they can't afford to fix. Motivation is what creates the gap between market value and your offer price.
Skip Tracing
The process of finding contact information for a property owner who is not easily reachable. Skip tracing services like BatchSkipTracing or PropStream pull phone numbers and emails from public and private data sources tied to a person's name and address.
Driving for Dollars
The practice of physically driving through neighborhoods looking for distressed or vacant properties. The idea is that visible distress often signals a motivated seller. Many virtual wholesalers skip this entirely and pull distressed lists digitally instead.
Absentee Owner
A property owner whose mailing address does not match the property address. This means they don't live in the property, which often signals a landlord, investor, or inherited-property situation. Absentee owners are a high-value lead source for wholesalers.
Tax Delinquent
A property owner who is behind on their property taxes. Tax delinquency is a strong indicator of financial distress and willingness to sell at a discount. Most counties publish tax delinquent lists publicly.
Pre-foreclosure
The period between when a lender files a notice of default and when the property goes to foreclosure auction. Sellers in pre-foreclosure are often highly motivated because selling to a wholesaler lets them avoid a foreclosure on their credit record.
Seller Documentation
Any photos, records, or disclosures provided by the seller to help the buyer or wholesaler evaluate the property's condition. Getting complete documentation quickly is one of the biggest bottlenecks in virtual wholesaling.
SellerSubmit automates seller documentation. Instead of scheduling a site visit or waiting on a BOTG, you send the seller a branded link. They complete a guided photo walkthrough from their phone. You receive an organized, shareable photo set in under 10 minutes. No site visit. No back-and-forth. Ready to send to buyers immediately.
Title and Closing Terms
Title Company
The neutral third party that handles the closing process: reviewing the chain of title, issuing title insurance, managing the escrow account, and disbursing funds. In wholesale deals, the title company also processes the assignment and disburses your assignment fee at closing.
Chain of Title
The historical record of every ownership transfer for a property, from original grant to current owner. A clean chain of title means no ownership disputes or unresolved claims. A broken or unclear chain can delay or kill a deal.
Cloud on Title
Any unresolved claim, lien, encumbrance, or dispute that makes ownership unclear or unmarketable. Common examples: old unpaid liens, recording errors, unresolved probate, or undisclosed heirs. A cloud on title must be resolved before a property can be sold cleanly.
Transactional Funding
Short-term financing used to fund the first leg of a double close. The transactional funder wires money so the wholesaler can buy the property, and it gets paid back within the same day or a few days when the wholesaler sells to the end buyer. Typically costs 1 to 2 percent of the purchase price.
Deal Structure Terms
Subject-To
A creative financing strategy where a buyer takes over a property "subject to" the existing mortgage staying in the seller's name. The buyer makes payments on the existing loan without formally assuming it. This is not typically used in standard wholesale flips but appears frequently in creative deal structuring.
Novation Agreement
A contract that replaces one party in an existing agreement with a new party. In wholesaling, a novation is sometimes used as an alternative to assignment when assignment is not permitted. It substitutes the wholesaler out of the contract and places the end buyer in directly, with the seller's consent.
Seller Financing
When the seller acts as the lender, allowing the buyer to make payments directly to them over time instead of getting a bank loan. Less common in wholesale flips, but relevant when a seller owns a property free and clear and prefers income over a lump sum.
Daisy Chain
When multiple wholesalers pass the same deal between themselves, each expecting to collect a fee. Daisy chains create confusion at closing and often kill deals because too many parties inflate the price beyond what the numbers support. Avoid them.
Evaluation and Operations Terms
Comp (Comparable)
A recently sold property used to estimate the ARV of a subject property. Good comps are similar in size, condition, location, and age. Most wholesalers pull comps from MLS data, PropStream, or by working with an agent or investor-friendly realtor in the market.
Scope of Work
A written list of all the repairs and improvements needed on a property. A detailed scope of work is the input for a rehab budget. Experienced wholesalers develop templated scopes to estimate repair costs quickly without a full contractor walkthrough on every deal.
Rehab Budget
The estimated total cost to repair a property to retail condition. The rehab budget feeds directly into the MAO calculation. Wholesalers who underestimate rehab costs hurt their buyers and damage their reputation. Overestimating means fewer deals. Accuracy is the goal.
Pipeline
The full collection of leads and deals currently active in your operation, from first contact through closed assignment. A healthy pipeline has leads at every stage: new contacts, follow-up sequences, offers out, contracts signed, and deals in disposition.
Disposition
The process of selling or assigning a deal to an end buyer. Once a property is under contract, disposition begins: marketing the deal to your buyers list, fielding offers, executing the assignment contract, and coordinating with the title company through closing.
Acquisition
The process of finding and getting a property under contract. Acquisition includes lead generation, seller outreach, negotiations, and contract execution. In larger wholesale operations, acquisitions and dispositions are handled by separate team members.
Virtual and Technology Terms
BOTG (Boots on the Ground)
A local person hired to physically visit a property on behalf of a virtual wholesaler. BOTG contractors take photos, assess condition, and report back. Their quality varies, response times vary, and using them creates a bottleneck that slows down deal evaluation.
Virtual Wholesaling
The practice of wholesaling properties in markets where you do not physically live or visit. Virtual wholesalers operate entirely remotely using phone, email, DocuSign, and tools like SellerSubmit to evaluate properties without ever stepping foot inside.
White-Label
A product or service that can be rebranded by the buyer to present as their own. SellerSubmit is white-labeled: your sellers see your business name and branding, not SellerSubmit's. This keeps your operation looking professional and consistent.
Proof of Funds
Documentation showing a buyer has the cash or financing available to close a deal. In wholesale, sellers often ask for proof of funds before accepting an offer. Wholesalers should also require proof of funds from their buyers before presenting them with deals.
Buyer's List
A database of cash buyers and investors who want to purchase wholesale deals. Your buyers list is your most valuable asset as a wholesaler. The larger, more qualified, and more active it is, the faster you can move every deal you put under contract.