WholesalingLaw & Disclosure1. Wholesaling laws are changing
Do not assume the rules you learned a year ago still apply everywhere. States are adding wholesaler-specific disclosures, registrations, cancellation rights, and other requirements.
Teaching moment: Before marketing or assigning a contract in a new state, check the current state law and your contract language. “I have equitable interest” is not a substitute for following local rules.
Ask before signing: What disclosures, registrations, licenses, or cancellation rights apply here?
Current examples: Connecticut requires wholesaler registration and seller disclosures beginning July 1, 2026. Ohio's wholesaler disclosure law took effect March 2, 2026.
Connecticut DCP → ·
Ohio Revised Code →2. Assignment vs. double close
An assignment transfers your contract rights to the end buyer. A double close has two separate closings: seller-to-wholesaler and wholesaler-to-end-buyer.
Teaching moment: Do not choose the structure based only on the size of your fee. Consider contract terms, disclosure requirements, title-company capability, funding, buyer requirements, timing, taxes, and closing costs.
Ask early: Can my title company handle the structure I plan to use?
TitleClosing3. Vet the title company before you need them
Investor transactions can involve assignments, back-to-back closings, probate, liens, foreclosure deadlines, or unusual funding instructions. A title company that mainly handles standard retail transactions may not be comfortable with every investor structure.
Teaching moment: Ask about your structure before opening escrow—not two days before closing.
Ask: Do you handle assignments, same-day double closes, separate title companies, transactional funding, and distressed-property deadlines?
EMDRisk4. EMD mistakes can kill a deal
Earnest money is more than a number in the contract. The holder, deposit deadline, refundability, contingency dates, and release language can change your risk.
Teaching moment: Never send EMD until you understand who holds it, when it becomes non-refundable, and what happens if the transaction does not close.
Ask: Who holds the deposit, what are the deadlines, and exactly when can I lose it?
WholesalingDisposition5. Give buyers a clean deal package
Serious buyers want enough information to make a fast decision. A confusing blast with missing numbers creates extra questions and slows everything down.
Teaching moment: Organize the basics: price, property facts, photos, access instructions, estimated repairs, ARV support, occupancy, title status, EMD requirements, closing date, and your exit structure.
Ask yourself: Could a buyer understand the opportunity without chasing me for basic facts?
Fix & FlipDeal Math6. A flip is more than purchase price + rehab
New flippers often focus on the purchase and renovation numbers while forgetting the costs that accumulate while they own and sell the property.
Teaching moment: Build your estimate around the whole deal: purchase, rehab, financing, utilities, insurance, taxes, permits, holding time, selling costs, and a contingency for surprises.
Ask: If the rehab takes longer or costs more, does this deal still have enough margin?
Fix & FlipDue Diligence7. Hidden problems are not always inside the walls
Permits, municipal charges, judgments, solar agreements, sewer or septic issues, insurance problems, code violations, and ownership questions can create costs or delays even when the house itself looks fine.
Teaching moment: Property inspection and transaction due diligence are two different jobs. You need both.
Ask: What could stop me from closing, renovating, insuring, or reselling this property?
TitleSolar8. A clean title search is not always the end of the story
Some obligations tied to equipment or contracts may require separate documents or searches. Solar is a good example: panels may be owned, separately financed, leased, or covered by a power-purchase agreement.
Teaching moment: If something expensive is attached to the property, find out who owns it and whether an agreement survives the sale.
Ask: Is this equipment owned free and clear, financed, leased, or pledged as collateral?
Fannie Mae explains that lenders must determine solar ownership and financing structure and may need additional documentation or a UCC search when ownership is unclear.
Fannie Mae Selling Guide →9. Build backup funding before you need it
A lender can change guidelines, stop funding a product, reject a deal, or simply be unavailable when your closing date arrives.
Teaching moment: A backup funding relationship is easiest to build when you are not already under a 24-hour deadline.
Ask: If my first funding source says no tomorrow, who is my second call?
UnderwritingOffer Strategy10. Think like a lender before making the offer
A lender looks for repayment, risk, documentation, timing, collateral, exit strategy, and whether the transaction actually works—not just whether the spread looks exciting.
Teaching moment: Before you make an offer, pretend you are the person risking the money. If you cannot clearly explain how the capital gets in and back out, the deal is not ready.
Ask: What is the exit, what can go wrong, and how does the money get repaid?
FundingCost Comparison11. Don’t compare funding by the headline rate alone
A lower advertised percentage can still produce a higher final cost once minimums, upfront fees, timing charges, separate-title-company fees, or deal-size tiers are included.
Teaching moment: Compare the total dollar cost for your exact deal—not just the rate in the advertisement.
Ask: What will this deal cost me from start to finish, and what could cause that price to change?