Real Estate Wholesaling business plan

Hearth and Deed Acquisitions is a real estate wholesaling company that finds off-market houses from motivated sellers in a mid-sized US city and assigns the purchase contracts to local investors for a fee. The founder is a part-time agent with a background in construction estimating, who can evaluate repair costs quickly. The company operates in six zip codes where investors are actively buying and values are stable.

Startup costs are about $5,500, mainly for lead marketing, a CRM, legal review of contracts, and a skip tracing tool. The average assignment fee is $6,500. The plan assumes the first closing in month three, one closing in month six, and two per month by month twelve, which yields about $13,000 in monthly revenue at that time. Results vary, and the plan includes a reserve in case early months produce no closings.

Hearth and Deed Acquisitions LLC acts as a principal, not as an agent. It signs purchase contracts with sellers that include clear language about its intent to assign the contract, and it discloses in writing that it is not a licensed broker for the seller. The company has an attorney-approved contract set that follows state requirements, including any disclosure language required for wholesalers.

The company never markets a property as its own until it holds equitable interest through a signed contract, and it does not advertise properties on the multiple listing service. Closings run through a local title company that is experienced with assignments or double closings. The founder is licensed but conducts wholesale deals only under disclosure rules approved by counsel and in compliance with the state real estate commission’s guidance.

Sellers of distressed or inherited properties often want a fast, as-is sale without showings, repairs, or agent commissions. They are frequently owners dealing with probate, tired landlords, or homeowners facing repairs they cannot afford. At the same time, local investors who renovate and resell or rent houses constantly need a fresh supply of discounted deals.

The wholesaler’s role is to find and contract the property and connect it to a qualified investor. Competition for leads is high, so success relies on consistent direct outreach, accurate repair estimates, and an active buyers list. The legal environment varies by state, so wholesalers must follow disclosure and licensing rules closely.

Competitors include national home-buying companies, local investors who buy directly, and other wholesalers. National companies advertise heavily and can close quickly but may offer lower prices. Local investor-buyers compete for the same leads but usually only buy properties that fit their exact criteria.

Hearth and Deed competes through speed, honesty, and local knowledge. The founder visits each property within 48 hours, gives the seller an offer in writing, and explains the assignment process. The company also tells sellers when listing with an agent would net them more, which builds trust and referrals.

The lead plan relies on a mix of direct mail to probate filings and tax-delinquent lists, driving for dollars in the target zip codes, and a modest pay-per-click campaign for searches like sell my house as-is. The company budgets about $900 per month for mail, skip tracing, and ads.

Relationships also matter. The founder will meet probate attorneys, estate cleanout companies, and property managers who encounter distressed owners. Buyer relationships come from investor meetups and county records of cash purchases. Each deal is photographed and described in a one-page packet that is sent to the buyers list within 24 hours of getting a property under contract.

Leads are logged in a CRM and followed up with a call within an hour. The founder visits the property, estimates repairs using a standard checklist, and calculates the maximum allowable offer using recent sales and a target investor margin. Contracts include an inspection and assignment contingency period of 14 to 21 days.

After the contract is signed, the deal is sent to qualified buyers, and showings are arranged. An assignment agreement is signed, earnest money is deposited with the title company, and closing is scheduled. The company keeps records of all communications and disclosures and reviews each deal with its attorney on first use of any new document.