Breaking Down a Successful Paper Flipping Houses Contract Case Study Step by Step

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In this case study, I’ll walk you through a successful paper flip deal from me and one of my students from start to finish so you can see exactly how profits are made. The information in this article may contain affiliate links.

While the idea of paper flipping contracts instead of properties can sound complicated, it’s actually very straightforward when broken into steps.

Step 1: Finding the Deal

I began with a Propstream session using probates as my filter to find leads in this category. I found a potential seller who had recently inherited several properties and discovered that the seller lived in another city. This is a classic motivated seller scenario—someone with properties that they potentially don’t want or can’t manage, especially if they live in another town.

Step 2: Contacting the Seller

After not being able to reach them by phone, I sent a personalized letter to the owner offering a quick, hassle-free sale. Within a week, the seller called back, explaining they just wanted to “get rid of the headache.”

As the wholesaler, I asked questions, listened carefully, and built trust. Motivation was clear: the seller didn’t want to fix the properties, keep paying taxes, nor be a landlord.

Step 3: Negotiating the Contract

After walking the properties and running comps, I estimated how much each home (3 properties in total) could sell for and totals for all the repairs. My research found the following:

• Total After Repair Value (ARV) for all properties combined: $250,000

• Estimated Repairs for all properties combined: $50,000

  
  

I used the following MAO (Maximum allowable offer) to determine my offer for both the buyer and seller:

• (ARV * .70)- Repairs - Assignment Fee = MAO

• ($250,000 * .70) - $50,000 - $20,000 = $105,000

That meant that I needed to find a buyer who would be willing to purchase the property which includes the assignment fee for $105,000 or more. I also needed to make an offer to the seller for $85,000 or less.

• MAO - Assignment Fee = Offer to Seller

• $105,000 - $20,000 = $85,000

I started negotiations with the seller for $75,000. After some back-and-forth, the seller agreed to a purchase price of $75,000 and signed an agreement to sell contract. Due to the lower accepted price, this would allow me to make a higher wholesaler fee of $30,000 instead of the initial $20,000 that I was seeking.

Step 4: Marketing the Contract

With the property under contract, I entered a JV Agreement ( Joint Venture) with one of my students to market the property to his buyer's list that he collected from Propstream for an asking price of $105,000. They sent an email blast and posted details in a local real estate investor Facebook group. Within days, a landlord expressed strong interest, since the numbers worked well for their strategy.

Step 5: Assigning the Contract

I entered a purchase agreement with the seller for $75,000 and also entered into an Assignment Agreement with the buyer for $105,000 ($75,000 for the seller, $30,000 to us as wholesalers). The assignment contract outlined the amount the seller would receive and how much my student and I would make with our JV Contract ($30,000). The purchase agreement, assignment agreement, and JV contract were sent over to the buyer's selected title company to order title.

Step 6: Closing the Deal

At closing, the seller received their $75,000 and a burden was lifted. The buyer took possession of the property at $105,000, which was a great deal with an ARV of $250,000 total. We as wholesalers each received $15,000 for a minimal amount of effort. All parties walked away satisfied:

• The seller unloaded an unwanted property.

• The buyer got a solid investment deal.

• The wholesalers made a profit without ever swinging a hammer.

Key Lessons from This Paper Flip

1. Motivated sellers are the foundation. Without them, there’s no deal.

2. Numbers matter. Always run comps and calculate repairs before making offers.

3. Relationships pay off. A strong buyers list makes assigning contracts much easier.

4. Title companies are essential. They ensure the deal closes smoothly and your fee is protected.

Final Thoughts

This case study shows the power of paper flipping houses contracts—you don’t need huge capital, construction crews, or months of renovations to profit in real estate. With negotiation skills, the right numbers, and reliable partners, you can build a thriving business flipping contracts.

The information in this article are of the experience and opinion of the author. Due diligence should always be done before venturing into real estate.