🚫 Reasons a Property Is Not Likely a Wholesale Deal
- Ronda Sharp
- May 27
- 3 min read
Not every property is a great property to wholesale. Let's explore some of the ways to determine whether a potential property is a wholesale deal.
1. Seller Is Not Motivated
They want retail or appraisal value.
They’re “just curious” or “testing the market.”
They’re not in a hurry to sell.
Search for Motivated sellers instead: 🔍 Motivated sellers create urgency and flexibility. Without that, there's rarely room for a wholesale deal.
2. Property Is in Retail-Ready Condition
Recently renovated or upgraded.
Minimal to no repairs needed.
Move-in ready with modern finishes.
Search for properties that need work: 🛑 Investors look for distressed or under-market homes. If it’s already updated, there’s little to no upside for a return.
3. ARV Is Overestimated or Inaccurate
Comps aren’t truly comparable (e.g., different neighborhood, size, style).
The ARV is based on best-case scenario, not realistic sale prices.
Do your research. Use tools such as Zillow or Propstream: 📉 If your ARV is off, your MAO will be too high, leaving no room for profit.
4. Seller’s Asking Price Is Too High
Their asking price exceeds your MAO (Max Allowable Offer).
Even with negotiation, the price is too close to ARV.
Don't force the price: 💰 If the seller won’t lower their price, there’s no profit margin to assign the contract.
5. Repair Costs Are Too High
Property is a full gut or has foundation, mold, or structural issues.
Rehab costs exceed the profit potential.
Leave room for cushion for unexpected expenses, if the numbers still don't work, don't force it. ⚒️ Heavy rehab means only seasoned investors will consider it—and only if the numbers still work.
6. No Investor Buyer Interest
Property is in a location investors avoid.
There’s no strong rental or flip market in the area.
Local investors don’t trust the neighborhood or property type.
Make sure you have a great number of investors on your list: ❌ If your buyer pool is cold, the deal can’t be assigned—no matter how good it looks on paper.
7. Property Is Already Listed on the MLS
Active listing at retail price.
Agent involved may not allow assignment clauses.
Multiple offers or high visibility reduce your negotiation power.
Depending on the area where you live, you may not get paid for your efforts. 🧾 On-market deals are harder to assign and usually overpriced for investors.
8. Title Issues or Legal Barriers
Property has liens, back taxes, or probate complications.
Seller doesn’t have clear title or legal authority to sell.
Do your due diligence. Find out if a succession is completed or needed, bankruptcy, liens, etc. ⚖️ These issues delay or kill deals—especially if a quick close is required.
9. No Equity in the Property
Seller owes more than the home is worth.
Little to no room between loan balance and market value.
Investors typically like some equity. Your goal is to find them what they want.🏦 You can’t wholesale a deal if there's no equity to play with (unless it's a creative finance deal).
10. Area Doesn’t Support the ARV
Neighborhood doesn’t justify the projected after-repair price.
Buyer demand is low in the area.
Research, research, research - 📍 Location is everything. Even a discounted home won’t sell if the area lacks investor demand.
The information in this article are of the opinion and experience of the author. Due diligence should always be done before investing in real estate.
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