What Is Real Estate Wholesaling and Why It Still Matters

By Michael Del Prete | AZREIA

Real estate wholesaling is an investment strategy where an individual called the wholesaler puts a property under contract at a discounted price and then assigns that contract to another buyer for a profit. The wholesaler doesn’t buy the property and they do not renovate it or manage tenants. Instead, they create value by identifying opportunities, negotiating effectively, and connecting motivated sellers with ready buyers.

At its core, wholesaling is about speed, relationships, and understanding the market.

Wholesalers aren’t fixing properties or listing them on the MLS. They’re sourcing deals, often distressed or off-market, and passing them on to investors who want to execute the next phase of the business.

Who Wholesaling Is Best For

Wholesaling is one of the most accessible entry points into real estate investing. It doesn’t require bank financing, personal credit, or a real estate license when done correctly. That’s why it attracts beginners, sales-minded entrepreneurs, contractors, and investors who are strong communicators and problem solvers.

That said, “easy” doesn’t mean effortless. Wholesaling takes real work, finding deals, building a buyer list, understanding values, and learning how to talk to sellers with confidence and integrity. It rewards people who are willing to learn about their market, do the outreach, and build a real network of investors, agents, contractors, and title professionals.

While the financial barrier to entry is lower than many strategies, there are still costs to consider: earnest money deposits, marketing, and basic business expenses. Wholesaling isn’t passive, but it is practical.

Legal Considerations Especially in Arizona

Wholesaling is legal in Arizona, but disclosures matter. Arizona law requires wholesalers to clearly disclose their role in the transaction and their intent to assign the contract. Misrepresenting ownership or acting like a licensed agent when you are not can create serious legal issues.

Why This Strategy Still Matters to Me

Wholesaling will always be special to me; it's how I got started in real estate. While most of my time today is dedicated to AZREIA as Executive Director, I still assign contracts to this day.

Just a few weeks ago, AZREIA instructor Stuart Gethner asked me to help get a cash offer on one of his townhomes. I walked the property, posted it on TikTok, and an old friend, someone I hadn’t spoken to in years, reached out and bought it. The deal closed with a $5,000 assignment fee.

No banks. No credit checks. No listing. Just relationships, market knowledge, and action.

The Bottom Line

Wholesaling isn’t magic, and it isn’t passive, but it works. It’s a strategy built on effort, communication, and consistency. When done ethically and professionally, wholesaling remains one of the most effective ways to enter real estate, generate income, and build long-term opportunity.

Wholesaling is simple.

It’s just not lazy.

Learn It Live at AZREIA

If wholesaling is something you want to learn or sharpen, make sure to attend our Phoenix Monthly Meeting, where we’ll be hosting some of the top wholesalers in Arizona on our Wholesaling Expert Panel.

We’re also excited to announce that Marcus Maloney and I will be teaching our Build Your Wholesale Business Step-by-Step Workshop on January 24th and 25th, hosted at the AZREIA office.

Register for both events at: azreia.org/calendar

We’ll see you there.