Real Estate Wholesaling Terms, Defined.
31 terms every wholesaler and investor should know, in plain language, no jargon left unexplained.
ARV (After Repair Value)
ARV is what a property will be worth once it is fully renovated and sold at market. Wholesalers and flippers calculate ARV from recent comparable sales, then use it as the base number for the 70% rule and a maximum allowable offer. See the free ARV calculator.
MAO (Maximum Allowable Offer)
MAO is the highest price an investor can pay for a property and still hit their profit target, calculated as (ARV × the rule percentage) minus repair costs and any wholesale fee. Most wholesalers start from the 70% rule and adjust for their market. Try the free MAO calculator.
70% Rule
The 70% rule is a quick formula for a maximum offer: pay no more than 70% of the ARV, minus repair costs. It is a starting point, not a law, competitive markets often push toward 75-80%, riskier deals often need 60-65% to leave margin.
Assignment Fee
An assignment fee is the profit a wholesaler collects for assigning a purchase contract to an end buyer, instead of closing on the property themselves. It is paid at closing and is the wholesaler's entire compensation on a standard wholesale deal.
Assignment Contract
An assignment contract is the legal document that transfers a wholesaler's rights (and obligations) under a purchase agreement to a new buyer, in exchange for an assignment fee. The original seller is typically not a party to this contract.
Bird Dog
A bird dog is someone who finds and refers potential deals to a wholesaler or investor for a flat finder's fee, without putting a property under contract themselves. It is a common entry point for people learning wholesaling with little capital.
Buy Box
A buy box is the specific set of criteria (location, price range, property type, condition) an investor or their cash buyers are actively looking to purchase. Wholesalers match incoming leads against buyer buy boxes to know who to call first.
Cash Buyer
A cash buyer is an investor who can purchase a property without a mortgage contingency, closing faster and with fewer financing hurdles. Wholesalers build a list of cash buyers so they have somewhere to sell an assigned contract quickly.
Comparable Sales (Comps)
Comps are recently sold properties similar in size, condition, and location to a subject property, used to estimate its ARV. Good comps are sold (not listed), within about half a mile, similar square footage, and sold in the last 3-6 months.
Cold Calling (Real Estate)
Real estate cold calling is outbound calling to property owners who have not requested contact, to find people who are motivated to sell off-market. See Pipelio for cold callers for the dialer and CRM side of running this at volume.
Direct-to-Seller Marketing
Direct-to-seller marketing is any outreach (calls, texts, direct mail, driving for dollars) aimed straight at property owners, bypassing agents and the MLS, to surface off-market deals before other investors see them.
Distressed Property
A distressed property is one facing a financial or physical problem, foreclosure, tax liens, deferred maintenance, or an estate sale, that motivates the owner to sell quickly and often below market value.
DNC (Do Not Call Registry)
The Do Not Call (DNC) Registry is a list of phone numbers that have opted out of telemarketing calls under the TCPA. Real estate cold callers are expected to scrub lists against the DNC registry and honor do-not-call requests immediately.
Double Close (Double Closing)
A double close is a wholesale strategy where the wholesaler actually purchases the property from the seller, then immediately resells it to the end buyer in a second, back-to-back closing, instead of assigning the contract. It is used when the assignment fee needs to stay confidential or the contract prohibits assignment.
Driving for Dollars
Driving for dollars is physically (or virtually, via street-view tools) scouting neighborhoods for visibly distressed or vacant properties, then skip tracing the owner to make contact. It is a sourcing method, distinct from the CRM work of managing the lead afterward.
Equity
Equity is the difference between a property's market value and what the owner still owes on it. High-equity, distressed properties are a common target for wholesalers because the owner has room to accept a below-market cash offer and still walk away with money.
Fix and Flip
A fix and flip is buying a property below market value, renovating it, and reselling it at (or near) ARV for a profit, usually within months. It is distinct from wholesaling, where the wholesaler never takes title or does the renovation.
Hard Money Loan
A hard money loan is short-term, asset-backed financing from a private lender, used by investors to buy and renovate a property quickly, at higher interest than a conventional mortgage but with much faster approval.
List Stacking
List stacking is combining multiple lead-generation lists (pre-foreclosure, tax delinquent, absentee owner, tired landlord, etc.) and flagging properties that appear on several lists at once, since overlap usually signals a more motivated seller.
Motivated Seller
A motivated seller is a property owner under pressure, financial, legal, or personal, to sell quickly, and therefore more willing to accept a fast, as-is cash offer below retail price. Finding these owners before other investors do is the core skill in wholesaling.
Off-Market Property
An off-market property is a home for sale (or sellable) that is not listed on the MLS. Off-market deals are typically found through direct-to-seller marketing, wholesaler networks, or driving for dollars, rather than a public listing.
Pre-Foreclosure
Pre-foreclosure is the period after a homeowner has defaulted on their mortgage but before the lender completes foreclosure. Owners in pre-foreclosure are common motivated-seller leads since a fast sale can help them avoid a foreclosure on their credit.
Probate Lead
A probate lead is a property lead sourced from public probate court filings, typically an inherited property whose new owner (often out of state or uninterested in the property) may want a quick, hands-off sale.
REO (Real Estate Owned)
REO refers to a property that has gone through foreclosure and reverted to the lender's ownership because it did not sell at auction. Banks typically want REO properties off their books quickly, which can mean below-market pricing.
Skip Tracing
Skip tracing is the process of finding accurate contact information (phone numbers, mailing address) for a property owner, typically starting from just a name and property address. See our skip tracing services comparison.
Subject-To
A subject-to deal is when an investor takes title to a property while leaving the seller's existing mortgage in place and in the seller's name, making payments on it without formally assuming the loan. It is a creative-finance strategy used when a seller has little equity but needs out of a payment.
TC (Transaction Coordinator)
A transaction coordinator (TC) manages the paperwork, deadlines, and communication between all parties on a real estate deal from contract to closing, so the wholesaler or agent can focus on sourcing the next lead.
TCPA (Telephone Consumer Protection Act)
The TCPA is the federal law governing telemarketing calls and texts, including consent requirements, do-not-call rules, and restrictions on autodialed or prerecorded messages. Wholesalers and cold callers are responsible for TCPA-compliant outreach. See is texting sellers legal under TCPA.
Title Company
A title company verifies a property has a clear, transferable title, handles the closing paperwork, and issues title insurance. Both traditional sales and wholesale double closes go through a title company to finalize the transfer.
Wholesaling (Real Estate)
Real estate wholesaling is putting a property under contract at a below-market price, then selling (assigning) that contract to a cash buyer for a fee, without ever taking ownership of the property yourself. See Pipelio for wholesalers.
Wholetailing
Wholetailing is buying a property, doing light or no repairs, then reselling it on the open market (MLS) instead of assigning it to a cash buyer. It sits between wholesaling and a full fix-and-flip, usually with a bigger profit than a straight assignment.