The wholesaler begins by identifying a property and entering into a purchase agreement with the seller. This agreement grants the wholesaler the right to buy the property at a specified price, often below market value.

The wholesaler then markets the property to potential investors, typically at a higher price than the original agreement with the seller. Once an investor expresses interest, the wholesaler enters into a separate purchase agreement with the investor.

The wholesaler then markets the property to potential investors, typically at a higher price than the original agreement with the seller. Once an investor expresses interest, the wholesaler enters into a separate purchase agreement with the investor.

On the closing day, two transactions occur back-to-back. In the first transaction, the wholesaler purchases the property from the seller using funds (often provided by transactional funding). In the second transaction, the wholesaler sells the property to the investor at the agreed-upon higher price.