Welcome to Sanford REI Wholesaling & Lease Options

At Sanford REI, we believe that real estate is one of the most powerful vehicles for building wealth, and wholesaling is one of the best ways to get going if you have little money. Whether you’re new to investing or a seasoned pro, understanding how wholesaling and lease options work can help you maximize opportunities in today’s market.

🏡 Wholesaling: Flipping Contracts, Not Houses

Wholesaling in real estate is often described as "flipping paper." Instead of purchasing and renovating a property, you contract it and then assign that contract to an end buyer—usually an investor—before closing. It's a fast, low-capital strategy that can be highly profitable when done right.

A Typical Wholesaling Deal:

  1. A wholesaler either signs a contract to purchase a property for $80,000 (other options too).

  2. The property needs about $40,000 in repairs, with an After Repair Value (ARV) of $190,000.

  3. The wholesaler markets the deal to an end buyer or investor who is willing to pay the wholesaler $90,000.

  4. By assigning the contract to that end buyer/investor, the wholesaler earns a $10,000 assignment fee—without ever closing on the home.

  5. The investor then renovates, sells the property for $190,000, and nets around $100k before deducting for carry costs, finance charges, etc.

While some wholesalers apply a flat fee (like $5,000 per deal), we believe the fee should reflect the scale and profitability of the deal. Whether it’s a $90K property or a $900K property, the wholesale fee should be flexible—as long as the end investor can still profit.

⚠️ A Word of Caution: Be Wary of Clueless Wholesalers and Their Bad Numbers

Unfortunately, many wholesalers inflate the ARV while they lowball the rehab costs to make deals look better than they are.

Here is what happens with most Wholesalers:

  • A misleading wholesaler claims the ARV (After Repair Value) is $200K, when the ARV is REALLY $150k.

  • They then say the rehab costs are $50K, when the REAL Rehab Costs are $90k.

  • This makes the End Buyer/Investor believe they have $150k of possible gross profit when in fact, they only have $60k in gross profit!

THIS IS WHY YOU NEED A MORE ACCURATE "ARV" and A MORE ACCURATE REHAB BUDGET BEFORE EVER ACCEPTING THE WHOLESALER's NUMBERS.

📋 Wholesaling Best Practices

The key to a secure wholesale deal is including a contingency clause in your contract. This allows you to walk away if you can’t find a buyer before the closing date—protecting you from financial risk.

If the seller doesn’t agree to the contingency? You still have the option to flip the property yourself.

Compared to traditional flipping, wholesaling:

  • Involves less time and fewer moving parts.

  • Requires little to no renovation work.

  • Demands far less upfront capital.

  • Poses lower financial risk.

  • Works for the End Buyer/Investor ONLY WHEN there is an ACCURATE "ARV" and "REHAB COSTS" list from someone like John!

📣 Build Your Network, Build Your Success

As with any business, relationships matter. The most successful wholesalers have a solid list of ready investors AND are ACCURATE with their "ARVs" and "Rehab Budget"! If you're a real estate investor, flipper, or wholesaler interested in networking, let’s connect! Send your full contact information and how you determine your ARV and Rehab Costs to our EMail below!

John Sanford, Managing Member

Sanford Real Estate & Investment, LLC

No Graphs, No Pie Charts, No Bullshit.

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Information on this page is not an offer or a solicitation to sell or purchase securities. Statements, descriptions, and data on this page are for informational purposes only and relate to an investment opportunity which may be offered in the future. No offer or solicitation will be made until you contact us first and the necessary final documentation and agreements have been delivered to you. Please consult an accountant, financial planner, tax attorney and/or other tax, investment and legal counsel for advice before investing any of your money.

© 2014 Sanford Real Estate & Investment, LLC and www.SanfordREI.com. All rights reserved. No part of this website may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher John Sanford, Managing Member of Sanford Real Estate & Investment, LLC.