FAQ
Frequently Asked Questions
Whether you're new to wholesaling or you've been in the business for years, here are answers to the most common questions we hear about our model, our process, and how we work with deal sources and buyers.
Wholesaling Basics
General Wholesaling Questions
What is real estate wholesaling?
Real estate wholesaling is a strategy where a wholesaler contracts a property from a seller and then assigns that contract (or resells the property) to an end buyer, typically an investor, without doing any renovations. The wholesaler earns the difference between the contract price and the sale price. It allows investors to acquire off-market deals they wouldn't find on the MLS, and it allows deal finders to profit from sourcing without needing capital to buy and rehab. Learn more on our what is real estate wholesaling page.
How does wholesale disposition work?
Wholesale disposition is the process of marketing a wholesale deal to end buyers and getting it sold. Once a deal source has a property under contract, a disposition company packages the deal with photos, comps, and pricing, then distributes it to qualified investors who match the property's profile. The dispo team handles buyer inquiries, negotiates offers, and coordinates through closing. See our how it works page for a step-by-step breakdown of our process.
What is an assignment fee?
An assignment fee is the profit a wholesaler earns when they assign their purchase contract to an end buyer. For example, if a wholesaler has a property under contract at $100,000 and assigns it to an investor for $115,000, the assignment fee is $15,000. In a transparent assignment, this fee is visible on the closing statement to all parties involved. At Flat Rate Wholesale, our flat fee is always clearly disclosed rather than hidden inside a spread.
What is a double close and why do wholesalers use it?
A double close (also called a simultaneous close or back-to-back closing) is when the wholesaler actually purchases the property from the seller and then immediately resells it to the end buyer in two separate transactions. Wholesalers typically use a double close to hide the size of their spread from both the seller and the buyer. This adds approximately 3% in additional closing costs that would not exist in a simple assignment. Because our model is built on full transparency, we rarely need to double close, saving everyone money.
What is ARV (After Repair Value)?
ARV stands for After Repair Value, which is the estimated market value of a property after all renovations and repairs have been completed. It is calculated by analyzing comparable recently sold properties in similar condition in the same area. ARV is the most important number in a wholesale deal because it determines what a flip investor can sell the property for, which directly affects what they can afford to pay for it. Visit our glossary for more real estate investing terms.
What is a buy box?
A buy box is the set of criteria an investor uses to define what properties they are willing to purchase. This typically includes geographic area, property type, price range, minimum ARV, maximum repair budget, and target return metrics like cap rate or cash-on-cash return. At Flat Rate Wholesale, we maintain detailed buy box data for every investor in our network so we can match deals to the right buyers instead of blasting to a generic list.
What is proof of funds (POF)?
Proof of funds is documentation that demonstrates a buyer has the financial capacity to close on a purchase. This can include bank statements, a letter from a hard money lender, or verification of a credit line. Every investor in our network is verified through documented real estate transaction history. When buyers submit offers, we encourage proof of funds to ensure they can close, but our verification is based on demonstrated buying activity, not just financial documentation.
Our Model
About Flat Rate Wholesale
What is flat rate wholesaling?
Flat rate wholesaling is a disposition model where the wholesaler charges a fixed fee for their services rather than taking a variable spread on the deal. Instead of earning more by paying the deal source less, the flat rate wholesaler earns the same fee regardless of the deal's profit margin. This eliminates the fundamental conflict of interest in traditional wholesaling and aligns the wholesaler's incentives with the deal source's. Learn more on our what is flat rate wholesaling page.
How is Flat Rate Wholesale different from traditional wholesalers?
Traditional wholesalers profit from the spread between what they pay for a deal and what they sell it for, which creates a direct incentive to underpay deal sources and overprice to buyers. We charge a flat $5,000 fee instead, so our compensation is the same whether the deal spread is $15,000 or $50,000. On deals where the total spread is $10,000 or less, we reduce our fee so the deal source always keeps more. We also provide full transparency into the entire process — you see every marketing email, every offer, and every line on the closing statement. Most traditional wholesalers operate as a black box where deal sources have no visibility into what happens after they hand off a deal.
What is your flat fee?
Our standard flat fee is $5,000 per deal. It does not change based on the sale price or profit margin of the deal. On deals where the total spread is $10,000 or less, we reduce our fee so that the deal source always takes home more than we do. Contact us to discuss specifics for your deal.
What if the total spread is $10,000 or less?
On deals where the total spread is $10,000 or less, we reduce our fee below the standard $5,000 so that the deal source always takes home more than we do. If a deal is too thin to support any disposition fee, we will tell you upfront rather than take on a deal that doesn't work for everyone involved. See how it works for more on our deal intake process.
What visibility do deal sources get into the process?
Complete visibility. You see exactly what marketing materials are sent, how many investors received, opened, and clicked the emails, every inquiry and showing request, all buyer feedback, every offer with full terms, and both sides of the closing statement. We built our platform specifically to give deal sources the transparency that traditional wholesalers withhold.
How do you market deals to buyers?
We build a professional marketing package for every deal that includes photos, property data, comps, repair estimates, and pricing analysis. Instead of blasting this to a generic list, we use our buyer intelligence data to identify investors whose buy box criteria match the specific property. Distribution goes through targeted email campaigns, InvestorLift, and direct outreach to high-probability buyers in that market.
How many investors are in your buyer network?
We have over 100,000 verified investors in our buyer network, all verified through real estate transaction history and active buying criteria. Beyond the raw number, what matters is the depth of our data on each buyer — we track buy boxes, purchase history, strategy preferences, price ranges, and activity levels so we can match the right deal to the right investor rather than blasting to the entire list.
What markets do you operate in?
We currently operate in 4 Texas markets: Houston, Austin, San Antonio, and Dallas-Fort Worth. We are expanding into additional markets soon. Contact us if you have deals in a market not listed here.
How do I submit a deal?
You can submit a deal through our contact page or by calling us directly at (832) 280-1281. We need the property address, access information, closing date, and photos if available. If you don't have photos, we can arrange to get them. We will review the deal and confirm our flat fee before beginning any work.
How do I join your buyer list?
Visit our buyers page and submit your information including your target markets, property types, price ranges, and investment strategy. You will need to provide proof of funds to be added to our active buyer list. Once verified, you will receive deals matched to your buy box criteria, and our team personally reaches out on the best-fit opportunities.
What are the requirements to be a buyer?
All buyers are verified through documented purchase history demonstrating active investment in real estate. This can include county records of recent acquisitions, transaction history, or other evidence of active buying. We also ask for your buy box criteria so we can send you relevant deals rather than wasting your time with properties that don't fit your strategy.
How long does the disposition process typically take?
Most deals receive offers within the first 48 to 72 hours of marketing, and the typical timeline from deal submission to closing is 14 to 30 days depending on the market, property condition, and buyer financing. We work within your closing timeline and will communicate any concerns about timing upfront during deal intake. See the full step-by-step process for more detail.
Still Have Questions?
We're happy to talk through anything — whether you're looking to submit a deal, join our buyer list, or just want to understand the model better.