The Complete Wholesale Pipeline
Wholesaling distressed properties is a process, not an event. It starts with a data signal and ends with an assignment fee in your bank account. Between those two points are a series of well-defined steps that, when executed consistently, produce predictable deal flow.
This guide walks you through the entire workflow using the [Austin Signals dashboard](/) as your primary data source. Every step includes the specific actions to take, the tools you'll use, and the metrics to track.
Step 1: Source the Lead (Day 0)
The Signal
Your daily email alert from Austin Signals notifies you that a new property matching your criteria has appeared:
•Address: 4521 Maplewood Dr, Austin TX 78745
•Intelligence Score: 72
•Signals: Lis pendens filed 3 days ago, 2 years tax delinquent ($6,800 owed), one active code violation (roof damage), absentee owner (mailing address in Dallas)
•Property: 3BR/2BA, 1,420 sqft, built 1988, lot 0.18 acres
•Estimated market value: $365,000
•Estimated mortgage balance: $218,000
•Estimated equity: $147,000
This is a textbook high-quality lead. Multiple overlapping distress signals, significant equity (the owner has $147,000 to protect), and an absentee owner who may be motivated to liquidate rather than manage the situation from 200 miles away.
Your Action
Log the property in your CRM. Note the Intelligence Score, key signals, and estimated equity. This property moves immediately to Tier 1 — contact today.
Step 2: Qualify and Research (Day 0-1)
Before making contact, spend 10 minutes doing additional research:
Run Comps
Search for recent sales of comparable 3BR/2BA homes in 78745 within a 0.5-mile radius. You're looking for:
•As-is comps: What have similar unrenovated homes sold for?
•Renovated comps (ARV): What do fully updated homes in the same area sell for?
Let's say you find: As-is comps average $340,000. Renovated comps average $395,000.
Estimate Repairs
Based on the property age (1988), the code violation (roof damage), and the permit desert (no permits in 12 years), estimate the repair cost. For a property of this profile: $30,000-$40,000 for roof, HVAC, cosmetic updates, and deferred maintenance.
Calculate Your Numbers
Using the wholesale formula:
•ARV (After Repair Value): $395,000
•Repair estimate: $35,000
•Your wholesale fee target: $20,000
•End-buyer's desired equity (typically 70% of ARV minus repairs): $395,000 x 0.70 - $35,000 = $241,500
•Your maximum offer: $241,500 - $20,000 = $221,500
Round down for negotiating room: Your target offer is $215,000-$225,000.
At an offer of $220,000, the owner would net approximately: $220,000 - $218,000 (mortgage) - $6,800 (back taxes) = -$4,800. Wait — the owner would actually owe money at closing? That means the equity estimate may be off, or the mortgage balance is higher than estimated.
Let's recalculate. If the actual market value is $365,000 and the mortgage balance is $218,000, the owner has $147,000 in gross equity. At an offer of $290,000, the owner nets: $290,000 - $218,000 - $6,800 (taxes) - ~$4,000 (closing costs) = $61,200 in cash.
Your wholesale fee on a $290,000 contract assigned to a buyer at $315,000 would be $25,000.
Does the end-buyer math work? Purchase at $315,000 + $35,000 rehab = $350,000 all-in. ARV of $395,000. That's a $45,000 gross profit (11.4% of ARV) — thin but workable for an experienced flipper.
Adjust as needed. The key is running these numbers BEFORE you make the call.
Step 3: First Contact (Day 1-2)
The owner lives in Dallas. You have a phone number from the dashboard.
Call using the [phone scripts](/blog/first-contact-scripts-pre-foreclosure) we've provided. The key points:
•Introduce yourself as a local Austin investor
•Mention you're interested in properties in the 78745 area
•Ask if selling is something they've considered
•If they engage, listen to their story before discussing numbers
If no answer, leave one voicemail and send a direct mail letter to their Dallas address.
Step 4: The Conversation (Day 2-7)
Let's say the owner calls back. He's a 62-year-old investor who bought the property in 2015 as a rental. The tenant moved out eight months ago, and he hasn't been able to re-lease it because of the roof and cosmetic issues. He's been paying the mortgage from savings but can't sustain it — hence the lis pendens.
He wants to sell but doesn't want to deal with repairs, listing agents, or showings. He just wants to be done with it.
This is exactly the scenario the [win-win approach](/blog/win-win-approach-distressed-properties) was designed for. Present his options transparently:
1.Fix and list: Spend $35,000 on repairs, wait 60-90 days to sell, pay 6% commission. Net: ~$290,000 - $218,000 = $72,000, minus repairs and commissions = ~$40,000-$50,000. Timeline: 4-6 months.
2.Sell to you at $290,000: Close in 14 days, no repairs, no commissions. Net: ~$61,000. Timeline: 2 weeks.
The owner gives up ~$10,000-$15,000 compared to the best-case listing scenario, but gains certainty, speed, and zero hassle. For a 62-year-old who's been bleeding money for eight months, that trade-off often makes sense.
Step 5: Get it Under Contract (Day 3-7)
If the owner accepts your offer:
1.Send a Purchase & Sale Agreement via DocuSign or physical delivery. Use a standard Texas real estate contract (TREC form) with your entity as the buyer.
2.Include an assignment clause: "Buyer may assign this contract to a third party without seller's consent." This is the clause that allows you to wholesale the deal.
3.Set an inspection period of 7-10 days. This gives you time to get inside the property, verify the condition, and line up your end-buyer.
4.Deposit earnest money: Typically $1,000-$5,000, held by a title company.
Step 6: Inspect and Verify (Day 7-14)
During the inspection period:
1.Visit the property (or send a trusted contractor) and verify the repair estimate
2.Order a title search through your title company to confirm the mortgage balance and check for other liens
3.Take photos and video of the entire property — you'll need these for your buyer marketing
If the property is significantly worse than expected or the title has major issues, you can exit during the inspection period and recover your earnest money.
Step 7: Find Your Buyer (Day 7-21)
This step often happens simultaneously with Step 6.
Marketing the Deal
Create a deal package that includes:
•Property address and photos
•Repair estimate and scope of work
•Comparable sales (as-is and ARV)
•Your contract price and assignment fee
•The end-buyer's all-in cost and projected profit
Your Buyer's List
Send the deal package to your buyer's list. If you don't have one yet, start building it:
•Attend local REIA (Real Estate Investors Association) meetings
•Search public records for recent cash purchases in the area — those buyers are potential customers
•Post in local investor Facebook groups and forums
•Check which zip codes have high [cash buyer activity](/blog/cash-buyer-activity-austin) to identify where investor demand is strongest
For a property in 78745 at $315,000 total investment (your contract + assignment fee + their repair budget) with a projected ARV of $395,000, you should have multiple interested buyers.
Step 8: Assign the Contract (Day 14-21)
When a buyer commits:
1.Execute an Assignment of Contract agreement. This transfers your position in the Purchase & Sale Agreement to the end-buyer.
2.The end-buyer deposits their earnest money with the title company.
3.Your assignment fee ($25,000 in this example) is paid at closing — either by the end-buyer directly to you, or through the title company as part of the closing.
Step 9: Close (Day 21-30)
The closing happens between the original seller and your end-buyer, facilitated by the title company:
•The seller receives their net proceeds ($61,200)
•The end-buyer receives the deed
•You receive your assignment fee ($25,000)
Total time from initial signal to closed deal: approximately 21-30 days.
Key Metrics to Track
As you build your wholesale business, track these metrics to optimize your pipeline:
| Metric | Target |
|--------|--------|
| Leads reviewed per week | 20-30 |
| Contacts made per week | 10-15 |
| Conversations with motivated sellers | 2-4 per week |
| Offers made per month | 3-5 |
| Contracts per month | 1-2 |
| Assignment fee average | $15,000-$30,000 |
| Time from signal to close | 21-45 days |
The Compounding Effect
Your first deal takes the longest. You're learning the process, building your buyer's list, and developing your outreach skills. By deal 3-5, the process is streamlined. By deal 10+, you have a machine: daily alerts feed a consistent outreach pipeline, a deep buyer's list means fast disposition, and your per-deal time investment drops significantly while your per-deal profit remains strong.
The [Austin Signals dashboard](/) is the engine that powers the top of that funnel. Every deal starts with a signal. The investors who see those signals first — and act on them fastest — are the ones who build the most profitable wholesale businesses in Austin.
Ready to find your next deal? [Start your 7-day free trial](/trial) and access every distress signal in Travis County.