How to Wholesale Real Estate in Arizona (2024 Updated)

In this article, you will find essential information to begin wholesaling houses in Arizona.

You will gain knowledge about the diverse contract types required and effective marketing approaches.

Additionally, we will provide supplementary materials to help you begin your real estate wholesaling enterprise.

Continue reading to explore how to commence your own prosperous real estate wholesaling business in Arizona.

If you’re new to real estate investing and wondering if this is allowed, the answer is yes. It is legal to wholesale real estate in Arizona, as long as you comply with the legal requirements.

However, it’s crucial to be aware of the potential risks of wholesaling real estate and to understand Arizona real estate wholesaling laws.

Using improper language while promoting your contracts to prospective buyers is a significant hazard when it comes to wholesaling real estate.

To gain a better understanding of the relevant laws in Arizona, it’s recommended to review the rules and regulations established by the Arizona Department of Real Estate.

Keep in mind that wholesalers can only promote the rights and obligations associated with a contract to purchase real estate, while only licensed Arizona real estate agents or property owners can market a property.

To address this issue, it may be beneficial to seek advice from the best Arizona real estate attorneys.

These professionals can help you create or evaluate templates for your purchase agreement and the assignment contract.

There are two primary methods for wholesaling houses in Arizona: contract assignment and double closing.

In addition, advancements in technology have made it possible to conduct the real estate wholesaling process remotely, which is known as virtual wholesaling.

This means that you can now complete deals from the convenience of your own home.

Contract Assignment

Many new investors typically begin by learning about the contract assignment technique when exploring how to wholesale houses in Arizona.

To begin with, you must acquire a purchase contract that has been signed by the motivated seller and yourself, as if you were the genuine purchaser, but with no commitment to purchase the property.

The agreement ought to have a clause that permits you to assign it to a third party, who is the eventual purchaser.

Once getting the house under contract and identifying an eventual buyer, you will need to obtain the signatures of both the seller and the eventual buyer on an assignment contract.

This is the point at which you relinquish your entitlement to acquire the property to the investor who intends to make the purchase.

As compensation, you will be paid an assignment fee which constitutes your profit.

This payment is usually an earnest money deposit that ranges between one to two thousand dollars, and can be refundable.

By utilizing this approach, you can sidestep the requirement for funds necessary to buy the property.

Double Closing

In addition to the commonly used contract assignment method, it’s important to have a good understanding of the double closing method in order to grasp all the aspects of everything you need to know about wholesaling real estate.

The double closing approach involves purchasing the property initially and then reselling it to another buyer in a separate transaction.

This method is often used by wholesalers who receive a significant assignment fee and want to keep their earnings hidden from both the seller and the ultimate buyer.

When creating your Arizona real estate wholesaling checklist, one of the top priorities should be “finding a wholesale-friendly title company”.

It’s crucial to work with a reputable title company that understands double closing deals when utilizing this approach.

However, there are pros and cons of real estate wholesaling when using this strategy.

One benefit is the ability to keep your profit confidential from other parties involved in the transaction.

On the other hand, a disadvantage is that you may require transactional funding if you don’t have the necessary funds to make the purchase.

In this case, you can seek assistance from the best Arizona hard money lenders.

Virtual Wholesaling

If you’re not physically present in the state, you can still participate in virtual wholesaling in Arizona.

Working with Arizona investor friendly real estate agents can help with communication between all parties involved, including yourself, the buyer, and the seller.

Before beginning, it’s important to remember two key factors. Firstly, to facilitate virtual closings, it’s crucial to work with an Arizona wholesale friendly title company.

In addition, it’s possible to hire a home inspector in Arizona who can assess the property and generate a comprehensive report, thereby allowing you to analyze real estate deals remotely.

It’s recommended to include an inspection contingency clause in the contract when using this approach. This allows an inspector to enter the property and provide accurate estimates.

Contracts can have signatures added to them by using electronic signature software such as DocuSign.

You need to possess a thorough comprehension of wholesaling real estate step-by-step. This is especially important if you are not physically present at the site.

To thrive in Arizona, you must comprehend how to find houses to wholesale at a price that is reasonable enough to appeal to potential buyers.

Sellers who are prepared to sell their properties at a reduced price are referred to as motivated sellers.

Different types of motivated sellers often require immediate cash and are unable to invest the time or money necessary to repair the property or settle legal issues associated with it.

This makes it impossible for them to sell through conventional means.

To help you find distressed houses, we will examine three techniques.

#1 Buy Arizona Distressed Seller Leads

To help you in finding motivated sellers, there are firms that specialize in advertising and other marketing methods.

Purchasing leads from them is seen as the most direct method of lead acquisition.

These companies may charge a fee per lead or a subscription fee. It’s important to ensure they have a good reputation and a proven track record of generating leads.

These companies are knowledgeable in the following types of leads:

• expired MLS listings
• absentee property owners
• pre-foreclosure properties
• probate homes, and others

It’s typical that not all leads are converted successfully, and the quality of leads can vary.

Additionally, there are real estate wholesaling software tools that provide lead acquisition functionality along with other features such as website templates, CRM, and more.

You may consider REB Leads when searching for lead generation services for real estate investors.

The program is designed to provide wholesalers with the most reasonably priced and high-quality motivated seller leads available in the market. Sign up for it now.

#2 Hire an Agency to Do Marketing for You

An agency that specializes in real estate investor marketing can handle wholesale real estate lead generation and other tasks on your behalf.

To allow you to concentrate on other aspects of your business, digital marketing agencies will collaborate with you to create a plan that suits your budget and manage your campaigns.

The majority of agencies require wholesalers to pay a regular fee every month in order to handle a range of marketing campaigns.

Digital marketing agencies provide a range of services, including content creation, real estate website design, real estate investing SEO (search engine optimization), social media marketing, and PPC ad management for real estate investors.

It may take some time to generate leads by using strategies like search engine optimization and content development.

Digital advertising provides nearly immediate results, but it’s more expensive.

If you are leaning towards hiring an agency, you have to be able to sift through an overwhelming sea of bad companies to find one that will serve you as advertised.

But since you are our reader, our team has already done all the heavy lifting for you. We’ve polled and surveyed thousands of our real estate wholesaler members and the overwhelming majority recommended Magnyfi, run by Jacob Hicks.

The service provided by Magnyfi is not cheap. But it is worth it if you are serious about growing your real estate wholesaling business.

Go ahead and watch Jacob’s video presentation on the Magnyfi profile page discussing the methodical process they have been successfully helping other investors grow their businesses.

#3 Do Your Own Marketing by Yourself

To promote your business without breaking the bank, it may be necessary to handle marketing tasks on your own.

Creating a professional real estate investor website for generating motivated seller leads is a crucial first step.

Choosing a website solution that allows you to create a user-friendly platform is essential, and there are various website builders for real estate investors.

The website can also serve as a tool to collect leads from social media and Google.

Besides digital methods, you can also use offline techniques such as sending real estate wholesaling direct mail, inspecting public records, exploring potential properties while driving around, employing bandit signs, collaborating with other real estate experts, and more.

To market Arizona wholesale properties, it is important to have a list of potential buyers who are interested in purchasing properties with cash.

You can find real estate investors either online or offline. Their contacts should be compiled into a list. Once the list has been created, it is essential to establish a relationship with them.

To attract the attention of these cash buyers, different marketing strategies for wholesaling real estate can be utilized.

It is recommended to create separate lists for each category of cash buyer to ensure precise targeting.

There are different types of real estate investors, including hedge funds, real estate investment companies, and individual investors, each with their own specific purchasing criteria, who may be interested in under-contract properties.

Build Your Own Cash Buyers List

Networking is a viable option for people with limited financial resources but who want to create their own list of Arizona real estate cash buyers.

You can connect with reliable vendors in Arizona who specialize in working with or for real estate investors.

This may include contractors who specialize in property flips or Arizona lenders who collaborate with Arizona real estate investors.

It’s recommended that you join several online real estate networking groups. You can find these groups on Facebook or forums like BiggerPockets, and they often organize virtual meetings.

Building a cash buyers list doesn’t happen overnight. It’s a continuous process. Fortunately, it can be significantly sped up by Real Estate Bees’ revolutionary invention — Property Marketplace Widget for Wholesalers.

It basically allows you to build your own cash buyers list on autopilot, and it’s the only online tool of this kind on the market.

What’s even more powerful is that this tool lets you syndicate your contracted properties directly to Real Estate Bees’ massive marketplace of wholesale deals for sale in Arizona and instantly reach thousands of potential buyers!

Leverage Other People’s Cash Buyers Lists

Instead of spending time creating your own list of companies that buy houses in Arizona, you can utilize cash buyers lists of other people.

This method can help you quickly grow your business, but the owners of the list may demand up to 50% of your assignment fee.

Successful Arizona real estate wholesalers and other professionals in the industry have built relationships with investors over time.

If you want to avoid giving away half of your profits while using someone else’s cash buyers list, you can use a robust property syndication tool developed by Real Estate Bees to help wholesalers with the disposition.

The tool lets wholesalers leverage Real Estate Bees’ extensive list of Arizona cash home buyers to blast their contracted properties for free.

To take advantage of this cutting-edge functionality, create your free account and list your contracted properties.

Contract Assignment

To wholesale houses in Arizona, it is important to have two contracts signed.

The first is the contract to purchase real estate. The initial purchase contract outlines the purchase price, address, the seller’s information, and the purchase terms.

It is signed by both you and the seller.

The second contract is the assignment contract, which is signed by both the seller and the end buyer. This agreement transfers your right to buy the property to the investor who pays you the assignment fee.

By having both contracts signed, you are being transparent with both parties and indicating that you are not purchasing the property yourself.

The title company will require copies of both contracts to finalize the transaction.

Double Closing

Wholesalers often use double closings in situations where they don’t want to disclose their profit to the seller or end buyer.

To perform a double closing, you must present two contracts to the title company:

1. A contract for the real estate purchase made by the wholesaler from the seller, and
2. A contract for the real estate purchase made by the end buyer from the wholesaler.

If you do not have enough cash to cover the full cost of the house, you will need to obtain transactional funding.

Transactional funding refers to a type of short-term loan, often within one to two days.

This loan enables you to finalize the deal with the seller and then rapidly wrap up the transaction with the ultimate buyer.

Wholesaling with a real estate license can provide added protection for your business even though it is not a legal requirement in Arizona.

If you hold a license, you are authorized to promote a property both as a real estate agent and as a wholesaler.

Nonetheless, in order to acquire a license as a real estate agent, you will be required to affiliate with an Arizona real estate brokerage.

Numerous brokers may not approve of their agents engaging in wholesaling, thus it is essential to interview various brokerages and select one that is receptive to wholesaling.

For further information on obtaining a license, refer to our manual on how to obtain a real estate license in Arizona.

Individuals must be at least 18 years old to enter into legally binding contracts in the United States. However, there is no minimum age requirement specifically for wholesaling real estate in Arizona.

Consequently, sellers and title companies will not engage in transactions with anyone below 18 years old.

However, if you are younger than 18, you can collaborate with another individual who can sign contracts on your behalf.

While it is not mandatory to have an LLC to conduct legal wholesale operations in Arizona, it is important to note that having the appropriate business structure can provide an extra layer of protection for your enterprise.

In any real estate asset protection strategy, establishing an LLC or another form of corporation is an essential element.

As an LLC, you will be eligible for business loans that are not available to individual wholesalers.

Opting for an LLC also grants you tax benefits that are not available when operating under your own name.

Additionally, operating as an LLC can give your business a more professional appearance, which can increase your credibility within the Arizona real estate investing community.

This can also make you appear more trustworthy to home sellers who are considering doing business with you.

Due to its affordability, wholesaling is a popular starting point for many real estate investors.

To locate distressed sellers and end buyers, you will need to spend some money on marketing, but we’ve previously discussed several methods to minimize these expenses.

You’ll need to budget for an earnest money deposit of $1,000 to $2,000. And, unless you have the full cash amount to buy the property, you’ll need transactional funding if you wish to double-close.

Fortunately, obtaining transactional funding is relatively easy since it’s a short-term loan that doesn’t require a high credit score or employment history.

If you’re looking for the best transactional funding in Arizona, utilize the “request financing” form on Real Estate Bees to get quotes and compare rates from multiple lenders with just a few clicks.

The potential profit you can earn from wholesaling real estate in Arizona is directly proportional to the amount of effort you put into it.

As an example, a typical property in its community that costs $150,000 could generate an average assignment fee ranging from $10,000 to $15,000.

The amount of profit beyond this range is determined by how quickly you can expand your business.

The quality of the market for wholesaling real estate in Arizona is primarily determined by the city or neighborhood where you intend to conduct your business.

However, you can obtain a broad overview of the Arizona real estate investing market trends to gain a general understanding.

There are several cities in Arizona that are considered to be the best for real estate wholesaling.

These cities offer a combination of strong economic growth, population growth, and affordable housing markets, making them a good fit for real estate investors and wholesalers.

Here are some of the best cities to wholesale real estate in Arizona:

1. Phoenix AZ
2. Tucson AZ
3. Mesa AZ
4. Chandler AZ
5. Scottsdale AZ
6. Gilbert AZ
7. Glendale AZ
8. Tempe AZ
9. Peoria AZ
10. Surprise AZ

Although we have covered the fundamentals of real estate wholesaling for beginners in Arizona, it is advisable to gain more knowledge before taking the plunge.

Here are some of the most effective ways to acquire knowledge on how to become a real estate wholesaler.

Courses

Passionate wholesalers who have gained sufficient knowledge are inclined towards teaching and aiding others in achieving financial independence, to the extent of designing complete educational programs.

Nonetheless, there is a large number of dishonest individuals who intend to take advantage of inexperienced and unsuspecting wholesalers.

To locate the most beneficial courses, we recommend referring to the list of genuine real estate wholesaling courses provided by Real Estate Bees.

Real Estate Wholesaling Mentors

Working with the help of an experienced professional can prevent costly errors and keep you on course and attentive.

To receive detailed instruction, we strongly suggest engaging the services of a real estate wholesaling mentor.

You will be paired with the best Arizona real estate investment mentors or coaches.

They will assist you in creating a business plan, setting achievable goals, and selecting effective marketing strategies.

Books

To learn about wholesaling real estate, reading books is an excellent and economical option. You can explore the list of the best books on real estate wholesaling for more options.

Investor Clubs

In Arizona, there are numerous local investor clubs where you can learn from experienced members who have direct involvement in the field.

Attending such clubs can aid you to find cash buyers for wholesaling real estate.

Joining one of these clubs can be advantageous as many seasoned investors are enthusiastic about assisting others, and you may come across someone who can help you refine your business and achieve profitability rapidly.

For a list of reliable clubs to join, you can refer to Real Estate Bees’ compilation of real estate investor clubs in Arizona.

___

If you want to contribute your expert advice on a topic of your expertise, feel free to apply to our Expert Contributor Program.

___

About the Author

With over 20+ years of experience in real estate investment and renovation, Brian Robbins brings extensive knowledge and innovative solutions to the HouseCashin team. Over the years Brian has been involved in over 300 transactions of income producing properties across the US. Along with his passion for real estate, Brian brings with him a deep understanding of real estate risks and financing.