How to Get a Property Under Contract (And What “Assignable Contract” Actually Means)

Getting a property “under contract” means a seller has signed a legally binding agreement to sell you the property at an agreed price — but for wholesalers, this isn’t the end goal. It’s the starting point that makes the entire wholesale deal possible.

What “Under Contract” Actually Means

Once a seller signs a purchase agreement, the property is under contract — the seller has agreed to sell, and you (the buyer, in this case a wholesaler) now have a binding right to purchase at the agreed terms. This is what creates the asset a wholesaler actually sells: not the property itself, but the right to purchase it.

What Is an Assignable Contract?

An assignable contract is a purchase agreement that explicitly allows the buyer to transfer (“assign”) their rights and obligations under the contract to a third party — in wholesaling, this is how the deal gets passed to a cash buyer without the wholesaler ever actually purchasing the property themselves.

The key language that makes this possible is naming the buyer as “[Your Name] and/or assigns” on the contract, rather than just your name alone. This single phrase is what legally allows the assignment to happen.

The Step-by-Step Process

1. Confirm Real Motivation First

Before drafting any contract, confirm the seller’s actual motivation, timeline, and price expectations — signing a contract with an unmotivated seller wastes time and can create legal complications if they later want to back out.

2. Agree on Price and Terms

Negotiate a price that leaves enough margin for your assignment fee once sold to a cash buyer, while still being attractive enough that the seller feels it’s a fair, fast solution to their situation.

3. Use a Proper Purchase Agreement With Assignment Language

The contract must include the “and/or assigns” language, along with standard terms: purchase price, closing timeline, earnest money deposit (often minimal in wholesale deals), and contingencies.

4. Get It Signed — By Both Parties, With Witnesses/Notarization as Required by State

Requirements vary by state, so confirm what’s legally required where the property is located.

5. Market the Contract to Your Cash Buyer List

Once under contract, you market the deal to your cash buyer network — this is where having a reliable, ready list of buyers matters (see: How to Find Cash Buyers for Your Wholesale Deals).

6. Assign the Contract for a Fee

When a cash buyer agrees to the deal, you execute an Assignment of Contract document, transferring your rights to them in exchange for your assignment fee — typically paid at or before closing.

7. Closing

The end buyer closes directly with the original seller, using your assigned contract as the basis for the transaction. You collect your fee, and the deal is complete.

Common Mistakes to Avoid

• Signing a contract without qualifying the seller first — leads to deals that fall apart or sellers who back out.
• Forgetting the “and/or assigns” language — without it, the contract may not be legally assignable at all.
• Overpromising to the seller — being upfront that you may assign the contract to another buyer avoids trust issues later.
• Not knowing your state’s specific disclosure requirements — some states have specific rules around assignment of contracts and wholesaling; check local regulations.

The Bottom Line

Getting a property under contract is really about two things working together: a seller who’s genuinely motivated, and a contract structured correctly to allow assignment. Get both right, and the rest of the wholesale process — finding a buyer, assigning, closing — becomes a repeatable system rather than a one-off scramble.

Getting to the Contract Faster

Every step before the signature — finding the owner, reaching them, and confirming real motivation — takes consistent outreach most investors don’t have time to run themselves. A dedicated appointment setter or virtual assistant handling that qualification step means you’re only stepping in once a seller is ready to talk terms, not spending hours chasing conversations that go nowhere.