How Wholesaling Really Works?
What Wholesalers Don’t Tell You
A wholesaler is someone who does not plan to buy your home. Instead, they make money by putting your home under contract at a low price and selling that contract to an investor — often without ever touching the property.
They profit whether the investor makes money or not.
You lose equity either way.
The Problem
What Is a Wholesaler?
A wholesaler:
Signs a contract to purchase your home far below market value
Never intends to close on the home
Sells your contract to an out‑of‑state or out‑of‑country investor
Collects a fee for being the “middleman”
They don’t renovate.
They don’t improve the home.
They don’t take on risk.
They simply flip your contract for profit
How the Wholesaler Model Works
Step 1 — Get Your Home Under Contract (Cheap)
They offer a low price and frame it as:
“Fast cash, no repairs, no hassle.”
Step 2 — Assign Your Contract to an Investor
They “shop your house” to a pool of investors.
Wholesalers never fix the house.
They never invest in it.
They never improve it.
They simply flip the contract
Step 3 — Collect a Fee
When an investor agrees to buy the contract, wholesalers collect a fee — usually $5,000 to $30,000.
Step 4 — The Investor Profits After Renovation
After repairs, investors typically aim for a 25%–30% profit margin when selling your home on the retail market.
Where Homeowners Lose Out
When you sell to a wholesaler, you lose:
The wholesaler’s profit ($5,000–$30,000)
The investor’s profit (often tens of thousands more)
The increase in value created through repairs
The ability to sell on the retail market, where buyers pay the most
In short:
Everyone wins — except the homeowner.
Gateway Home Renewal Difference
We flip the script so you keep most of the value — not the middlemen.
You get two clear, transparent options:
Option A
Renovate Before You Sell
We oversee strategic updates that increase your home’s value.
You get to sell for more — and keep that additional equity.
Option B
Sell Directly to Us
If you prefer a fast sale:
We buy as‑is
We handle the renovation
We resell the home
We keep a reasonable, transparent margin
You still walk away with more than a typical wholesale offer
Why Homeowners Choose Us Instead of Wholesalers
You get two clear, transparent options:
Real renovation insight (not pressure tactics)
Access to Realtors who understand ROI
Clear as‑is and after‑renovation values
Optional financing for renovations
No hidden fees or assignment spreads
Local St. Louis team — not out‑of-state investors
Why Homeowners Choose Us Instead of Wholesalers
You get two clear, transparent options:
Gateway Home Renewal Model
Option A — Renovate, Then Sell
We manage strategic upgrades
You sell for top dollar
You keep the majority of the new equity
We earn a standard project management margin
Option B — Sell Direct to Us
We give a fair as‑is offer
You skip repairs
We earn a reasonable margin after renovation
You walk away with more than a wholesale deal
Wholesaler Model
Signs your home under contract
Sells your contract for a fee
Makes $5k–$30k with no work
Investor then makes 25%–30% profit
You get the lowest amount
Real Results
Where does the equity go?
Side-by-side chart
SOUTH COUNTY MISSOURI HOME
Pre Renovation Value: $245,000
Renovation Price: $136,000
Selling Price: $530,500
ADDITIONAL PROFIT🡪 $149,500
Before
After
AFTON MISSOURI HOME
Pre Renovation Value: $290,000
Renovation Price: $111,500
Selling Price: $485,000
ADDITIONAL PROFIT🡪 $83,500
Before
After
Ready to See Your Real Options?
Get a free, no‑pressure evaluation.
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Frequently Asked Questions
What makes Gateway Home Renewal different from wholesalers?
Wholesalers try to lock your home under market value and sell your contract for a fee. Gateway provides transparent numbers, real renovation insight, and two clear options: renovate before selling or receive a fair as‑is offer. You keep more equity, and you stay in control.
Do I have to renovate before selling?
No. Renovation is optional. If it makes financial sense, we’ll show you the projected value after improvements. If you prefer a faster sale, we can make a fair as‑is offer with no pressure and no hidden fees.
What types of homes do you work with?
We specialize in vacant or easily vacated properties, including inherited homes, second homes, and rental properties after tenants move out. We do not work on owner‑occupied homes because our process requires a clear, open workspace for efficient renovations
How does renovation financing work?
If your property has equity but you don’t have cash on hand, we can connect you with lending partners who offer renovation financing. This allows you to complete value‑boosting updates without paying upfront.
How do I know which option is best for me?
We provide a free, no‑pressure evaluation that includes:
1. Your home’s current estimated value
2. Projected renovated value
3. Recommended renovation scope
4. Your net numbers for both options
You’ll see exactly how much equity you can keep so you can make a confident, informed decision.
Proudly serving St. Louis and surrounding areas
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