Breaking down the critical choice between direct-to-seller and on-market deals in wholesaling real estate. Both strategies offer distinct advantages, but your choice will significantly impact your profit margins, scalability, and overall business success.

• Direct-to-seller delivers bigger spreads with assignment fees potentially reaching $40k-$50k
• Less competition with direct access to motivated sellers means better negotiation opportunities
• Building trust and rapport directly with sellers creates stronger deals and opens creative options
• Flexibility to offer various solutions including subject-to arrangements, seller financing, and customized closing timelines
• Marketing costs represent the biggest hurdle for direct-to-seller strategies
• Time-consuming process requiring significant follow-up and handling rejections
• Title issues and seller misrepresentations can derail direct deals
• On-market provides easy, free access to motivated sellers through MLS, Zillow, and Redfin
• Property photos, condition details, and comparable sales data already provided with on-market listings
• Building relationships with real estate agents can lead to consistent future deal flow
• Competition significantly higher with on-market properties
• Smaller profit margins typically capped around $10k
• Agents act as gatekeepers limiting direct seller communication
• Less flexibility in deal structure with more regulatory restrictions

Start with the strategy that matches your current resources – if you have no marketing budget, begin with on-market. Once you've tested both approaches, focus deeply on whichever method suits your personality and business goals best.