If you’ve done wholesale deals before, you know the drill: lock up a property, find a cash buyer, and get it to closing. That’s “dispo” in its classic form, finding an investor to take over your contract.

But when you step into novations, the game changes. Now you’re dealing with the retail market, the MLS, and buyers who have lenders, agents, and inspectors in their corner. The way you dispo a cash deal is very different from the way you dispo a novation deal, and if you treat them the same, you’ll lose deals and credibility.

This guide walks through the key differences between dispo-ing a wholesale cash deal and a novation listing on the open market.

How Dispo Works in a Cash Deal

Cash deals are all about speed and simplicity. Your cash buyers don’t care about granite countertops or mortgage contingencies. They care about numbers, condition, and timeline.

Here’s what dispo looks like in a cash deal:

• You market your contract to your cash buyer list

• You highlight ARV, rehab estimate, and your assignment fee

• Buyers expect to close in 7–14 days, sometimes even faster

• Inspections are quick, often just a walkthrough or a contractor’s eye

• Disclosures are minimal since buyers are taking properties as-is

• Title companies are familiar with assignment paperwork

The dispo role is about connecting the dots: contract in one hand, buyers list in the other.

How Dispo Works in a Novation Deal

Novations put you in the retail space. That means your dispo process has to look like a traditional listing.

Here’s how dispo works on a novation:

• The property is listed on the MLS by a licensed agent

• Buyers are typically families or retail buyers using mortgage financing

• Inspections are detailed, with reports, repair requests, and possible re-inspections

• Lenders and underwriters are involved, adding conditions before closing

• You’re coordinating with the seller, contractors, and agents all at once

• The timeline is longer, 30 to 60 days is common

• Paperwork has to meet MLS, lender, and state compliance rules

Your dispo job here isn’t about blasting emails to cash buyers. It’s about making the transaction look and feel like a normal retail sale.

Key Differences Between Cash and Novation Dispo

1. Buyer Type

• Cash Deals: Investors, flippers, landlords, hedge funds

• Novation Deals: Retail buyers with mortgage approvals, sometimes FHA/VA buyers

Why it matters: Retail buyers demand repairs, inspections, and disclosures. Cash buyers don’t.

2. Marketing Channels

• Cash Deals: Email blasts, text lists, investor Facebook groups, local REI meetups

• Novation Deals: MLS, Zillow, Realtor.com, buyer’s agents

Why it matters: A cash dispo is about speed and targeting. A novation dispo is about exposure and presentation.

3. Timeline

• Cash Deals: 7–14 days

• Novation Deals: 30–60+ days

Why it matters: Cash deals lock up your capital short-term. Novations require patience but often bring higher spreads.

4. Condition and Repairs

• Cash Deals: “As-is,” no repairs

• Novation Deals: Buyer inspections drive repair negotiations and lender-required fixes

Why it matters: Repairs cut into your timeline and margins, but they’re part of retail dispo.

5. Paperwork and Compliance

• Cash Deals: Assignment contract, simple addenda

• Novation Deals: Novation agreement, listing agreement, MLS disclosures, lender documents

Why it matters: Retail compliance is tighter. Mistakes here can kill your deal.

The Dispo Skillset Shift

To be successful with novations, wholesalers have to learn a new skillset.

• Instead of just building a buyer’s list, you need to build relationships with listing agents

• Instead of focusing on spreads alone, you have to manage seller expectations and buyer requests

• Instead of quick closings, you need systems to track long timelines and multiple moving parts

It’s a different game, but one that opens up deals cash buyers would never touch.

Example Scenario: Cash vs. Novation

Let’s say you lock up a property worth $220k after repair for $150k.

• Cash Dispo Path: You send it to your buyer’s list at $160k. An investor agrees, closes in 10 days. You make $10k.

• Novation Dispo Path: You work with the seller, sign a novation, list on MLS for $219k. Retail buyer comes in at $215k. After agent commissions, repairs, and closing costs, you net $35k.

Same property. Two very different dispo processes.

When to Use Cash Dispo vs. Novation Dispo

• Use cash dispo when the property needs heavy rehab, the seller demands lightning-fast closing, or you’re in a hot investor market.

• Use novation dispo when the property is livable, the seller is open to some timeline flexibility, and retail buyers would pay significantly more than cash buyers.

Common Mistakes in Novation Dispo

• Not setting clear seller expectations about inspections and access

• Underestimating repair costs after inspection reports

• Ignoring disclosure requirements

• Forgetting that retail buyers move more slowly than cash buyers

• Failing to coordinate with the listing agent on the communication flow

These are the mistakes that make wholesalers swear off novations, but they’re avoidable.

Conclusion

Dispo-ing a cash deal is like running a sprint. Dispo-ing a novation deal is like running a marathon. The sprint pays quick, but the marathon usually pays more.

If you want to stay competitive in today’s market, you need both tools. Cash dispo keeps your pipeline fast-moving. Novation dispo opens doors to properties and profits you’d miss otherwise.

The trick isn’t choosing one or the other. It’s knowing when each strategy makes the most sense, and being able to switch gears when the deal demands it.