The Secret Sources Wholesalers Use for High-Margin Flip Deals

In this article, we’re going to pull back the curtain on where wholesalers actually get their best leads, and how you, as a flipper, can outsmart and outmaneuver them to source those deals yourself.

Blogs

Jul 19, 2025

If you're actively flipping houses or thinking about getting into the game, you've probably found yourself wondering:

“Where do wholesalers keep finding these killer off-market deals?”

Wholesalers seem to have a knack for uncovering distressed properties and motivated sellers before anyone else. But here's the thing: it’s not magic. It's a combination of systems, data, hustle, and psychology.

In this article, we’re going to pull back the curtain on where wholesalers actually get their best leads, and how you, as a flipper, can outsmart and outmaneuver them to source those deals yourself.

Why It Pays to Think Like a Wholesaler

Before we dive into the lead sources, let’s get one thing straight:

Wholesalers are flippers without the rehab.
They specialize in finding the deal, not fixing it. Their skill is marketing and negotiation, not construction and project management.

If you want to consistently find profitable flips, you need to borrow their mindset. That means becoming obsessive about:

  • Data

  • Outreach

  • Follow-up

  • Speed

Because wholesalers are beating flippers to the deal before it ever hits the MLS, or even a “For Sale” sign.

Top Lead Sources Wholesalers Use (And How to Compete)

Let’s break down the primary channels wholesalers use to find flip-worthy properties, and how you can intercept, or even outdo, them.

1. Driving for Dollars

This is the old-school, boots-on-the-ground strategy that still works incredibly well. Wholesalers drive through neighborhoods looking for signs of distress:

  • Peeling paint or boarded-up windows

  • Overgrown grass or junk-filled yards

  • Piled-up mail or code enforcement stickers

  • Faded or leaning “For Rent” signs

Once they spot a distressed home, they jot down the address, skip trace the owner, and start the outreach process.

How to Beat Them:

  • Use Google Street View and county property records to do virtual driving for dollars at scale

  • Combine this with USPS change of address data or mail bounce-backs to verify absentee ownership

  • Get creative: look at dumpster rental activity or permits for “stop work” notices to identify stalled projects

2. Absentee Owner Lists

Absentee owners are people who own property but don’t live in it. These are usually landlords, and when a landlord is tired, overleveraged, or burned out, they’re prime to sell.

Wholesalers use tools like PropStream, ListSource, or county assessor data to pull absentee owner lists, especially those who:

  • Live out of state

  • Have owned the property for 10+ years

  • Have multiple properties

  • Have code violations or eviction filings

How to Beat Them:

  • Focus on hyper-local absentee owners who own only 1–2 properties, they’re more likely to sell without a bidding war

  • Filter absentee lists by ZIP code + equity + age of property = motivated, hidden gems

  • Use AI voice drops or ringless voicemail to reach them faster than a wholesaler sending mail

3. Code Violations & City Nuisance Lists

Every city keeps a record of properties cited for issues like:

  • Unmowed lawns

  • Unsafe structures

  • Unpermitted work

  • Trash and debris

  • Squatters or unsafe living conditions

Wholesalers use these public records to create laser-targeted lists of people under pressure, usually from the city itself.

How to Beat Them:

  • Request these lists monthly or quarterly from the local Code Enforcement or Public Works department

  • Sort the list by number of violations or repeat offenders to prioritize urgent sellers

  • Follow up quickly. Most people wait until the fine hits. You want to offer relief before that

4. Probate and Inherited Property

Inherited homes are often in disrepair, mortgage-free, and owned by multiple family members who don’t want to deal with the hassle. That’s why wholesalers love them.

They get these leads by:

  • Pulling probate records from court filings

  • Using paid lead providers like ForeclosuresDaily or AllTheLeads

  • Networking with probate attorneys and estate planners

How to Beat Them:

  • Build a probate agent referral network. They’re often the first to know when someone wants a fast cash offer

  • Use compassion in your messaging: heirs are grieving, not just “motivated sellers”

  • Focus on timing: many wait 2–3 months after the filing to contact. You can reach out at the 30-day mark with a helpful tone

5. Tired Landlords

Post-2020, landlord fatigue is real. Between eviction moratoriums, rising costs, and difficult tenants, many landlords are ready to offload.

Wholesalers use:

  • Eviction court records

  • Rental property registry data

  • Expired rental listings on Zillow or Craigslist

  • Direct mail to aging property owners (50+ years old)

How to Beat Them:

  • Use Facebook and LinkedIn groups for landlords to start conversations

  • Offer creative financing or tenant-occupied sales to make it frictionless

  • Create a short “Is it time to sell?” guide for landlords and run it as a lead magnet ad

6. Facebook Groups & Marketplace

Many wholesalers are mining Facebook for leads, specifically:

  • Investor groups (where landlords vent)

  • Marketplace listings from FSBOs

  • Garage sales as a signal of moving

  • People asking for contractor recommendations (implies rehab)

How to Beat Them:

  • Set up saved searches with keywords like “motivated seller,” “needs work,” or “must sell”

  • Send personal DMs, not copy-paste pitches

  • Post your own “Looking for a flip” ad with clear criteria and referral bonus offers

7. Niche Lead Sources Wholesalers Love

Some of the most overlooked, but valuable, lead sources wholesalers rely on:

  • Tax lien lists

  • Water shutoff records

  • Divorce filings

  • HOA delinquency notices

  • Fire-damaged property reports

  • Bankruptcy filings

These are all signs of distress, pressure, or urgency.

How to Beat Them:

Build relationships with clerks, inspectors, or title reps who can give you early tips
Use paid tools like Reonomy or PropertyRadar to monitor owner data in real time
Target sellers with combo pain: e.g. probate + code violation = high chance of action

Why You Can Win (Even If You’re Not a Full-Time Wholesaler)

Here’s the good news:

Most wholesalers stop at the lead. They don’t have the capital, experience, or risk appetite to do the deal themselves. You do.

So once you know where they’re fishing for leads, you can:

  • Beat them to it

  • Partner with them (if you're too late)

  • Out-offer them with confidence

  • Use insider tools they overlook (like MLS agent relationships or buyer data)

Tips to Systematize Your Lead Hunting Like a Wholesaler

If you want to match their volume without losing your sanity:

  • Use a VA to build your lists weekly or bi-weekly

  • Batch outreach with tools like BatchLeads or LaunchControl

  • Score each lead based on pain level (e.g. 3+ flags = call today)

  • Keep a CRM of all sellers contacted, even if they say “not yet”

Bonus: What Wholesalers Fear Most

If you're competing against wholesalers, you should know what they hate:

  • Experienced buyers who move fast

  • Sellers who are already getting multiple offers

  • Realtors who educate their clients on value

  • Anyone who shows up with funding and a clear offer

You can be all four.

Final Thoughts

Wholesalers dominate many markets because they’ve mastered one thing: finding off-market deals.

But their systems aren’t exclusive. You can use the same lead sources, and often with better follow-through and higher credibility, to beat them at their own game.

If you’re serious about flipping, start thinking like a wholesaler. But execute like an operator.

That’s how you win.

Written By:

Austin Beveridge

Chief Operating Officer

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Join Thousands Of Satisfied Operators

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679

Live Users

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23
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%

Satisfaction Rating

11
+

Markets Live

Discover

Join Thousands Of Satisfied Operators

Discover why top teams rely on Goliath to find motivated sellers. Get everything you need to prospect, nurture, and close more deals.

679

Live Users

$
23
M

Closed Deals

11
%

Satisfaction Rating

11
+

Markets Live