Is Wholesaling Better Than Flipping? One Investor’s Real-World Breakdown

At just 22, Donovan Camarotti has already built a high-volume wholesale real estate business. He started flipping homes at 18 but transitioned to wholesaling in response to shifting market conditions. What was once a flip-heavy operation, averaging 8 to 10 fix-and-flips a month, is now a lean, wholesale-focused model aiming for 10 deals per month.

Numbers and risk management drove the shift. Donovan realized that wholesale profits often matched or exceeded those from flips, without the capital exposure. In the past, he had up to 42 active flips. A 10% drop in home values across that inventory could wipe out profits. With wholesale deals, there’s no holding risk and fewer delays—just clean, quick transactions.

“We’ve never lost money on a wholesale deal.”

The Risks of Flipping Condos

Donovan quickly learned that some property types carry a higher risk. He experienced losses on condo flips following the Surfside condo collapse in Miami. That event, along with stricter insurance requirements, made buyers hesitant.

As a result, Donovan stepped away from condos in favor of more predictable single-family homes.

Donovan’s First Flip at 18

His journey began with inspiration from a family friend who flipped houses. By high school, Donovan was running a car detailing business, saving money, and studying real estate. At 18, he made his first deal; a $200,000 condo he rehabbed and sold for $295,000, earning $27,000 in profit.

That deal came through a local real estate agent who spotted a handyman working on a unit not yet listed. Donovan acted quickly, negotiated his way up to his top offer, and closed within three weeks. The experience validated his belief that real estate could be a viable long-term path.

How He Financed and Estimated Rehab Costs

Donovan used hard money to fund the deal—receiving 82.5% of the purchase price and 100% of the renovation costs. The rehab went just $1,000 over budget.

He prefers line-item rehab estimates over broad per-square-foot calculations. In Florida, costly surprises like a new roof or HVAC system can throw off loose estimates. Early on, Donovan brought in subcontractors during the inspection period to build accurate bids.

With experience, he now estimates major costs from memory while still confirming with agents and lenders.

Inside His Wholesale Pricing Strategy

Donovan’s team provides comps with notes on how they relate to the subject property. However, they no longer include fixed After Repair Values (ARVs) or rehab estimates.

“Buyers have different exit strategies. One might clean and list, another might do a full renovation. Their numbers won’t match.”

This approach prevents confusion and allows each buyer to evaluate deals based on their own goals. Internally, Donovan’s team still verifies deal viability through detailed underwriting.

Biggest Win: $150K Assignment Fee

Watch Donovan break down the strategy behind his biggest wholesale deal and how he consistently closes high-volume assignments:

One of Donovan’s largest wins was a $150,000 assignment deal. The property, a mixed-use home with a guesthouse, efficiency unit, and office zoning, was under contract for $3.05 million. He assigned it to a buyer at $3.2 million.

The income potential, layout, and zoning made it highly desirable. The deal closed quickly and delivered a higher profit than many flips, without the extended timeline.

How He Gets Real Estate Leads: PPC, Meta Ads, and Referrals

Donovan sources leads through three main channels:

Meta Ads (Facebook & Instagram):

• Lowest cost per lead (~$38)
• Generates ~70% of deals
• Short, direct-to-camera videos perform best

Google PPC (Pay-Per-Click):

• High intent but higher cost (~$248 per lead)
• Delivers ~20% of deals

Referrals:

• Once his top source during flip-heavy days
• Now brings in ~10% of deals

The Secret Behind High-Performing Meta Ads

Donovan initially resisted Meta ads due to poor past results. But after partnering with a new ad agency and creating authentic video ads, results improved dramatically.

His current strategy includes:

• Clear messaging (e.g., “Get more for your home. No fees.”)
• Real, unscripted video content
• Geographic targeting within 5–6 counties
• PPC to reinforce brand trust after ad exposure

“People see our Meta ad, then search our name. That’s where PPC picks up the lead.”

This multichannel strategy helps build trust while attracting highly motivated sellers.

Streamlined Team Structure for Scaling

As his model shifted to wholesaling, Donovan streamlined his team:

• 1 Project Manager
• 1 Acquisitions Specialist
• 1 Dispositions Manager
• 1 Retail Agent for flips
• 1 Operations Manager
• Contracted bookkeeping and accounting

This lean structure supports growth. With existing systems in place, adding one more acquisitions hire and boosting ad spend could help reach 200+ deals per year.

Lessons from Buying Assignments Before Selling Them

Before becoming a wholesaler, Donovan bought assignments himself. That experience shaped how he treats buyers.

• Always be open to offers, even if below asking
• Ask for buyer feedback to better understand market fit
• Use feedback to negotiate with sellers when needed

“Even if you’re going to be lower, send in the offer.”

How He Sets Buyer Expectations

Donovan values reliability. He’s never walked from a deal outside of contingency. He expects the same from his buyers.

• Deals are sold as-is
• No inspection period post-signing
• Earnest deposits are required promptly
• Title issues are the only valid out

Buyers who don’t perform may be blacklisted, but those who communicate openly may get another chance.

Contract Marketing: Simple, First-Come Strategy

Donovan doesn’t run bidding wars unless necessary. Instead, it’s first-come, first-served.

“If a seller disclosed something, we’ll share it. If not, it’s up to buyers to verify.”

Clean offers and timely deposits win the deal. It’s a fair, fast-moving system that rewards serious buyers.

Scaling Plans: From 10 to 200+ Wholesale Deals Per Year

The goal: reach 200 wholesale and novation deals per year.

To get there, Donovan plans to:

• Increase Meta and PPC ad spend
• Hire a second acquisitions specialist
• Keep backend systems lean and efficient

He still flips, but only when spreads are wide. Recent examples include buying a $700K home that appraised for $1.7M.

“The base is there and the hard part is there.”

Fixing Operational Bottlenecks

While the front-end side of the business runs smoothly, Donovan identified friction on the backend.

He recently outsourced transaction coordination to a firm specializing in wholesaling and novation. Their experience is expected to improve timelines and communication throughout the closing process.

Advice for New Real Estate Wholesalers

Here are Donovan’s top takeaways for new wholesalers:

• Be open to all offers
• Share data, not fixed values
• Estimate rehab costs by line item
• Set firm but fair deal terms
• Deliver on promises every time

These fundamentals are key to building a sustainable wholesaling business.

Donovan’s Real Estate Marketing Playbook

Marketing is about connection. Donovan keeps his videos personal and direct. He outlines the benefits clearly:

• No commissions
• Quick closing
• Strong cash offers
• Local, trustworthy team

That straightforward approach builds confidence with sellers and accelerates deal flow.

Managing Risk in Real Estate Investing

Donovan’s risk strategy is simple: avoid properties with unstable demand or complex conditions. That’s why he avoids condos and focuses on single-family homes in steady neighborhoods.

By keeping deals flexible and letting buyers choose their own path—whether flipping, renting, or redeveloping—he increases exit potential and reduces exposure.

Final Takeaways from Donovan’s Real Estate Journey

Donovan shows that you don’t need a big team or years of experience to succeed in real estate. What you do need is discipline, strong marketing, and a clear strategy.

“Know your numbers. Protect your downside. Build strong relationships.”

Frequently Asked Questions

What’s the difference between flipping and wholesaling real estate?

Flipping involves buying, renovating, and reselling a property. Wholesaling means assigning a contract to another investor without renovating.

Can you start real estate wholesaling with no experience?

Yes. Many wholesalers begin by learning how to find comps, using hard money or partners, and starting small. Donovan began at 18 with minimal resources.

How do real estate wholesalers find leads?

Wholesalers use Meta ads, Google PPC, referrals, direct mail, software like DealMachine, and networking.

What is a typical assignment fee in wholesale real estate?

Fees vary, but Donovan averages $24,000 per deal. Some assignments, like his largest, reach $150,000 or more.

Is real estate wholesaling legal and profitable?

Yes. Wholesaling is legal in most states when done correctly. Highly profitable with strong ethics, sound contracts, and disciplined deal evaluation.