Reverse Wholesaling & Novations: A Smarter Way to Close More Deals

A fast-scaling real estate investor shared how his team consistently turns cold calls into revenue across Ohio, Florida, and Pennsylvania. In this post, you'll see how they build filtered lead lists, train international cold callers, apply novations for retail spreads, and keep repeat buyers happy.

The system is simple in design but deep in execution. It relies on reverse wholesaling, list precision, market-specific pods, and disciplined follow-up. The process is optimized with tech tools, original training systems, and real market knowledge.

How This Wholesaling Team Work Across 3 States

Each state follows a tailored strategy. Cleveland focuses on turnkey rentals, Florida uses novations to access retail spreads, and Pennsylvania targets value-add flips with higher ARVs.

The team operates in three key states, each with a distinct approach:

How the Team Operates in Cleveland

Cleveland focuses on turnkey rentals and light rehab properties that meet Section 8 standards. Deals are sourced, sold to local fix-and-flippers, then often bought back to be placed with out-of-state investors. The team built deep local relationships to support this loop.

Why Novations Work in Florida

In Florida, novations dominate. When homes are in decent condition and sellers want fair prices, novations let the team list the property on the MLS for retail buyers, without closing on it themselves. This creates larger spreads, especially in cases where investors would otherwise flip the same house with no changes.

What Makes Pennsylvania Ideal for Flips

Pennsylvania mirrors the Ohio playbook but benefits from higher ARVs. This boosts assignment fees and balances the lower revenue from Ohio's low-priced markets.

In an episode of the DealMachine Real Estate Investing Podcast, the founder breaks down this exact playbook, from novations to virtual caller training. Want to hear the full interview? Watch the full episode below:

How Is the Cold Calling Team Set Up?

Why Egypt Was Chosen for Virtual Assistants

The team staffs most of its cold callers in Egypt. Egypt provides strong English fluency, minimal accent issues, and full alignment with U.S. time zones. Over time, they found confidence and clarity mattered more than accent.

How Local Market Pods Improve Call Quality

Callers are assigned to specific markets, like Cleveland or Florida, and do not rotate. This focus builds street-level familiarity. Cold callers reference local landmarks like the Cleveland Clinic, improving seller trust and boosting engagement.

What Is Reverse Wholesaling And Why Does It Work?

Reverse wholesaling starts with buyers. Core investors who purchase five or more deals share their preferences, ARVs, rehab scope, neighborhoods, and the team pulls lists to match.

This saves time and ensures high lead-to-contract conversion. It also avoids deals that wouldn’t pass investor underwriting, especially in low-ARV cities like Cleveland.

What Are the Best Filters for Real Estate Lead Lists?

The team uses a combination of rehab estimates, ownership data, sale dates, and square footage filters to isolate qualified seller leads.

Filtering is critical. The team layers multiple criteria to target motivated sellers with the right property type.

Top List Filters (Used by This High-Volume Wholesaling Team):

• Rehab Estimate Filter: Skip heavy rehab projects in low-ARV markets.
• Out-of-State Owner Filter: Target landlords who may be more motivated to sell remotely.
• Last Sale Date: Only include properties last sold over 3 years ago OR where sale date is unknown.
• Square Footage: Filter for homes under 2,500 sq ft OR those with missing square footage data (to match Section 8 guidelines).
• Contact Type and Age: Only include likely owners, not renters, and prioritize those aged 65+ for higher motivation.
• Rehab estimate: Exclude full gut jobs in $100K ARV zones.
• Out-of-state owners: More likely to own rentals and sell remotely.
• Last sale date: More than 3 years ago OR "unknown."
• Square footage: Under 2,500 sq ft OR unknown (fits Section 8).
• Contact type: Likely owner AND contact age above a set threshold.

Using AND/OR Logic to Improve List Accuracy

The team uses parentheses logic to combine strict and inclusive rules. For example:

• (Last sale date > 3 years OR last sale date unknown)
• (Living area ≤ 2,500 sq ft OR living area unknown)
• (Contact type = likely owner AND contact age > 65)

These filters improve lead precision while recovering hidden gems missed by basic filters.

How Is the Team Structured and Trained?

Each market pod has 5–6 dedicated VAs led by managers. These managers oversee training, review calls, manage the CRM, and close contracts.

Hiring and Onboarding

A full-time overseas lead manager, Anderson, recruits VAs via Facebook groups and call center networks. Many new hires come from referrals. A structured onboarding process includes a custom GPT-trained script assistant that helps standardize training.

How Does the Team Sell Wholesale Deals Fast?

They handle dispositions in-house, focus on repeat buyers, and use deal feedback to refine targeting and underwriting.

Dispositions are handled directly by the founder. Selling repeatedly to the same investors helps build relationships, shorten sales cycles, and gain insights into buyer preferences. These insights are used to improve underwriting and list targeting.

What Marketing Channels Drive the Most Leads?

Primary Channel: Cold Calling

Cold calling remains the highest volume and lowest cost per deal channel. The team uses Kixie with a 3-line dialer to handle high call volumes.

Secondary Channels:

• Facebook Ads: ~$5,000/month spend for additional reach.
• AI Messaging: In development using a custom GPT trained on the founder’s tone.
• Direct Mail: Launching soon using the same filters from cold call lists.

Diversifying channels prevents over-reliance on one method.

What’s the Follow-Up Strategy for Cold Calling Success?

The team uses a 3–4 call follow-up system and multi-line dialers to improve contact rates and increase callbacks.

The team follows a 3–4 call attempt strategy before retiring a lead. Repeated contact attempts increase recognition and response rates. Multiple dials from the same number often prompt callbacks.

“We're calling random people at random times. The chance of catching them on the first try is low. Repeating calls increases our chances.”

What Are the Real Operating Costs and Profits?

• Monthly Revenue (Ohio): ~$100,000
• Average Assignment Fee: ~$7,500
• Operating Costs: ~$33,000
• VA Salaries: $26,000
• Dialers & Software: $5,000
• Office, Wi-Fi, CRM Tools: Balance

The office helps with training, collaboration, and script refinement.

How Does the Team Handle Property Walkthroughs Remotely?

In each market, the founder networks with aspiring wholesalers via social media. In exchange for guidance, these local contacts perform walkthroughs and take property photos. This reduces inspection costs and builds future team talent.

What Are the Steps From Lead to Close?

From the moment a VA logs a lead, the process is structured with clear roles, fast reviews, and a clean handoff from acquisition to disposition.

1. VA logs lead in CRM: motivation, condition, asking price, timeline.
2. Manager reviews and assigns for acquisition.
3. The acquisition lead negotiates and locks up the deal.
4. The founder handles the disposition to repeat buyer or novation setup.

What Risks Exist And How Does the Team Adjust?

• Low ARV Markets: Avoid heavy rehabs.
• High ARV Markets: Use novations to capture spread without taking title.
• Channel Dependence: Diversify with Facebook ads, direct mail, AI.
• Scaling Callers: Onboard in waves, train with GPT, monitor results.

Why Does This Wholesaling Model Work?

The team aligns marketing with buyer demand, filters intelligently, trains deeply, and focuses on repeatable processes that scale.

The model is buyer-driven. It avoids wasted calls, filters out bad deals, and focuses on local knowledge. Tools, training, and repeatable systems help scale across markets without losing control.

“Know your buyers, know your markets, apply smart filters, and train your people well.”

FAQ: High-Volume Real Estate Wholesaling

What is real estate wholesaling and how does it work?

Wholesaling is when an investor contracts a property and assigns that contract to a buyer for a fee. No repairs are made by the wholesaler.

What is a novation deal in real estate?

A novation allows the team to list a property on behalf of the seller to retail buyers, often without buying the property themselves. This captures more profit on clean homes.

Why are out-of-state owners good leads?

They typically own rentals and are less emotionally attached. These owners are often open to fast sales, especially if the property needs work.

How do virtual assistants help in wholesaling?

VAs handle cold calling, lead logging, CRM updates, and early conversations, keeping the business scalable and consistent.

What is reverse wholesaling?

Reverse wholesaling starts with buyer criteria. The team pulls lead lists that match what buyers already want, reducing wasted time and increasing close rates.