Quick answer: Dispo, short for disposition, is the second half of a wholesale deal: finding a cash buyer for your contract and assigning it (or double closing) before it expires. A typical dispo window is 7 to 30 days. DispoKey handles dispo for off-market contracts with a 72-hour buyer-match guarantee and a 60/40 split in the wholesaler's favor.
If you've spent time in wholesaling groups you've heard "dispo" constantly, usually defined loosely. This guide defines it precisely, walks through each step a professional disposition follows, and explains where most deals stall so you can fix the weak link in your own process.
What "dispo" means in real estate
Dispo is the stage between signing a purchase agreement with a seller and closing with an end buyer. Every wholesale transaction has two halves:
- Acquisitions: find a motivated seller, agree on price, sign the purchase agreement.
- Disposition: find a buyer, collect their earnest money, assign the contract or double close, and get paid at closing.
Acquisitions gets most of the marketing attention. Dispo is where contracts quietly expire, so it deserves equal process.
How disposition works, step by step
| Step | What you do | Typical time (example) |
|---|---|---|
| 1. Price for buyers | Verify ARV with closed comps; estimate rehab; set buyer price | Day 0 |
| 2. Build deal packet | Photos, comps, rehab scope, access, contract dates | Day 0-1 |
| 3. Market | Send to vetted buyers by email, calls, private lists | Day 1-3 |
| 4. Walkthroughs | Group or individual showings | Day 2-5 |
| 5. Qualify | Proof of funds, terms, closing date | Day 3-6 |
| 6. Assign or double close | Sign assignment; buyer posts earnest money with title | Day 4-7 |
| 7. Close | Title disburses your fee on the settlement statement | Day 10-30 |
Step 1: price the deal for the buyer, not for you
Cash buyers work backward from ARV. A common screen is maximum allowable offer = ARV × 0.70 − repairs, with your fee coming out of the space between their maximum and your contract price. If your contract price leaves no room, no amount of marketing will move it. Run it in the MAO calculator before you market.
Step 2: build a deal packet buyers trust
Include 20 or more honest photos, three to five closed comps, a rehab scope with your estimate, occupancy status, access instructions and the closing deadline. Inflated ARVs and hidden problems are the fastest way to lose a buyer for good.
Step 3: market to vetted buyers
Speed matters, but so does targeting. A deal sent to 50 buyers who buy that property type in that ZIP outperforms one blasted to thousands of strangers. Calls and texts are regulated by the FTC's Telemarketing Sales Rule and the TCPA; use consent-based lists.
Steps 4 to 6: walkthroughs, qualification and earnest money
Serious buyers walk the property, send proof of funds and sign quickly. Require non-refundable earnest money deposited with the title company once the buyer signs the assignment. This filters tire-kickers.
Step 7: close and get paid
The title company shows your assignment fee on the settlement statement and disburses it at closing. On a double close, you buy and resell, often using transactional funding, and the spread is your fee.
Why deals fail at dispo
- Price: the contract price leaves no margin for buyers.
- List depth: few active buyers for that property type or market.
- Time: marketing starts late; a 14-day contract is half gone.
- Trust: buyers have been burned by bad numbers.
- Paperwork: contract restricts assignment, or title issues appear late.
Do your own dispo or JV it?
Building a buyer list takes time and maintenance. Many wholesalers JV dispo with a partner who already has buyers, trading part of the fee for a higher close rate. See our full guide on how to JV a wholesale deal.
With DispoKey you submit an off-market contract; we match a buyer within 72 hours or you walk. You keep 60% of the fee with $0 upfront. We don't accept on-market listings.
Assignment fee math, worked through
Suppose you contract a house at $118,000. Closed comps support an ARV of $210,000, and the rehab scope is $32,000. Using the common investor screen, a buyer's maximum is about $210,000 × 0.70 − $32,000 = $115,000. That's below your contract price, so there is no room for a fee at all. If you had contracted at $100,000, the same buyer could pay $115,000 and your fee would be about $15,000. These are labeled example numbers, but the lesson is real: dispo starts at acquisition, with the price you sign.
Terms you'll see on every dispo
Expect your title company and buyers to use these: assignment of contract (transferring your purchase rights), double close (two back-to-back closings), earnest money deposit (EMD), proof of funds (POF), settlement statement, ARV and MAO. Each has a full entry in our glossary.
Ask your title company early which closing method they support. Some title companies won't insure assignments with large fees shown to the buyer, and some require the seller to acknowledge the assignment in writing. Knowing this on day one avoids a scramble on day ten.
When DispoKey may not be your best option
If you already have a strong buyer lined up for this property, assign directly and keep the full fee. If the deal is on the MLS, it isn't a fit for us. And if your contract price is above what cash buyers pay, renegotiate before anyone markets it.
Key takeaways
- Dispo is selling your contract position to an end buyer before it expires.
- Price for the buyer's math first; marketing can't fix a bad price.
- Honest deal packets and earnest money protect your reputation.
- Check state rules on marketing contracts.
- JV dispo trades margin for a higher close rate.
Have a contract on the clock? Submit your off-market deal. Also read how to find cash buyers for wholesale deals. This article should be reviewed by an attorney in your state.
