If you're only doing cash wholesale deals, you're saying no to half the opportunities that land in your pipeline. And every deal you say no to is money you already spent marketing for.
The operators I work with who hit $100k/month don't do it by finding more leads. They do it by converting more of the leads they already have — because they can say yes to a wider range of deal structures.
Here's how the major exit strategies work, when to use each one, and how the right mix directly increases your ROI on every marketing dollar.
The Exit Strategies
Wholesale (Cash Assignment)
You get a property under contract at a discount, then assign the contract to a cash buyer for a fee. You never own the property.
Average deal size: $20k (8–10% margin of sale price)
Best for: Deep discount deals where the seller needs speed and the property needs work.
Dispo: Requires a cash buyer network or access to one.
This is the bread and butter. Most of your deals will be wholesale. But it's not the only tool.
Novation
You get a property under contract, then list it on the MLS at or near retail price and sell it to a retail buyer. The seller gets their price (or close to it), and your margin is the spread between your contracted price and the sale price. You never put up cash.
Average deal size: $20k+ (8–10% margin, but on higher sale prices since you're selling retail)
Best for: Properties in decent condition where the seller wants close to market value. Sellers who have time (30–60 days) and want more money.
Dispo: MLS listing — no cash buyer network needed.
Novations are a game-changer for Facebook leads specifically. A lot of inbound leads want close to retail value. With wholesale-only, those are "no deals." With novation, those are $20–$30k assignments.
Important note: novations close at a lower rate than cash deals — 50–60% contract-to-deal vs 70–80% for cash. More moving parts, longer timeline, retail buyer contingencies. Factor this into your projections and break out your KPIs by exit strategy.
Wholetail
You purchase the property, do minimal cosmetic work (clean, paint, maybe flooring), and list it on the MLS. You own the property briefly.
Average deal size: $50k+ (15–20% margin of sale price)
Best for: Properties that are 80–90% retail-ready but need light cleanup to maximize sale price.
Dispo: MLS listing — same as novation.
Wholetails are your deal-size multiplier. A deal that's $15k as a wholesale might be $50k as a wholetail because you're capturing the retail margin instead of assigning to a buyer at a discount.
Fix and Flip
You purchase the property, do a full renovation, and sell at retail.
Average deal size: $50k–$100k+ (15–20%+ margin of sale price)
Best for: Properties with significant value-add potential where the renovation cost is justified by the ARV.
Dispo: MLS listing or retail sale.
Flips are the highest-margin exit but also the most capital-intensive and risky. Cherry-pick these — only take the best opportunities where the spread is large and the renovation scope is manageable.
The Right Mix
65–75% wholesale or novation. This is your volume. Rural leads, bigger rehab properties, tighter margins, quick turnaround. These deals pay the bills and keep cash flow consistent.
25–35% purchase and wholetail or flip. Cherry-pick the best deals that cross your desk. These are your deal-size multipliers — the ones that turn a $100k month into a $200k month.
This mix gives you the best blend of cash flow velocity (wholesale/novation close fast) and deal size (wholetail/flip maximize per-deal profit).
How This Increases Your Marketing ROI
Wholesale-only operator:
- 100 leads → 25 offers → 6 contracts (25% close rate)
- Says no to 40% of opportunities because the deal doesn't work for a cash buyer
- Actual contracts: 3–4 | Average deal: $15k | Revenue: $45–$60k
Multi-strategy operator (same 100 leads):
- 100 leads → 25 offers → 6 contracts at 25% close rate
- Can say yes to wholesale, novation, wholetail, or flip
- Actual contracts: 6 | Average deal: $25k | Revenue: $150k
Same leads. Same marketing spend. Same sales team. 2.5–3x the revenue because you have the tools to close a wider range of deals.
How to Add Novations If You're Not Doing Them
Novations are the easiest second exit strategy to add because they require no capital and leverage the MLS for dispo.
The basic process:
- Get the property under contract with a novation agreement
- List the property on the MLS at retail price (you'll need a real estate agent or license)
- Sell to a retail buyer
- Close simultaneously — seller gets their agreed price, you keep the spread
The key skill: pitching the novation to the seller. You're essentially saying "I can get you more money than a cash offer, but it takes 30–60 days instead of 7. Are you open to that?"
Many sellers — especially the 46% of our leads who want to sell in 1–6 months, not ASAP — are perfect novation candidates. They have time. They want more money. Novation gives them both.
If you want help implementing multiple exit strategies alongside done-for-you lead generation, book a strategy call. We don't just generate leads — we help you maximize revenue from every lead that comes in.
Book a Free Strategy Call →Chandler Saine | CEO of Level Up REI
leveluprei.io