These are the wholesaling questions I get most — in my inbox, in my Facebook groups and from new investors in REI Skool. The answers are short on purpose. Each one points to a deeper page when you’re ready.
A warning up front: wholesaling rules have been rewritten in a number of states over the last couple of years, so treat every answer below as education, not legal advice. Your state’s statute and an attorney who practices there get the final word.
If you’re new, read these in order: the wholesaling real estate guide, then how wholesaling works step by step, then is wholesaling real estate legal. If you work in South Carolina, go straight to wholesaling in South Carolina.
Straight answers
What is wholesaling in real estate?
Wholesaling means putting a property under a purchase contract with an owner and then transferring that position to another investor, usually through an assignment or a double close. The wholesaler is paid for finding and negotiating the deal. Start with the wholesaling real estate guide.
Do you need a license to wholesale real estate?
It depends on your state and on how you find buyers. Rules now differ sharply by state — some require a license, some a registration, some written disclosures to the seller. Look up your state’s current statute and ask a local attorney before you market a contract.
Is wholesaling real estate legal?
In many places, the core question is whether the way you market the deal is allowed. Signing and closing a contract is not the issue; advertising property you don’t own for compensation can be. See is wholesaling real estate legal for how to check your state.
Can I wholesale in South Carolina?
South Carolina’s revised Real Estate Practice Act defines wholesaling and treats marketing residential property before you own it, with expectation of compensation, as activity requiring a license. Read wholesaling in South Carolina and talk to a South Carolina real estate attorney.
Is wholesaling worth it?
It can be worth it as a way to learn deal finding, negotiation and valuation. It’s a sales business with real marketing costs and a legal layer, and many people quit before their first deal. It’s worth it if you’ll work consistently and follow your state’s rules.
How does an assignment of contract work?
You transfer your right to buy the property to an end buyer, who closes with the seller on the original terms. Your fee is set in an assignment agreement and typically paid at closing. Details at assignment of contract.
What's the difference between an assignment and a double close?
An assignment is one closing where your buyer steps into your contract. A double close is two closings where you buy the property and then sell it. Double closes cost more in fees but you actually take title. See double closing real estate.
How do wholesalers get paid?
From the spread between the seller’s contract price and what the end buyer pays — as an assignment fee or as the difference in a double close, paid at closing. The fee has to fit inside what the buyer can pay at their numbers. See wholesale assignment fee.
How much money do I need to start wholesaling?
Less than buying and renovating, but not zero. Plan for marketing, earnest money, legal review of your contracts and enough cushion to survive the months before a deal closes. I won’t give a number because it varies by market and channel.
Should I tell the seller I'm a wholesaler?
Yes. Tell them plainly that you’re an investor, that you may close yourself, with a partner or assign the contract, and that their price doesn’t change. In some states this disclosure is now required in writing.
Should I start with wholesaling or flipping?
Wholesaling generally needs less capital and more sales; flipping needs capital and project management. Many investors learn one and grow into the other. Compare them at wholesaling vs flipping houses.
How do I find buyers for a wholesale deal?
Build relationships with active investors before you need them — learn what they buy, where and how they fund. Follow your state’s rules on marketing property you don’t own. The cash buyers list guide shows how.