How to Start Wholesaling Real Estate in 7 Steps

Wholesaling real estate involves putting a property under contract and transferring your contractual interest to another buyer, typically in exchange for an assignment fee. Because the wholesaler generally does not take title when using an assignment structure, the strategy can require less capital than purchasing and renovating a property. However, regulations for wholesaling differ by state, so licensing, registration, disclosure, and contract requirements can apply.

A financial advisor can help assess how wholesaling real estate may fit into your financial plan.

How to Get Started Wholesaling Real Estate

These seven steps outline how a typical real estate wholesaling transaction may work. Before starting, check the laws where the property is located because wholesaling rules are not uniform nationwide.

Step 1: Research the market and applicable laws

Study recent sales, property values, and investor activity in the area where you plan to operate. You should also determine whether state or local law requires a real estate license, wholesaler registration, specific disclosures or other consumer protections.

Step 2: Build a network

Connections with real estate investors, real estate agents, attorneys, title companies and other professionals can help you identify properties and potential buyers. Local investor groups and real estate events can also provide contacts.

Step 3: Look for potential sellers

Wholesalers generally seek owners who are prepared to sell without a lengthy marketing process. Properties may be identified through advertising, referrals, public records, or direct outreach. Marketing and solicitation practices must comply with applicable federal, state, and local rules.

Step 4: Negotiate a purchase contract

The wholesaler enters into an agreement with the property owner, generally intending to assign the contractual interest to another buyer. The contract must permit assignment if that is the planned exit strategy. State law may also require the wholesaler to disclose this intention to the seller. Oklahoma, for example, requires a wholesaler to disclose in writing before signing an agreement that the wholesaler intends to assign or sell the equitable interest for a higher price. ¹

Step 5: Find an end buyer

After obtaining a contractual interest, the wholesaler seeks an investor interested in acquiring that interest. The wholesaler should be careful about how the opportunity is advertised. Depending on state law, marketing an equitable interest can fall under real estate licensing or wholesaling regulations.

Step 6: Assign the contractual interest

If the original agreement allows assignment, the wholesaler and end buyer can execute an assignment agreement transferring the wholesaler’s contractual rights. The agreement generally identifies the parties, the underlying purchase contract and the amount the wholesaler will receive.

Step 7: Complete the transaction

The end buyer typically closes on the property with the seller, while the wholesaler receives the agreed assignment fee. A title company, closing agent or real estate attorney may handle the transaction depending on local practice and state law.

State Wholesaling Laws Can Affect How You Operate

Real estate wholesaling is not regulated the same way in every state. That makes the property’s location an important consideration before entering into or advertising a wholesale transaction. Some jurisdictions regulate the activity through real estate licensing laws. Nebraska, for example, treats publicly marketing an equitable interest in a purchase contract for most real property as an activity requiring a real estate license unless an exemption applies. ²

Oregon took a different approach. Since July 1, 2025, individuals engaged in residential property wholesaling generally must either register as a Residential Property Wholesaler or hold an applicable real estate license. The state also requires written disclosures to potential sellers and buyers and generally requires wholesaling disclosures in advertising. ³

Ohio added specific requirements effective March 2, 2026. Its law requires residential wholesalers to provide prescribed disclosures before entering certain binding contracts involving residential property. ⁴

These differences make it important to check current state requirements before soliciting sellers, signing contracts or marketing contractual interests. An assignable purchase agreement by itself does not necessarily mean a person can legally conduct a wholesaling business without satisfying other licensing, registration or disclosure rules.

Assignment vs. Double Closing

Assigning a purchase contract is not the only way to structure a wholesale transaction. Another method is a double closing. With an assignment, the wholesaler transfers their rights under the original purchase agreement to the end buyer. The end buyer then completes the purchase directly from the property owner, and the wholesaler generally receives an assignment fee.

A double closing involves two separate transactions. The wholesaler first purchases the property from the original owner and then sells it to the end buyer. Because the wholesaler temporarily takes title, this structure can require more funding and produce additional closing costs.

The appropriate structure depends on the contract, financing arrangements and applicable state law. An attorney or other qualified real estate professional can review the transaction before contracts are signed.

Frequently Asked Questions About Wholesaling Real Estate

Bottom Line

Real estate wholesaling can provide a way to participate in property transactions without making the larger investment typically required to buy and renovate a home. A wholesaler commonly contracts to purchase a property and then assigns that contractual interest to another buyer for a fee. The strategy still involves financial and legal risk, and state rules can impose licensing, registration, disclosure and advertising requirements. Researching the market and applicable laws before entering into contracts can help clarify the costs and obligations involved.

Tips for Managing a Rental Property

• A financial advisor can help you decide how a rental property can fit into your overall financial or retirement plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• If you’d like to invest in a rental property without owning it, you might consider a real estate investment trust (REIT) instead. A REIT owns and manages real estate investment properties while paying out dividends to investors.

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