Do you need a Real Estate Wholesaling License in the US?

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Do you need a Real Estate Wholesaling License in the US in 2025?

Do you need a Real Estate Wholesaling License in the US in 2025?

Real Estate Industry
# June 11, 2025
# 469 Views

Real estate is a hot topic for anyone looking to jump into property investment. In today’s era, real estate wholesaling continues to attract more new investors looking for ways to earn money without large upfront costs. Most states still let investors complete real estate wholesaling deals without a broker card if they follow strict disclosure rules. It’s a clever way to make money by finding great deals and passing them on to buyers. But here is the million-dollar question. Do you need a license to wholesale real estate? It depends on where you live and how you handle your deals. Most states allow real estate wholesaling without a license when done correctly. Yet 10 states now demand a license after one or two assignments, and 7 more will add new rules on January 5, 2025.

In this blog, you will learn everything about real estate wholesale, like what it is, the laws, the steps to do it right, and much more.

What Is Wholesaling Real Estate?

Wholesaling means a buyer signs a purchase agreement and then sells, or “assigns,” that contract to another buyer. Cash rarely changes hands before the final closing. The difference between the contract price and the assignment price is profit. Fast capital, low risk, and no repairs make the model attractive for wholesaling real estate for beginners.

This strategy is different from flipping, which involves buying the deed and fixing the home.

Is Wholesaling Real Estate Legal in All States?

Real estate wholesaling is legal in all 50 states in the United States. There is no state that views wholesaling real estate as illegal. However, the regulations vary greatly from state to state.

Some states have strict rules about how you can conduct wholesaling activities. Others have minimal requirements.

Why Licensing Became the Hot Topic in 2025?

Assignment deals grew fast from 2020 through 2024. Some untrained actors misled sellers, so lawmakers responded. Pennsylvania passed Bill 52 and will require wholesalers to register and disclose profit starting January 4, 2025. Virginia, Indiana, Iowa, and Wisconsin added similar registration or disclosure laws between 2023 and 2025. Oklahoma went further with the Predatory Real Estate Wholesaler Act and now treats unlicensed public marketing as a violation. Illinois limits unlicensed wholesalers to one deal per year under the Real Estate License Act of 2019.

2025 Market Facts

The median existing-home price reached 41,4000 dollars in April 2025, an all-time high.
Inventory climbed 31 percent year over year, giving wholesalers more off-market real estate deals.
Texas, the fastest-growing state, has added over six million residents since 2010, boosting wholesale demand.

“Lower mortgage rates may unlock latent demand, yet price pressure keeps bargains scarce,” – Lawrence Yun

Real Estate Wholesaling Laws by State

Below is a summary in simple words for you. Always confirm with your attorney before closing.

State group	Current rule set (June 10, 2025)	Keynote
License always required	Oklahoma, Nebraska, South Carolina	Must hold broker license before any assignment
One free deal, then a license	Illinois, Virginia	The second deal triggers the licensing
Registration or disclosure	Pennsylvania, Indiana, Wisconsin, Iowa	New forms and profit disclosure
Strict marketing limits	Georgia, Ohio, Florida, Maryland, New Jersey, North Carolina	Public ads may violate broker code
Permit with few limits	Texas, Arizona, Colorado, Alaska, Alabama	Follow federal and fair housing rules only

Do You Need a License to Wholesale Real Estate?

The answer to this question depends both on location and on volume. In the majority areas of the United States, an individual who wants to do some trading on the stock market is allowed to carry out one deal by means of a contract without holding a license if they:

Use assignable real estate contracts that state the right to assign.
Disclose their intent in writing to the seller.
Avoid “representing” either party in negotiation, which triggers broker laws.

In states listed above as “license always required,” obtain a broker license or partner under a broker.

Wholesaling Real Estate License Requirements

If your state demands a credential, expect these steps:

Pre-license education of 60 to 150 hours
Fingerprint background check
State exam with 70 percent pass score
Error and omissions insurance proof

After passing, hang your license with a supervising broker unless the state lets you go independent.

Can You Wholesale Real Estate Without a License?

Yes, in open states and within limits. But fines climb fast. States like Oklahoma sets penalties at 5000 dollars per occurrence. Georgia and Ohio can issue cease orders and block recording of deeds. Consider compliance cost versus potential profit.

Real Estate Assignment Contract Legality

The contract must state the term “and or assigns” next to the buyer’s name. Many title firms now add extra identity checks in 2025 to curb fraud. Always attach a disclosure that you hold equitable interest only. Such seller contract assignment rules protect both parties.

Double Closing vs Assignment

Two closings on the same day happening one after another are referred to as double closing. The deed is briefly in the wholesaler’s name. By an assignment, the deed transfer is bypassed, and only the contract is changed. Double closing conceals the spread but requires additional costs, whereas assignment keeps the fees at a lower level but reflects a profit. Make a decision depending on the state laws and the preference of your exit buyer.

Real Estate Assignment Contract Legality

It is necessary that the contract specifies the words “and or assigns” adjacent to the name of the buyer. To help prevent fraud, several title companies are implementing additional identity verifications in 2025.

Moreover, remember to always include a disclosure that indicates you have only the equitable interest. These kinds of regulations applicable to the assignment of seller contracts are safeguards for the two parties involved.

Real Estate Wholesaling Compliance Checklist

Confirm real estate investor license rules with your state agency.
Use a clean assignment agreement that has been approved by the council.
Keep marketing clear that you sell contract rights, not property.
Record all phone calls and texts with sellers.
Hold funds in escrow.
Close through a licensed title company.

Following the checklist builds trust with real estate developers seeking steady deal flow.

How to Legally Wholesale Real Estate in 2025?

Build a real estate wholesaling business structure like an LLC for liability and tax benefits.
Source-motivated sellers with driving for dollars, probate lists, and data leads.
Verify title, liens, and municipal code issues early.
Lock the contract below 80 percent of market value minus repairs.
Market the contract to vetted cash buyers only, never on public MLS if unlicensed.
Assign or double close within the contract window.
File IRS Form 1099 for spreads over 600 dollars.

States Where Wholesaling Real Estate Is Legal Without a License

As of June 2025, Texas, Arizona, Colorado, Alaska, Alabama, and 25 other states still have minimal thresholds. Disclosure is still a smart move in such states. Experienced investors also execute disclaimers along with the deed at closing to ensure that real estate wholesaling is in compliance with the law.

Off Market Real Estate Deals and Lead Generation Tips

Use public notice lists such as divorce or eviction filings.
Network with code officers who spot vacant houses.
Offer quick cash and flexible closing to sellers.
Leverage text campaigns but honor TCPA rules.
Build brand pages that rank for “cash home offer in City” using AI-powered SEO methods.

Need extra help building those funnels? StreamlineREI can set up your lead engine today.

Real Estate Deal Sourcing Tools for 2025

Method	Cost	Benefit
Driving for dollars apps	Medium	Finds distressed homes fast
Tax lien lists	Low	Identifies owners under pressure
PropTech data feeds	High	Wide reach and skip tracing
Local wholesalers	Low	Co-wholesale partnerships

Pick one core channel, then layer two more to keep the pipeline full.

Real Estate Flipping vs Wholesaling

Flipping a house is a major process and it requires the owner to have skills in rehabilitation, a bigger amount of money and a longer time to be able to hold the property. On the other hand, wholesaling is mainly about the rights of the contract and the fastness of the process. Both real estate investment methods require excellent financial skills and a large pool of potential buyers. Quite a lot of people who flip houses team up with those who wholesale properties in order to have a constant flow of acquisitions.

Real Estate Wholesaling Compliance Tips

Staying compliant protects your business and helps you avoid legal problems. Follow these key compliance strategies:

Know Your Local Laws
Work with Professionals
Keep Detailed Records
Get Proper Insurance
Stay Educated

Final Words

Real estate wholesaling is going to be a successful business in 2025. Legislators, however, require a greater level of openness. Be familiar with the legal regulations of your state, take the proper disclosure steps, and cooperate only with moral buyers. At least ten states either require a license now or will in the near future, so you should be five steps ahead. Maintaining clean contracts, being truthful in marketing, and the assignment business can still make you a profit this year.