What Is a Wholesaler in Real Estate?

A real estate wholesaler is someone who puts a property under contract and then assigns that contract to another buyer—usually an investor—for a profit. Wholesalers don’t buy homes directly; they connect motivated sellers with cash buyers, often helping FSBO sellers close faster without repairs or showings.

✅ How Wholesaling Works

  • Find a motivated seller: often someone with a vacant, inherited, or distressed property.
  • Get the property under contract: the wholesaler signs a purchase agreement with the seller.
  • Assign the contract: they transfer the agreement to a cash buyer or investor using an assignment contract.
  • Collect an assignment fee: typically the difference between the original contract price and what the investor agrees to pay.

Wholesalers act as a bridge between sellers who need a quick sale and buyers seeking investment properties.

💡 Why Wholesalers Matter in Real Estate

Wholesalers create liquidity in local markets. They help sellers who need to move fast, and they help investors find opportunities that meet their return goals.

  • Speed up sales when traditional listings take too long
  • Offer as-is deals that appeal to investors
  • Reduce holding costs for distressed or vacant properties

📍 Wholesalers and FSBO Sellers

If you’re selling For Sale By Owner, wholesalers may approach you with quick-cash offers. While these can close fast, you’ll often sell below market value. Listing on the MLS with Brokerless lets you reach investors and retail buyers—without paying 6% commission.

🧩 Common Myths About Wholesalers

  • “Wholesalers must buy the property.” ❌ They don’t purchase—it’s an assignment of contract.
  • “Wholesaling is illegal.” ❌ Legal in most states when done transparently and disclosed properly.
  • “Wholesalers can replace agents.” ❌ They serve a niche; for maximum exposure, MLS listings remain essential.