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  • Writer's pictureChris Goff

Wholesaling Real Estate: A Look at States Where It's Not Permitted

Wholesaling real estate is a popular strategy among investors looking to make quick profits without having to make any renovations or repairs. However, not all states view wholesaling in the same light. In fact, there are a few states where this practice is heavily regulated or even disallowed. This blog post will delve into the complexities of wholesaling real estate, focusing on the states where this strategy isn't permitted.

 

Understanding Real Estate Wholesaling

 

Real estate wholesaling involves entering into a contract with a property seller and then assigning that contract to an end buyer. The wholesaler makes their profit from the difference between the contract price with the seller and the amount the end buyer pays.

 

It's a strategy that requires little to no capital or credit, which makes it attractive to many first-time real estate investors. However, some states have laws and regulations that restrict this practice.

 

States That Restrict or Disallow Wholesaling

 

While most states allow real estate wholesaling, there are some exceptions:

 

1. Illinois: As of 2020, Illinois passed legislation that made significant changes to the rules surrounding real estate wholesaling. Anyone who engages in more than one real estate wholesale deal per year must be licensed as a broker.

 

2. Ohio: Ohio's laws are somewhat ambiguous when it comes to wholesaling. While not explicitly forbidden, the law states that anyone selling or advertising real estate they do not own must be licensed.

 

3. Philadelphia, Pennsylvania: While Pennsylvania as a whole does not prohibit wholesaling, the city of Philadelphia has specific ordinances that require wholesalers to obtain a license.

 

It's important to note that these laws can change, and regulations can vary even within states. Therefore, it's crucial for investors to consult with a knowledgeable real estate attorney or professional in their target market to ensure they are operating within the law.

 

The Importance of Real Estate Education

 

Understanding the legalities of real estate wholesaling is just one aspect of this investment strategy. Whether you're in a state that allows wholesaling or not, education is key. It's crucial to understand the ins and outs of contracts, negotiations, and finding profitable deals.

 

Start Wholesaling Real Estate Today

 

REIPro is an excellent solution for those just starting their journey in real estate wholesaling. As a comprehensive real estate investing software, REIPro offers a wealth of resources and tools that simplify the process of finding and managing potential deals. It provides detailed property data across the United States, which allows users to search for properties based on various criteria such as location, property type, and price range. Additionally, REIPro provides access to off-market leads, helping newbies uncover hidden opportunities. The platform also streamlines the process of direct mail campaigns, which can be a vital strategy in wholesaling. With its easy-to-follow 10-step workflow, REIPro guides beginners through every stage of the deal, from finding leads to closing. Overall, REIPro is not just a tool but a comprehensive guide for anyone starting in real estate wholesaling. Click here to learn more.


Search Vacant Properties in all States using REIPro



Searching for vacant properties to secure wholesale deals can be streamlined using certain tools. These properties often present hidden opportunities for investors looking to flip or wholesale real estate. The key is to uncover these potential investments efficiently and effectively. From curated lists of vacant land properties to comprehensive training on wholesaling real estate, investors are empowered with the knowledge and resources to master the art of real estate wholesaling. Additionally, the process of finding absentee owners and running comps for wholesale deals is simplified, allowing for a more efficient investment workflow. The ability to skip trace vacant properties further expedites the process, leading to faster deal closures. In essence, utilizing the right resources can significantly enhance the search for vacant properties, making it easier to find great wholesale deals.


Wholesaling can be a profitable venture if done correctly and legally. However, it's essential to stay updated with the laws in your state and city. Always consult with a real estate attorney before starting any new investment strategy.

 

Remember, real estate investing is not a one-size-fits-all business. If wholesaling isn't permitted in your area, there are many other strategies to explore. Stay educated, stay informed, and keep pursuing your real estate investment dreams!

 

Disclaimer: This blog post is not legal advice. Always consult with a licensed real estate attorney in your area before making investment decisions.

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