Wholesaling As A Real Estate Agent: Strategy & FAQs Explained

Can Realtors wholesale property? Yes, wholesaling as a real estate agent is possible when it’s done transparently and in compliance with state law, brokerage policies, and your fiduciary duties. The key is knowing when you’re acting as a principal versus as an agent, disclosing your license status, and choosing the right structure (assignment or double close) for the deal.

In this guide, we’ll break down the legal framework, pros and cons, step-by-step process, disclosures and ethics, deal structures, and FAQs so you can wholesale confidently—and compliantly—as a licensed real estate professional.

• What Is Wholesaling (for Real Estate Agents)?
• Can You Wholesale As A Realtor?
• Can A Realtor Be A Wholesaler?
• Can You Wholesale A House With A Realtor?
• Can You Wholesale As A Real Estate Agent?
• Can You Wholesale Without A Real Estate License?
• Should I Get My Real Estate License As A Wholesaler?
• Pros & Cons Of Wholesaling As A Real Estate Agent
• Wholesaling As A Real Estate Agent FAQs 

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What Is Wholesaling (for Real Estate Agents)?

Wholesaling is a deal strategy where you secure a property under contract at a discount and then either assign that contract to a buyer or double close. For agents, the key difference is role: when you wholesale, you’re acting as a principal (buyer/seller of the contract), not as a listing or buyer’s agent earning a commission. Understanding this distinction is foundational to doing wholesaling as a real estate agent compliantly and confidently.

Properties that fit the wholesale real estate model often share a few traits:

1. They’re in poor or distressed condition (deferred maintenance, dated finishes, code or functional issues).
2. They’re owned by motivated sellers seeking speed or certainty (timeline, financial, or life event).

Wholesale deals can be single-family homes, small multifamily, rentals, light commercial, or foreclosures. You’ll often source them in two buckets: listed (on the MLS) or off-market.

Read also: Wholesaling Real Estate for Beginners  |  Is Wholesaling Real Estate Legal?

Listed Wholesale Properties (MLS)

Listed means the property is on the Multiple Listing Service (MLS), accessible to licensed professionals. MLS exposure attracts more eyeballs—which can increase competition for the same “spread”—but it also delivers a steady stream of opportunities refreshed daily.

According to the National Association of REALTORS^®, the MLS remains the top advertising channel for home sellers. For agents who wholesale, that access (plus filters, alerts, and historical data) can be a real edge when you know how to underwrite quickly and write clean offers.

Unlisted (Off-Market) Wholesale Properties

Off-market deals aren’t on the MLS. Many wholesalers pursue them for perceived lower competition and better pricing flexibility. In practice, good off-market properties get plenty of attention—from cold calls and direct mail to SMS and door knocking—so you’ll still need tight outreach and clear value to win the conversation.

Common off-market channels include referrals, driving for dollars, probate/eviction lists, tired landlords, and networking with contractors and property managers. The advantage is speed: if you bring a simple, certain path to closing, motivated sellers often choose that over maximizing price.

Read also: How to Find Off-Market Properties: 10 Best Ways

Can You Wholesale as a Realtor?

Short answer: yes. You can do wholesaling as a real estate agent (or Realtor) when it’s done transparently and in compliance with state law, brokerage policy, MLS rules, and the NAR Code of Ethics. In practice, that means acting as a principal (you’re the buyer on the contract), disclosing your license status and intent in writing, and using a compliant structure (assignment or double close)—not blurring lines with your agency role.

Read also: Is Being a Real Estate Agent Worth It? 10 Pros & Cons

What Exactly Is a Realtor?

A Realtor is a licensed real estate professional who is also a dues-paying member of the National Association of REALTORS^® and agrees to its Code of Ethics. Not every agent is a Realtor. When Realtor wholesaling, you must still meet ethical and disclosure standards that protect consumers and preserve trust.

Realtor vs. Real Estate Agent (Quick Difference)

• Real estate agent: Holds an active state license to represent buyers and/or sellers for a commission.
• Realtor: A licensed agent or broker who is also a member of NAR and bound by its Code of Ethics.
• Wholesaling as a licensed agent: Allowed when you act as a principal, disclose your status, and follow all laws, brokerage policies, and MLS rules.

Which Hat Are You Wearing When You Wholesale?

• Principal hat: You sign the purchase contract, then assign it or double close—you’re not marketing the property for a commission.
• Agent hat: You represent a client for a fee/commission. Mixing this with a wholesale deal can create conflicts; therefore, clearly disclose and separate roles.
• Best practice: Keep documentation clean, use written disclosures, and involve your broker early.

If you’re asking, “can a real estate agent wholesale?” the key is clarity: be a principal, disclose everything, and run the transaction by the book. That’s how you do wholesaling houses as a licensed agent without risking your license—or your reputation.

Source

Those who are Realtors are held to higher ethical standards (than non-Realtors) because Realtors, as a condition of their membership, must comply with the NAR’s Code of Ethics.

The Code of Ethics, which was established more than 100 years ago, covers many essential real estate-related matters. The code is divided into 17 Articles – with Standards of Practice included for many to demonstrate how Realtors must act to remain in compliance.

Article 4 is of particular interest concerning wholesaling:

In addition, as in most real estate matters, disclosure is a pertinent matter. As a Realtor, you must disclose the fact that you are a licensed real estate agent in any offer to buy or sell real estate when you are the buyer, seller, or wholesaler.

This is clarified in Article 5:

Can a Realtor Be a Wholesaler?

Yes. You can do wholesaling as a real estate agent when you operate as a principal in the deal (you sign the purchase contract) and follow disclosure, ethics, and state law. In practice, that means contracting a property at a discount and either assigning the contract or completing a double close—separate from representing a client for a commission.

When you wear the agent hat, the NAR Code of Ethics and your fiduciary duties require you to put your client’s interests first. When you wear the principal/wholesaler hat, you must clearly disclose your license status and role so there’s no confusion or conflict. That clarity is what keeps Realtor wholesaling compliant and trusted.

If you’re asking, “can Realtors wholesale properties?” or “can you wholesale as a Realtor?” the answer is yes—when you separate roles, disclose everything, and run the deal by the book.

*Fiduciary duties are hard and fast rules and are seen in black and white, with little wiggle room for interpretation:

However, a Realtor can legally wholesale real estate if they stay within the legal boundaries of the relevant jurisdiction and appropriate ethical boundaries.

Wholesaling As A Side Hustle For Real Estate Agents

Real estate agents can pursue wholesaling as a profitable side hustle alongside their regular business.

By leveraging their market knowledge and networking skills, agents can find off-market deals and wholesale properties part-time.

This allows them to diversify their income streams without needing to fully commit to wholesaling.

However, agents must ensure they follow state laws, disclose their realtor status, and balance both roles ethically to avoid conflicts of interest while maximizing their earning potential.

 Real Estate Agent Tips for Success in Wholesaling

For real estate agents looking to succeed in wholesaling, start by leveraging your existing network to find potential deals.

Use your access to the Multiple Listing Service (MLS) and industry contacts to identify off-market properties.

Always disclose your realtor status to maintain transparency and comply with regulations. Focus on building relationships with cash buyers and investors, as they are key to quickly assigning contracts.

Lastly, stay organized and manage both your wholesaling and traditional real estate activities efficiently.

How To Wholesale Real Estate As A Realtor

In certain situations, a seller or homeowner may not have the equity or funds they would need to enlist or employ the professional services of a real estate licensee. A seller may also prefer avoiding the traditional sales route if they want to circumvent some of the legal mandates (i.e., disclosures and inspections, etc.) that are a part of a conventional listed MLS sale.

However, despite the legitimate reasons a seller may have to NOT use a Realtor, these property owners are still otherwise motivated to sell. In fact, they may be receptive to learning of an alternative way to sell the property without a commission – mainly if the property can sell fast.

With appropriate disclosure, there is no reason a licensed Realtor or wholesale real estate agent can’t use their training and experience to negotiate a wholesale transaction with a distressed seller. As a wholesaler, they can quickly find another buyer (usually a cash buyer) using an existing network, a curated buyers list, or professional, trusted colleagues.

A real estate wholesaler’s goal is to enter a real estate purchase agreement for a price below market value. A real estate contract, when fully executed, is a legally binding agreement.

*Through the Principle of Equitable Conversion, the purchase contract legally redefines the subject property’s ownership:

Once the real property has been placed under contract, the wholesaler can assign one’s contractual rights (a.k.a., equitable or beneficial interest) to another end buyer. An assignment contract is a legal instrument the wholesaler/assignor uses to transfer the buyer’s/wholesaler’s rights & obligations to a different buyer.

The final buyer (a.k.a., the assignee) is often a cash buyer who is a flipping professional intent on rehabbing the property for the final retail homebuyer. A wholesale transaction closes (in weeks, not months) with the assignee or new buyer taking the title, not the wholesaler.

*NOTE: In the above scenario unfolded as written, the real estate professional’s actions would be that of an investor and not as a licensed representative of the seller. As a result, a Realtor, in the above scenario, would NOT be violating Article 4 of NAR’s Code of Ethics.

Realtors must remember which hat they are wearing. Are you a licensed representative/fiduciary of a principal or a real estate investment wholesaler? 

When participating in a real estate transaction, a licensed real estate professional acting in the same transaction can be a wholesaler or a licensed representative but not both.

Can You Wholesale A House With A Realtor?

Yes, a house that is listed on the MLS with a licensed real estate agent, real estate broker, or brokerage, can be the subject property in a wholesale transaction. The MLS offers savvy, smart wholesalers the opportunity to find and search for distressed properties priced appropriately that have been listed with other real estate licensees.

As noted above, the Multiple Listing Service is the dominant database used by professional real estate agents and Realtors across the country. Its popularity and incredible growth over the past ten decades speak to its ease of use and its unmatched effectiveness.

Real estate wholesalers, whether they are Realtors, agents, or unlicensed individuals, have the ultimate objective to sign contracts with sellers to gain control of the property’s equitable interest – if only for a limited period that is defined by the executed contract.

The objective is to find another buyer while the property’s owner maintains physical possession.

The profit generated through the wholesale transaction is earned as a wholesaler, not as a licensed real estate agent or active Realtor member.

Get Started Here: Partner with Real Estate Skills & eXp Realty

Can You Wholesale As A Real Estate Agent?

Yes, a real estate agent, like a Realtor, can wholesale property legally if their actions as a wholesaler do not violate relevant real estate laws.

Licensed agents must have a clear understanding of their role in the transaction to avoid violating established regulations.

• Are you a licensed representative or fiduciary of a principal?
• Or are you a real estate investment wholesaler acting as the principal?

When referencing one wholesale transaction, a licensed real estate professional can be a wholesaler or a licensed representative – and not both. A dual role would create a conflict of interest that may lead to the licensee violating their duty as a fiduciary representative.

The really good news is that real estate professionals possess the education, the knowledge of the due diligence process, and the experience that is easily applied to a wholesale deal as an investor. For example, licensees typically have market experience and in-depth knowledge of market conditions as well as real estate law.

Seasoned real estate agents have usually had the opportunity to hone their negotiation skills and talents, which can pay off when developing a new wholesale real estate transaction. Experienced professionals have also developed lists of trusted vendors, investors, and satisfied clients, which facilitate the wholesale process.

Can You Wholesale Without A Real Estate License?

Yes, non-licensed individuals, in most locations, can wholesale if their actions do not violate the relevant real estate and license laws. Wholesaling has become a prevalent investment strategy that has created lively debates nationwide.

As a result, the art of real estate wholesaling has been on the radar of many cities and states. Some have proactively redefined the laws to include the actions of a wholesale real estate professional. Among them are Illinois, Philadelphia, and Oklahoma.

Real estate wholesalers, who do not hold a real estate license, must be certain they stay within the legal lanes of the property’s jurisdiction.

Remember, wholesalers can legally sell or market their equitable interest or their ‘right to purchase.’ This, according to most state laws, is VERY different than selling real property.

Representing a seller or buyer requires the individual to earn a real estate license, whereas wholesaling does not.

Read Also: How To Get MLS Access In 6 Ways (Even Without A License)

Should I Get My Real Estate License As A Wholesaler?

Wholesaling real estate can be done with or without a license (except in Illinois, Philadelphia, and Oklahoma) if the wholesaler does not violate license law.

However, some wholesalers choose to earn their real estate license to enhance and grow their wholesaling business by creating real estate industry connections and opportunities. First, earning a license will offer a wholesaling investor access to the MLS through a paid membership.

Earning a license and one of its many sub-credentials is a great way to establish professional credibility while building relationships, networking with colleagues, and meeting potential buyers. And it allows you as an investor to develop a deeper understanding of the relevant wholesaling laws in the local real estate market.

A successful wholesaler operates from a position of integrity. This includes -

• Appropriate management of the seller’s expectations.
• Transparency – the contract’s terms should include your intentions.
• Knowing when to consult with a real estate attorney for legal advice to ensure you maximize your legal protections.

Remember – a wholesaler cannot legally market/sell real property. Wholesalers can only sell or market their –right to purchase real property at specified terms.

Advantages Of Wholesaling As A Real Estate Agent

• Legality and Compliance: As a licensed real estate agent engaging in wholesaling, you're operating within legal boundaries. This is crucial, especially for those who might face barriers in acquiring a license due to past issues. Working legally provides a sense of security and adherence to industry standards.
• Upholding Ethical Standards: Holding a real estate license obligates you to adhere to the ethical guidelines set by the real estate department. This is significant in an industry where ethical lapses can occur. By maintaining high standards, you enhance your reputation and trustworthiness in the industry.
• Gaining a Competitive Edge: When negotiating with sellers, being a licensed agent can offer a distinct advantage. Your licensure assures sellers of your commitment to following real estate regulations, potentially giving you an edge over unlicensed competitors.
• Networking within the Industry: Being a licensed agent often means you're part of a network of professionals. This can lead to more opportunities, as fellow agents are more likely to engage with you for properties and investors, simplifying the process of finding deals.

Challenges Of Wholesaling As A Real Estate Agent

• Initial Costs: The financial investment required to become a licensed agent can be substantial. This includes expenses for education, exams, and membership dues. For those just starting out, these costs can be a significant hurdle.
• Impact of Past Transgressions: The real estate industry's screening process can be unforgiving, potentially barring individuals with past legal issues, even if they occurred long ago. This raises questions about the balance between public safety and giving individuals a second chance.
• Brokerage Fees: Upon successfully closing a deal, a portion of your earnings goes to your brokerage. This can mean receiving a smaller assignment fee than you might as a non-licensed wholesaler.
• Contractual Complexities: Licensed agents are required to use comprehensive contracts that offer extensive protection for both buyers and sellers. However, the length and complexity of these contracts can sometimes be daunting to sellers, potentially leading to lost deals in favor of non-licensed wholesalers who offer simpler agreements.

Wholesaling As A Real Estate Agent FAQs

In this section, we'll address some frequently asked questions about wholesaling as a real estate agent, providing clear, insightful answers to help you understand this aspect of the real estate industry better.

Do Real Estate Wholesalers Make Money?

Real estate wholesaling is a legitimate method where you play a pivotal role in the property transaction process.

It involves orchestrating deals between sellers and buyers without actually buying the property yourself. Essentially, you secure a contract with the seller and then transfer this contract to a buyer, earning money from the deal. Here are key insights into wholesaling profitability:

1. No Initial Investment Required: One of the attractive aspects of real estate wholesaling is that it doesn't typically require an upfront financial investment in the property. This lack of a down payment requirement can make it an appealing option for those who do not have significant capital to invest in real estate.

2. Skill and Knowledge-Based: Your success in real estate wholesaling heavily depends on your ability to find undervalued properties and connect them with potential buyers. It requires a deep understanding of the real estate market, negotiation skills, and the ability to spot opportunities.

3. Market Conditions Matter: The profitability of real estate wholesaling can be influenced by the real estate market's condition. In a booming market, finding buyers is often easier, potentially leading to more profitable deals.

4. Risk and Reward Balance: While real estate wholesaling can be profitable, it's not without its risks. Market changes, difficulty in finding buyers, or issues with properties can impact your success.

5. Building a Network is Crucial: Establishing connections with both property sellers and potential buyers is essential for consistent success in real estate wholesaling.

6. Legal and Ethical Practices: Adhering to legal and ethical standards in your transactions is vital. Misrepresentation or failure to comply with regulations can lead to legal troubles and damage your reputation.

How Much Can You Make Wholesaling Real Estate?

Wholesaling houses offers the potential of a lucrative source of income – especially for experienced investors and agents who have a knack for finding properties that meet established profit criteria.

Remember, a wholesaler is a principal buyer who, as a middleman, sells their equitable interest in the subject property for a fee or a higher price. If a wholesaler does take the title, it is generally for a matter of hours or a day, temporary and for administrative purposes.

Wholesalers have similar salary earning paths and potentials to that of real estate agents. While some companies may entice wholesalers to work on salary, the practice is not the norm for this industry. This type of offer is also likely to be beneficial to the employer, not the wholesaler. 

With basically limitless profit potential, wholesalers often turn what began as a simple curiosity or interest into a lifelong, profitable career.

Read Also: Wholesale Real Estate Salary: How Much Can You Make Wholesaling?

What Are Common Wholesale Exit Strategies?

The following are the most popular and effective exit strategies used by real estate wholesalers: the assignment of contract method and the double close.

The assignment of contract strategy is the most common and fastest exit strategy. It also typically has the lowest expenses.

A Double Closing requires the wholesaler to attend two closings. The first closing meets the conditions of the initial purchase agreement. A secondary closing then follows an hour, a day, or so later. The wholesaler is now the seller in the second closing. 

*NOTE: You will need funds (either personal or from one of the available traditional or hard money lenders) if only temporarily, to close on the first contract. Also, closing costs (including title company fees) are higher using this strategy, although it tends to offer the most legal protection in terms of real estate law.

Plus, the profit you make as a wholesaler remains confidential, which is not the case with the assignment closing method.

Read Also: Top 10 Best Exit Strategies For Real Estate

Final Thoughts On Wholesaling As A Real Estate Agent

A Realtor is a licensed real estate professional who holds a real estate license and belongs to the NAR. Realtors, who proactively choose to become members, are held to higher ethical standards (than non-Realtors) because membership requires compliance with the NAR’s Code of Ethics. For those wondering, can a realtor wholesale property, or can a realtor wholesale, the answer is yes, but they must adhere to these ethical guidelines. Additionally, many realtors work alongside wholesale real estate companies, ensuring they operate within legal and ethical boundaries.

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*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.