How To Wholesale Real Estate In Illinois: Step-By-Step (2025)

If you’ve been wondering how to wholesale real estate in Illinois, the good news is—it’s one of the most beginner-friendly ways to get started in property investing. You don’t need a license, deep pockets, or renovation skills. From the streets of Chicago to smaller cities across the state, smart investors are profiting by helping sellers and cash buyers close deals quickly.

But before you dive in, it’s important to understand the specific rules, strategies, and market dynamics that come with wholesaling real estate in Illinois. This guide was carefully crafted to walk you through the legal framework, step-by-step process, and expert tips to help you wholesale with confidence and avoid common mistakes, especially in a state that recently tightened regulations around this strategy.

Let’s break down everything you need to know to succeed with real estate wholesaling in Illinois—legally, ethically, and profitably.

• What Is Wholesaling Real Estate?
• How To Wholesale Real Estate In Illinois (9 Steps)
• Is Wholesaling Real Estate Legal In Illinois?
• How Much Do Real Estate Wholesalers Make In Illinois?
• Do You Need An Illinois Wholesale License?
• Illinois Wholesale Real Estate Contract
• Can A Realtor Wholesale Property In Illinois?
• Is Virtual Wholesaling In Illinois Feasible?
• Is Wholesaling In Illinois Easy?
• Final Thoughts On Wholesaling In Illinois

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If you’re serious about doing your first real estate deal, don’t waste time guessing what works. Our FREE Training walks you through how to consistently find deals, flip houses, and build passive income—without expensive marketing or trial and error.

This FREE Training gives you the same system our students use to start fast and scale smart. Watch it today—so you can stop wondering and start closing.

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*Before we teach you how to wholesale real estate in Illinois, we invite you to view our video on How To Wholesale Real Estate Step by Step (IN 21 DAYS OR LESS)!

Host and CEO of Real Estate Skills, Alex Martinez, provides a comprehensive, step-by-step guide for beginners to start wholesaling real estate!

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What Is Wholesaling Real Estate?

Wholesaling real estate is a fast-paced investment strategy where you secure a property contract and assign it to another buyer for a profit, without ever taking ownership of the home. For investors learning how to wholesale real estate in Illinois, this strategy can be an accessible starting point that requires little capital, no credit, and no renovation experience.

In most cases, wholesale real estate deals involve distressed properties or sellers facing urgent financial or personal situations. The investor (wholesaler) contracts to purchase the property, then assigns that contract to a cash buyer for a fee. When done correctly, the wholesaler never takes title, and the transaction closes quickly with minimal risk.

Keep in mind, Illinois has unique laws that impact how wholesaling must be conducted. It's essential to understand licensing requirements, legal disclosures, how many deals you are allowed to do in a single year, and contract assignment rules before jumping in. We cover all of that in our full guide to how to invest in real estate in Illinois, and later in this guide.

Read Also: How to Start Investing in Real Estate with No Money 

Why Wholesale Real Estate In Illinois?

From Chicago’s busy neighborhoods to smaller towns across the state, there’s no shortage of motivated sellers and investor interest. With the right strategy, Illinois offers everyday people a real shot at turning wholesale deals into steady income.

According to Zillow, the average home value in Illinois is $285,813, making it easier for new investors to get into deals with minimal upfront capital using assignment contracts or double closings.

The state also has one of the highest levels of distressed property inventory in the country. Based on recent data from RealtyTrac, Illinois has 15,757 homes in foreclosure, 1,174 bank-owned properties, and 2,305 homes scheduled for auction. These numbers mean wholesalers have thousands of opportunities to negotiate below-market deals with built-in equity.

Between the inventory levels, motivated sellers, and accessible price points in cities like Chicago, Peoria, and Rockford, there’s never been a better time to start wholesaling real estate in Illinois.

If you're serious about getting started, dive deeper into this guide and discover the exact steps to close your first Illinois wholesale deal, even if you’re new or starting with no money.

Wholesaling Real Estate Pros & Cons in Illinois

Wholesaling real estate in Illinois has its quirks, but if you’re willing to learn, it can be a solid way to get started in the property game. The laws here are a little stricter than in other places, so you’ll need to understand how things work. But with the right approach, the mix of distressed homes and active buyers creates real opportunities. Let’s break down what’s good, what’s tricky, and what to expect along the way:

 

Pros and Cons of Wholesaling Real Estate in Illinois

Pros	Cons
Low Barrier to Entry: You don’t need a real estate license to wholesale legally, as long as you stick to one wholesale deal per 12-month period or use licensed representation.	Strict Licensing Rules: Illinois limits unlicensed wholesaling and has legal requirements that must be followed closely.
Strong Profit Potential: Assignment fees in hot areas like Chicago can reach $10K–$30K+ per deal.	High Competition: In major markets, lots of investors are chasing the same deals, so standing out is critical.
No Property Repairs Needed: You're flipping contracts, not houses—no tools or rehab budgets required.	Time-Sensitive Transactions: You’ll need to find buyers fast before your contract expires or earnest money is lost.
Great Learning Platform: It’s one of the best ways to master property values, negotiation, and deal analysis.	Reputation Matters: Illinois wholesalers must be transparent and ethical or risk legal scrutiny.
Motivated Seller Inventory: Illinois has thousands of foreclosures, auctions, and distressed homes to target.	Due Diligence Is Critical: You must verify title, liens, and comps to avoid contract fallout or low-margin deals.

 

Ultimately, if you're serious about learning how to wholesale real estate in Illinois, the pros can far outweigh the cons. From profitable assignment spreads to a steady stream of distressed properties, Illinois gives new investors real potential—if they stay compliant and take the business seriously.

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How To Wholesale Real Estate In Illinois (9 Steps)

Wholesaling real estate in Illinois follows a clear, repeatable process,  and it all starts with understanding your role in the transaction.

Think of a real estate wholesaler as a connector. Your goal is to find a property selling below market value, lock it up under contract, and then assign that contract to a cash buyer at a higher price, keeping the difference as profit.

What you’re really marketing is your legal right to purchase the property, known as your equitable interest. Most wholesalers pass this opportunity along to investors, particularly those who specialize in fix and flip properties, though some buyers may be landlords or even future homeowners.

If you're wondering how to wholesale real estate in Illinois, here's a straightforward step-by-step process to guide your first deal:

1. Partner With A Wholesale Mentor
2. Learn Illinois Real Estate Wholesaling Laws & Contracts
3. Understand The Illinois Real Estate Market
4. Build A Cash Buyers List
5. Find Motivated Sellers & Distressed Properties
6. Put Distressed Properties Under Contract
7. Assign The Contract To Cash Buyer
8. Close Deal And Collect Assignment Fee
9. Double Close Or Wholetail When Necessary

1. Partner With A Wholesale Mentor

If you’re learning how to wholesale real estate in Illinois, the fastest way to avoid missteps is by working with someone who’s already walked the path. This isn’t a strategy you want to freestyle, especially not in a state with more legal nuance than most. An experienced wholesale mentor can help you learn the ropes faster, understand Illinois-specific laws, and keep you focused on what actually moves the needle.

Illinois isn’t the easiest state to break into wholesaling, but that’s what makes having the right guidance so powerful. 

Read Also: The Best Wholesale Real Estate Course (With Step-by-Step Training)

Looking for a Mentor Who’s Done This in Markets Like Illinois?

If you're committed to learning how to wholesale real estate in Illinois (and want to skip months of guesswork), our Ultimate Investor Program gives you a clear blueprint. We’ll walk you through sourcing leads, evaluating properties, structuring contracts, and getting paid—all without needing your own capital.

New to the game? Start with our FREE Ultimate Guide to Start Real Estate Investing to get grounded before diving into deals.

Illinois has plenty of motivated sellers and undervalued properties, but those deals don’t close themselves. Without proper guidance, you’re likely to burn time chasing bad leads or getting stuck in contract issues. Working with a mentor gives you real-world knowledge, legal clarity, and the confidence to act when a deal hits your inbox.

Could you figure it out solo? Maybe. But the smarter play is to lean on someone who’s already made the mistakes, so you don’t have to. Here's a quick breakdown of how starting with a mentor compares to going it alone in Illinois:

 

Should You Start Wholesaling Real Estate in Illinois With a Mentor or On Your Own?

Aspect	With a Mentor	Without a Mentor
Learning Curve	Accelerated by expert coaching	Slower and more error-prone
Risk of Mistakes	Lower — guidance helps you avoid legal missteps	Higher — Illinois laws can trip up new wholesalers
Resources	Templates, scripts, calculators, and deal reviews	You’ll need to research and build from scratch
Decision-Making	Backed by proven strategy and support	Often slowed by second-guessing and uncertainty
Time to First Deal	Faster — weeks instead of months	Slower — depending on trial and error

 

Whether you’re sourcing deals in Chicago, networking in Naperville, or looking for distressed properties in smaller markets like Peoria or Rockford, the right mentor can make all the difference. They’ll help you avoid legal gray areas, build a buyers list that actually converts, and understand which neighborhoods have the kind of seller motivation that turns into profit.

You don’t need to figure it all out yourself. A mentor who's been through the trenches in Illinois can show you how to structure your contracts, work with local title companies, and close confidently, without fear of violating state laws. More importantly, they’ll keep you focused on what matters most: finding good deals, getting paid, and building momentum.

If your goal is to wholesale real estate in Illinois the right way (and fast-track your first few deals), a mentor isn’t just helpful. It’s one of the smartest decisions you can make.

2. Learn Illinois Real Estate Wholesaling Laws & Contracts

To stay within the legal limits as a wholesaler in Illinois, it is essential to understand the laws that govern real estate and real estate licenses in Illinois.

Do you need a real estate license to wholesale in Illinois? Yes, a license is required in most cases to legally wholesale real estate in Illinois, so understanding these regulations is crucial. Knowing how to legally wholesale in Illinois involves following specific guidelines to ensure compliance with state laws and maximize your chances of success.

The Illinois Real Estate License Act (RELA) is the primary piece of legislation, enacted originally in 2000 and has been revised and annotated several times since, as needed. The objective of the RELA is to enhance protections for Illinois consumers and strengthen requirements for training and professionalism.

Up until recently, Illinois had no specific language on the books regarding wholesaling; however, a recent change to the broker’s definition now includes a modification about wholesaling in Illinois.

Item 5 is the revision that is most relevant to Illinois real estate wholesalers. It states that wholesaling more than one property, in any 12-month period, is considered an activity that requires an Illinois real estate license!

So, wholesaling one property per twelve-month period is a legal wholesale strategy in Illinois. But, when done as a regular business practice, “real estate wholesaling” is now governed by RELA’s enforcement provisions, and the wholesaler will need:

• A real estate broker’s license
• And be subject to the provisions that protect consumers, like dual agency and disclosure of self-interest.

To review the other changes to RELA at that time, follow this link. In addition, the 2022 RELA Omnibus Cleanup Bill has revisions to the law as well, although none specifically reference wholesaling.

Illinois Real Estate Licensing Laws

The Illinois Division of Real Estate (DRE) is an agency within the Illinois Department of Financial and Professional Regulation. The Division of Real Estate’s objective is to protect the public by requiring real estate professionals to meet licensing and education requirements to practice legally.

Wholesalers in Illinois who have an interest in becoming a licensed agent in Illinois (with an appropriate brokerage sponsorship) might consider reviewing the requirements in the Illinois State Real Estate Examination Program’s Candidate Handbook.

The Illinois Division of Real Estate issues three types of real estate licenses, which renew every two years:

• A Broker’s License
• A Managing Broker’s License
• A Residential Leasing Agent

3. Understand The Illinois Real Estate Market

Wholesaling real estate in Illinois is a numbers game; he more you understand the local market, the better your odds of locking in deals. Whether you’re sourcing leads in Chicago, Aurora, or any of the surrounding suburbs, knowing how to read inventory trends, pricing patterns, and neighborhood turnover gives you a serious advantage. Below is a breakdown of key MLS associations across Illinois, along with links to housing data that can help sharpen your investing strategy:

 

MLS Region	Association	Market Report Link
Northern Illinois	Midwest Real Estate Data (MRED)	View Market Data
Statewide	Illinois REALTORS	State Market Reports
Central Illinois	Peoria Area Association of REALTORS	Peoria Market Stats
Western Illinois	Quad City Area REALTORS	View Local Trends

 

For a broader view, Zillow, Redfin, and RealtyTrac are also helpful tools. They let you monitor foreclosure activity, price trends, and time-on-market stats across Illinois neighborhoods. Combine that with boots-on-the-ground info from local agents or wholesalers, and you’ll develop a sharper sense of where to focus your efforts.

When you pay close attention to these Illinois housing metrics, it becomes easier to spot undervalued deals, avoid bad areas, and negotiate from a position of strength. With every market insight you gain, you’ll become more confident in making smart, profitable wholesale moves.

4. Build A Cash Buyers List

If you're wholesaling in Illinois, building a strong list of cash buyers is one of the smartest moves you can make. These are the investors who will ultimately close on your contracts, so the more serious buyers you have lined up, the quicker you can assign deals and collect your fee. Whether you're operating in Chicago, Joliet, Peoria, or anywhere in between, here are some of the most effective ways to start growing your Illinois buyers list:

• Partner with real estate agents: Especially in places like Cook County and DuPage, agents who work with rehabbers or landlords can point you to serious cash buyers. Many even know who’s flipping properties, and may help you match deals to investor clients.
• Tap into Illinois REI meetups and groups: Introduce yourself in groups focused on Illinois real estate investing. You’ll find them on Facebook, LinkedIn, and Meetup.com. You don’t need to pitch—just show up, engage, and ask questions. Your network will grow naturally.
• Attend local auctions: Counties like Lake, Will, and Kane hold regular tax lien or foreclosure auctions. These events draw some of the most motivated buyers in Illinois. Introduce yourself, hand out cards, and add qualified names to your list.
• Dig through public property records: Use your county recorder’s or assessor’s website to find recent cash purchases. If you notice the same LLCs or names buying frequently, those are your buyers. Use skip tracing tools to connect and start a conversation.
• Launch your own cash buyer website: With a simple local landing page, buyers can opt in to receive your deals. Highlight past transactions, offer photos, and make it easy to join your list. This creates a steady pipeline of warm leads without chasing people down.

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If you’re serious about wholesaling real estate in Illinois, you need more than a few buyer emails saved on your phone. You need a pipeline: a list of ready, active cash buyers who are hungry for deals and trust you to bring them good opportunities. This list is the foundation of your wholesale business. The bigger and more responsive it gets, the more confidently you can lock up deals, negotiate terms, and close faster than your competition.

Every investor you meet, every auction you attend, and every record you dig through can lead to a connection that turns into a payday. But don’t stop at collecting names—stay in touch. Ask your buyers what they’re looking for, how often they buy, and what types of deals they want next. When your buyers know you listen and deliver, they’ll be ready to act, and that’s how wholesalers win in Illinois.

5. Find Motivated Sellers & Distressed Properties

If you want to close wholesale deals in Illinois, start by focusing on sellers who are under pressure to move quickly. These are folks dealing with things like foreclosure, divorce, probate, or unexpected financial setbacks. In some cases, they’ve inherited a property they don’t want. In others, they just can’t keep up with the mortgage or repairs. From Chicago to Springfield and smaller towns in between, sellers like this exist in every market, and if you can offer them speed and certainty, you’ll be first in line when it’s time to make a deal.

Position yourself as the solution. When you can offer a fast, hassle-free sale with no commissions, no repairs, and no delays, you’re not just making a transaction; you’re solving a real-life problem. Here are some of the best sources for finding motivated sellers and distressed properties in Illinois:

• Public records: Search for tax liens, pre-foreclosure notices, and code violations in Cook County or your local jurisdiction. These indicators often signal a seller who’s overwhelmed and open to a fast cash offer.
• Bankruptcy and probate attorneys: Build relationships with attorneys who handle financial hardship or estates. They often know clients who need to offload a property quickly and privately.
• City inspectors and code enforcement: Homes with ongoing code violations in cities like Rockford or Decatur may be sitting vacant or in poor condition, making them perfect candidates for wholesaling.
• For Sale By Owner (FSBO): Illinois FSBO sellers often want to skip the realtor process and sell “as-is.” Look for these listings on ForSaleByOwner.com, FSBO.com, Houzeo, and Fizber.
• Expired listings: Properties that didn’t sell after being listed on the MLS—especially in cities like Joliet or Champaign—can indicate sellers who’ve grown frustrated. A well-timed offer can revive their motivation.
• Death notices and inherited properties: Many heirs don’t want to deal with inherited homes, especially if they need work. Probate attorneys and local public records can help you find these opportunities.

In wholesaling, the sellers you find are just as important as the deals you secure. When you know how to identify real motivation (and you move quickly), you gain a massive edge in today’s competitive Illinois market.

Whether you’re targeting FSBO homes in the suburbs or distressed properties in Chicago’s South Side, stay consistent, follow up, and work your leads with care. Over time, you’ll create a steady pipeline of off-market opportunities that fuels your business for years to come.

Learning how to wholesale real estate in Illinois begins with solving problems for the right type of sellers. Get this part right, and everything else (from negotiation to closing) gets a whole lot easier.

6. Put Distressed Properties Under Contract

Before making an offer on a property, it's crucial to run the numbers. Successful wholesalers use three core calculations to ensure every deal is profitable:

1. After-Repair Value (ARV)
2. Estimated Repair Costs
3. Maximum Allowable Offer (MAO)

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To help you understand how to lock in your contract correctly, be sure to watch the video below:

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After-Repair Value (ARV)

The After-Repair Value (ARV) estimates what a property will be worth after renovations. This is a critical benchmark that drives your offer price and profit margins. Here’s the formula:

ARV = Property’s Current Value + Value of Renovations

Estimating Repair Costs

Next, calculate how much it will cost to bring the property to market value. You can hire a general contractor or estimate the rehab costs yourself if you’re confident in your skills.

MAO Formula

Your Maximum Allowable Offer (MAO) ensures you leave room for profit and makes the deal attractive to end buyers. Here’s the formula:

MAO = ARV – Fixed Costs – Rehab Costs – Desired Profit

This formula protects your bottom line and prevents you from overpaying. If you don’t calculate your MAO correctly, you could lose out on profit—or worse, be stuck with a property you can’t wholesale.

Preparing the Purchase Contract

After you've run the numbers and reached an agreement with the seller, the next step is putting everything in writing. That means drafting a purchase contract that clearly lays out the terms of the deal. If you’re wholesaling, don’t rely on generic contracts pulled from the internet—most of them leave out key details like assignment language, inspection windows, or how earnest money will be handled. Take the time to make sure your contract reflects the structure of a wholesale transaction and protects your interests.

To avoid costly mistakes, download our free wholesale real estate contracts and follow along with the video above for a step-by-step breakdown.

Read Also: How To Find Off-Market Properties in Illinois: 4 Best Sources

7. Assign The Contract To Cash Buyer

A wholesaler in Illinois ideally finds a well-priced property and generates a profit without ever taking title to the property.

An Assignment of Contract exit strategy is the preferred transaction conclusion.

An assignment is a legal instrument that a wholesaler uses to assign a marketable asset - their right to buy the property - to an alternate end buyer.

When an assignment is executed, the new buyer takes the title from the original seller, not the wholesaler.

Read Also: Wholesale Real Estate Contracts: Download FREE PDF Templates

8. Close Deal And Collect Assignment Fee

A successful wholesale real estate deal typically follows one of two exit strategies, both of which offer the opportunity to generate a profit through assignment fees or referral fees.

Most wholesalers aim to collect between $10,000 and $12,000 per deal, which makes the time, research, and negotiation invested in each transaction worthwhile.

This income range often reflects the value of locating undervalued properties and connecting eager sellers with investors looking to rehab or hold properties.

By securing this margin on each deal, wholesalers can build a steady income stream, especially as they gain experience, refine their negotiation skills, and establish trusted connections within the local real estate market.

9. Double Close Or Wholetail When Necessary

When assigning is not an exit option, wholesalers can also complete the transaction using the double-close strategy. In the double close scenario, the title to the property passes through 3 people – the original property owner, the wholesaler, and then the end buyer.

A double closing, as its name suggests, requires dual closings.

• The first closing meets the terms of the initial purchase agreement, in which the Illinois wholesaler is the buyer.
• The second closing follows immediately or a day or so later. In the second closing, the wholesaler is now the contract’s seller.

Note that while a double close requires a wholesaler to have funds (or access to funds from a traditional or hard money lender) to close, it also helps establish, without question, that the wholesaler is the principal seller, which requires no license. A double close allows the wholesaler to keep their profit/fee confidential, which is not typically available with the assignment exit strategy.

Another exit strategy for Illinois wholesalers is wholetailing. This simply means the wholesaler closes on the property, completes some minor repairs (if any), and then lists it on the market. This allows a wholesaler to have more time and flexibility to find a buyer who will pay top dollar.

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*We invite you to view our video on How To Get Into Real Estate With No Money! Host and CEO of Real Estate Skills, Alex Martinez, provides the perfect guide for beginners to invest in real estate using no capital of their own!

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Wholesale Real Estate Example

An Illinois wholesaler locates a potential wholesale property that looks to be priced below its current market value.

This single-family dwelling is being offered for sale at $200,000. Surrounding properties and basic analyses estimate the property could likely be sold (a.k.a., its ARV) for $425,000 after updates, etc.

The wholesaler’s goal is to find an alternate buyer willing to pay more for the property than the wholesaler has agreed to pay ($200,000). A wholesaler’s typical buyer is another professional who intends to update and market the property to a retail buyer.

• How Much Would The Fix And Flipper Pay?
• Does This Property Have The Potential To Generate A Profit For A Wholesaler?

The answer can be calculated in only a few steps.

House flippers also apply the 70% rule. However, to ensure they can make a profit, the flipper subtracts their costs from the 70% ARV amount. The result of the above calculation is known as the Maximum Allowable Offer (MAO). The MAO is the maximum amount a wholesaler should expect when analyzing the property’s potential.

In the above-noted example, the After Repair Value of $425,000 is $297,500. [$425,000 * .7 = $297,500).

However, the flipper’s analysis must account for the capital required to finish the job.

In the above-noted scenario, if the estimated repair costs and expenses to carry the property are $55,000, what would the cash buyer's Maximum Allowable Offer be to the wholesaler?

The end buyer’s MAO would be $242,500, calculated using this equation: the ARV – Expenses = MAO, or,

$297,500 - $55,000 = $242,500

The wholesaler’s gross profit in the above example would be $42,500. This is calculated as follows –

$242,500 (the buyer’s MAO) - $200,000 (the original contract price).

Read Also: How To Start Wholesaling Real Estate For Beginners In 7 Steps

Is Wholesaling Real Estate Legal In Illinois?

Yes. If wholesalers stay within the legal limits established by the enactment and updates to the Illinois Real Estate License Act (RELA), wholesaling is a legal investment strategy.

Remember, as noted above, a broker in Illinois has been redefined to include anyone who wholesales more than one property in any 12-month period, which is considered to rise to the level of someone requiring an Illinois real estate broker license!

Read Also: Is Wholesaling Real Estate Legal In Illinois?

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Illinois Wholesale Real Estate Laws

If you’re planning to wholesale real estate in Illinois, you need to understand the state’s strict regulations. Illinois is one of the few states that explicitly limits how many wholesale deals you can legally do without a broker’s license. Here's a breakdown of the most important laws impacting wholesalers:

• Only licensed brokers or owners can market property: Under the Illinois Real Estate License Act of 2000 (225 ILCS 454), it’s illegal to market or advertise real estate that you don’t personally own—unless you’re a licensed real estate broker.
• You can only wholesale one deal per year without a license: Illinois law allows unlicensed individuals to assign one contract every 12 months. Do more than one deal in a year, and you’re considered to be operating as a broker without a license, which can carry fines up to $25,000 per violation.
• Only the contract can be marketed, not the property: If you’re unlicensed, you cannot advertise the house itself—only your equitable interest in the contract. This is a critical distinction, and violating it could result in legal action from the Illinois Department of Financial and Professional Regulation (IDFPR).
• Disclosure of assignment is required: You must be transparent about your intent to assign the contract. The seller and the end buyer both need to understand that you are not the actual buyer, but are assigning your interest in the agreement.
• Acting as a broker without a license is prohibited: Negotiating deals, collecting fees from buyers or sellers, or representing others in a transaction without a license is illegal unless you’re assigning a contract you hold an equitable interest in.
• Penalties for violating wholesaling laws: The state may issue cease-and-desist orders, impose civil fines, or even pursue criminal penalties if you’re caught wholesaling illegally. The IDFPR actively enforces these rules under Section 20-20 of the Illinois Real Estate License Act.

The bottom line? If you're serious about wholesaling in Illinois and want to do more than one deal per year, you'll need to either get your real estate license or partner with someone who has one. Compliance isn't optional here—it's a must.

How Much Do Real Estate Wholesalers Make In Illinois?

Wholesaling is a real estate career that appeals to entrepreneurs because, for the most part, the potential wholesaling profits are only limited by the wholesaler’s motivation, innovation, imagination, ability, and at times, market conditions.

Similar to other real estate ventures, wholesaling provides potentially unlimited income to wholesalers, especially those who take the time to hone intuitive skills that help them search and wholesale deals that meet their established investment criteria.

The amount of profit one may generate from wholesale real estate deals vary, contingent upon the following -

• The wholesale negotiation skills to secure the lowest purchase price from one of the potential homeowners.
• The strength of the market.
• The real estate wholesaler’s network of title companies and lending institutions.
• The wholesaler’s buyer’s list.
• The property’s competition, to name a few.

Do You Need An Illinois Wholesale License?

No, you do not need a real estate license to wholesale in Illinois if your actions stay within the legal lanes set forth by Illinois state law.

The law in Illinois allows for non-licensed individuals to wholesale one real estate transaction in a 12-month period.

Read Also: Illinois Real Estate Classes: Wholesaling, Flipping & Licensing

New Wholesaling Law In Illinois

Recognizing the burgeoning wholesale real estate market, legislators in the state of Illinois revised relevant language in the governing RELA law (Real Estate License Act of 2000 Updates) regarding wholesaling properties.

The most pertinent revision to the definition of an Illinois broker is the fact that it adds language that – requires a wholesaler to be licensed if they wholesale (flip paper or flip contracts) more than once in a twelve-month period.

Any individual in Illinois who wholesales more than one property in a 12-month timeframe without the appropriate real estate license will be violating Illinois law – which carries consequences. According to this legislation, unprofessional conduct (unethical or dishonorable) may have penalties:

Illinois Wholesale Real Estate Contract

A real estate contract of sale (a.k.a. a purchase and sale agreement) is the most important legal document in the wholesale transaction as it defines the terms by which the wholesale deal must close. The contract of sale is memorialized in writing and legally enforceable.

A purchase agreement includes standard yet relevant information. The contract most often used in Illinois is 13 pages without amendments or revisions. If you are unfamiliar with contracts (or their legal consequences), it is wise to consult with a real estate attorney for legal advice.

Can A Realtor Wholesale Property In Illinois?

Yes, a Realtor can wholesale property in Illinois. However, it is imperative to note that not every real estate agent or real estate broker is a Realtor. Specifically, a licensed real estate professional who wants to call themselves a Realtor is someone who

• Has Met The Credentials Required To Obtain A Real Estate License In Their Relevant Jurisdiction. - And
• Is A Paying, Active Member Of The Largest Trade Organization In The Nation – The National Association Of Realtors® (NAR).

In Illinois, the largest professional real estate organization is The Illinois REALTORS (IR), with about 50,000 members across the state. Those who are Realtors are held to higher ethical standards (than non-Realtors) because Realtors, as a membership condition, must comply with the NAR’s Code of Ethics.

Real estate wholesaling is an investment strategy that can be used by a Realtor if they choose to act as a service professional and not an agent with fiduciary responsibilities.

The NAR’s Code of Ethics denotes that a licensed professional representing a client must comply with the mandates defined by your fiduciary capacity as a licensed agent. However, with appropriate disclosure, a licensed realtor can apply their training and experience to negotiate a wholesale transaction rather than establish an agency relationship with hard and fast rules.

A real estate wholesaler, especially one with experience and connections, can easily transact a wholesale deal – if they do not represent a party as a licensed agent with fiduciary duties. However, because of the revised law, Illinois Realtors have the license to legally transact multiple wholesale properties.

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*For in-depth training on real estate investing, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE Webinar Training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

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Is Virtual Wholesaling In Illinois Feasible?

Virtual wholesaling is a clear option for Illinois wholesalers who seek to operate in geographies with fewer restrictions. As technology and innovation continue to evolve, these advances continue to create and transform the ways in which real estate investors have access to different markets. In fact, virtual wholesaling is a great way to circumvent the licensing requirements enacted by RELA’s recent revisions.

The following offers some valuable insight into just how important the internet has become to the real estate business. On average, in 2022, the NAR survey revealed that 93% of buyers used an online website when searching for a home to buy – and these are not real estate professionals. However, there is an inverse relationship between the age of the buyer and the percentage of buyers in the age group using the internet.

Is Wholesaling In Illinois Easy?

Real estate investing has never been for the faint of heart, but it offers great potential for opportunistic, think-outside-of-the-box investors.

The good news is that if you have a serious interest in learning how to wholesale real estate in Illinois, you don’t have to go it alone, with our Pro Wholesaler VIP Program, you get quality guidance and training available and is easily accessible online. Built and designed for the modern entrepreneur, it is 100% online and is used for local and virtual real estate wholesaling.

Final Thoughts On Wholesaling In Illinois

Real estate wholesaling’s popularity has garnered the attention of investors and those tasked with governing real estate transactions in Illinois. While real estate investing offers no guarantees, the unlimited potential and control of one’s career make it a great fit for entrepreneurs.

For those wholesaling houses in Illinois– the law is clear – if you wholesale one home, you must –

• Wait 12 months to wholesale another investment property – or-
• Earn an Illinois real estate license to wholesale one (or more properties) over the next 12 months. Wholesaling more than one property in a twelve-month violates Illinois license law.
• Learn how to wholesale real estate in other markets virtually, therefore you are not subject to local restrictions.

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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.