What is wholesaling real estate, and is it legal in Florida?

“Wholesaling” refers to buying and selling real estate sales contracts. Wholesalers seek to find investors to buy distressed properties to renovate or develop. The wholesaler contracts with the property owner to find a buyer for their property within a set period of time. Property owners may deal with wholesalers because their property is worth little, and they do not want to invest time and effort into selling it.  

The wholesaler enters into a wholesale real estate contract with the property owner and then reassigns the contract to an investor at a price that includes an additional wholesale fee of 5% to 10% of the total property price.

Wholesale real estate is legal in Florida. However, wholesalers must understand real estate law and be sure they do not practice real estate brokerage without a license.