What Is Real Estate Wholesaling?
Real estate wholesaling is when a person agrees to buy a house (or other real estate property) but doesn’t actually plan to keep it. Instead, they find someone else to buy it before the deal is done. This way, the first person—called a wholesaler—can make money without ever owning the house.
Sometimes, the wholesaler’s contract lets them put the house up for sale, show it to other people, or even make small changes to it before the first sale is finished. The original homeowner might not always realize this if the contract isn’t clear.
Wholesalers usually look for properties that need fixing up. They might tell the seller they can pay in “cash” and close the deal quickly, but sometimes those promises don’t come true.
Right now, wholesalers don’t need a special license, but if they have a real estate license, they must tell the seller.
Why This Can Be a Problem
If the contract is confusing, the wholesaler hides their license, or the “fast” sale never happens, the seller can lose time and maybe even money.
How to Stay Safe
- Read the contract carefully before signing.
- Ask a lawyer to check it for wording that allows wholesaling.
New Law in Connecticut
Starting July 1, 2026, all wholesalers in Connecticut will have to sign up with the Department of Consumer Protection (DCP) to help protect homeowners.