Some states require a real estate broker’s license to do more than three wholesale agreements because they consider this activity to be a form of real estate brokerage. The rationale behind this requirement is that a wholesaler who engages in multiple real estate transactions is effectively acting as a middleman between buyers and sellers, and is therefore engaging in brokerage activities.
The specific requirements for a real estate broker’s license can vary from state to state, but typically involve completing a certain number of pre-license education hours, passing a state-administered exam, and meeting other eligibility requirements such as background checks and minimum age requirements.
The following states are known to require a real estate broker’s license for wholesalers who engage in more than three transactions per year:
- Florida
- Georgia
- Illinois
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Nebraska
- New York
- North Carolina
- Oklahoma
- Pennsylvania
- Texas
It’s worth noting that real estate laws and regulations can change over time, so it’s important to consult with a licensed real estate attorney or broker in your state to understand the current requirements for wholesale agreements.
