If you’ve heard the word “wholesaling” thrown around in real estate circles but weren’t totally sure what it meant — you’re not alone. A lot of agents hear the term and think it’s complicated. It’s really not. Let’s break it down in plain English.
Think of It Like a Middleman Deal
Imagine someone finds a house that needs a lot of work. The owner wants to sell fast and doesn’t want to deal with fixing it up. A wholesaler steps in and says, “I’ll buy your house.” But here’s the twist — the wholesaler doesn’t actually plan to fix it or live in it. Instead, they find another buyer (usually an investor) who will buy it, fix it up, and either sell it or rent it out.
The wholesaler makes money by selling their right to buy the house — not the house itself. That right is called a contract. The wholesaler gets the house under contract at a low price, then sells that contract to an investor for a slightly higher price. The difference is the wholesaler’s profit. Simple as that.
Here’s a Quick Example
- A homeowner agrees to sell their house for $80,000
- The wholesaler puts the house under contract for $80,000
- The wholesaler finds an investor willing to pay $95,000 for that contract
- The wholesaler walks away with $15,000 — without ever owning the house
The investor gets a discounted property. The seller gets a fast, hassle-free sale. The wholesaler gets paid for connecting the two. Everyone wins.
Why Do Sellers Work With Wholesalers?
Most sellers who go through a wholesaler are in a tough spot. They might be facing foreclosure, going through a divorce, dealing with an inherited property, or just need cash fast. They’re not looking for top dollar — they want speed and simplicity. Wholesalers offer exactly that.
What Kinds of Houses Do Wholesalers Deal With?
Wholesalers typically focus on:
- Distressed properties (homes that need major repairs)
- Vacant or abandoned homes
- Properties with motivated sellers who need to close quickly
- Off-market homes that never hit the MLS
These are houses that most traditional buyers wouldn’t touch — but investors love them because they can fix them up and profit from them.
Where Do Real Estate Agents Fit In?
This is where it gets interesting for you. As a real estate agent, you can work with wholesalers to bring buyers to the table. Wholesalers have deals, and investors need deals. If you have buyers in your network who are looking for investment properties, you can connect them to wholesale deals and get paid for doing so.
You don’t have to list the property. You don’t have to manage a long closing process. You simply bring a qualified buyer to an existing deal.
How Does Your Commission Work?
At Premier Fort Properties, we believe agents should be paid fairly for their work. When you bring a buyer to one of our deals, you earn a commission — it’s straightforward and transparent. We want to make it easy for agents to work with us and keep bringing buyers our way.
Want to know exactly how the numbers break down? We’ve put together a full breakdown just for agents. Click here to learn exactly how commissions work when you bring a buyer to Premier Fort Properties.
Legal Disclaimer & Important Disclosures
The information provided in this blog post is for educational and informational purposes only and does not constitute legal advice, financial advice, real estate brokerage services, or a solicitation to buy or sell real estate. Premier Fort Properties is a real estate wholesaling company and is not a licensed real estate brokerage, real estate agent, or real estate attorney. Nothing in this post should be interpreted as creating a client-attorney, broker-agent, or fiduciary relationship between Premier Fort Properties and any reader, agent, buyer, seller, or brokerage.
For Real Estate Agents & Brokers — Please Read Carefully:
By reading this blog post and/or engaging with Premier Fort Properties in connection with any wholesale transaction, you acknowledge and agree to the following:
Nature of Wholesale Transactions. Wholesale real estate deals involve the assignment of a purchase and sale contract — not the direct sale of real property. Premier Fort Properties markets and sells its equitable interest in a property (i.e., its contractual right to purchase), not the deed or title to the property itself. All buyers, including those introduced by licensed real estate agents, are purchasing an assignment of contract.
No Representation of Buyers or Sellers. Premier Fort Properties does not represent buyers, sellers, or agents in any fiduciary capacity. Real estate agents who introduce buyers to our deals are acting in their own professional capacity and are solely responsible for complying with all obligations imposed by their license, their brokerage, the Massachusetts Board of Registration of Real Estate Brokers and Salespersons, and the Code of Massachusetts Regulations Title 254. Agents are encouraged to consult their broker of record before participating in any wholesale transaction.
Independent Due Diligence Required. All properties offered through Premier Fort Properties are sold as-is, where-is, with no warranties — express or implied — regarding the physical condition, habitability, title status, zoning compliance, environmental condition, or value of the property. Buyers and their agents are solely responsible for conducting independent inspections, title searches, and all other due diligence prior to closing. Massachusetts is a caveat emptor (“buyer beware”) state, which means buyers take on the risk of property condition.
Lead Paint & Mandatory Disclosures. For properties built prior to 1978, federal law under the Residential Lead-Based Paint Hazard Reduction Act of 1992 requires disclosure of known lead-based paint hazards. Agents and buyers are responsible for ensuring all applicable federal and Massachusetts state disclosure obligations are met, including but not limited to lead paint, asbestos, and septic system disclosures as required under Massachusetts law.
No Guarantee of Commission. Any commission arrangement between Premier Fort Properties and a real estate agent is governed solely by a separate, written agreement executed between the parties prior to the introduction of a buyer. No commission shall be owed to any agent who has not entered into a prior written agreement with Premier Fort Properties. Verbal agreements regarding compensation are not binding. Agents should not assume any commission arrangement exists unless it has been confirmed in writing.
Licensing Compliance. Real estate agents participating in wholesale transactions must ensure their activities comply with Massachusetts real estate licensing law. Specifically, agents should be aware that referring buyers to wholesale deals may trigger disclosure obligations to their clients under 254 CMR 3.00, including the 2005 Massachusetts Mandatory Licensee-Consumer Relationship Disclosure requirement. Undisclosed dual agency is illegal in Massachusetts and may result in forfeiture of commission and additional damages.
Not a Solicitation. Nothing in this blog post constitutes a solicitation or offer to enter into any transaction. All transactions are subject to a fully executed written agreement and are contingent upon satisfactory due diligence, clear assignability of the underlying purchase contract, and the consent of all parties as required by the terms of that contract.
Chapter 93A Notice. Premier Fort Properties conducts all transactions in good faith and in compliance with the Massachusetts Consumer Protection Act (M.G.L. c. 93A). Any agent, buyer, or party who believes they have been harmed by any unfair or deceptive act is encouraged to contact Premier Fort Properties directly to resolve the matter before pursuing any legal action.
Consult a Professional. All parties — including real estate agents, buyers, sellers, and investors — are strongly encouraged to consult a licensed Massachusetts real estate attorney before entering into any wholesale real estate transaction. This blog post is not a substitute for qualified legal counsel.
Premier Fort Properties is not responsible for any losses, damages, or legal consequences arising from any party’s reliance on the information contained in this blog post.
