Wholesalers cancel contracts a lot While the wholesaler is out there trying to make a deal work, the homeowner and realtor are wasting valuable marketing time. Ultimately, the wholesaler cancels his contract and the seller has to start marketing the home again. They ask us this question a lot. No, wholesale real estate is not illegal, nor does it need a real estate license.
So why do so many people ask this? This is where it gets difficult. A wholesaler does need a license if they intend to negotiate a real estate transaction, that is, if they want to organize a purchase or sale.