My lawyer says wholesaling is illegal. Quote Below

[Irwin Haddox]

"Irwin,

I've spent some time thinking about your proposed business model and, also, doing some research and, taking a conservative approach, have concluded that you would be selling real estate and therefore would be subject to real estate sales licensing laws. When you sign a contract to purchase property, you acquire an equitable interest in the property and it is that equitable interest, that is, the right to compel conveyance of the legal [or record] title that you are selling, even if you state you are just assigning a contract right. Under the real estate brokers' law, Title 24, Chapter 29 of the Delaware Code, a person who provides real estate services must be licensed. The statute provides that "real estate services shall also include the marketing and advertising of properties for sale". That is how you are going to find your buyers.

I know this is not the answer you were looking for but you did indicate you want to stay out of trouble."

Now how do I proceed? Do I need a brokers license or a real estate agent license? What are your thoughts?

[Will Barnard]

To wholesale in just about every state, you need to either A - get licensed, B - purchase the property by closing the escrow with title transferring to you and then selling (double closing), or C - form an entity, vest your purchase contract in the name of that entity, then bring your all cash wholesale buyer in as your "partner" where he buys you out for your fee at closing or day after closing. A simple operating agreement would suffice for this.

The moment you publicaly advertise the property you have under contract for sale to someone else, you have now engaged in real estate activities without a license which is illegal in most states.