Wholesalers, generally first-time investors who seek out off-market homes through cold calls or drive-bys, strike deals with homeowners to put homes under contract and then sell the contracts to flippers. They do not take title to homes, fix them up and then list them on the market, as fix-and-flip investors do.
Among those proposing or passing rules about wholesale flipping include the states of Illinois, Oklahoma, Arkansas and Kansas and the city of Philadelphia.
