New Wholesaling Laws Are Here. Is Your Business Ready?
Table of Contents
I’ve had the same conversation at least a dozen times over the past few weeks.
“Have you seen what’s happening in Missouri?”
The answer is yes.
But I actually don’t think Missouri is the story. I think it’s the beginning of something much bigger.
If you’re a real estate wholesaler, it’s time to pay attention. The rules are changing. Missouri is one of several states taking a closer look at wholesale transactions, and I don’t believe it’ll be the last.
This isn’t just about one state.
Missouri recently passed new legislation that changes how real estate wholesalers must conduct certain transactions. The law goes into effect on August 28, 2026, and wholesalers have a limited period to ensure they’re operating under the new requirements.
This isn’t happening in a vacuum.
Illinois has already passed legislation affecting wholesalers. South Carolina has taken similar steps. Across the country, lawmakers are looking more closely at how wholesale real estate deals are structured and whether homeowners fully understand the transactions they’re entering into.
When multiple states start moving in the same direction, I pay attention. That’s usually a sign of where the industry is headed.
Why are these laws changing?
The goal behind these laws is transparency for sellers.
Supporters of the legislation argue that homeowners should clearly understand when they’re entering into a wholesale transaction and when the buyer intends to assign the contract rather than purchase the property themselves.
Not everyone agrees with the approach.
Organizations like the National Association for Housing Revitalization (NAHR) have worked with lawmakers to advocate for investors and preserve opportunities for responsible wholesalers.
Whether you agree with the legislation or not doesn’t really matter. It’s here.
And smart investors adapt.
At Left Main REI, we’ve been preparing for changes like these long before they became headlines. We believe this is part of a broader shift in the industry, which is why we’re investing in the technology, operational workflows, and strategic partnerships wholesalers need to stay compliant and continue closing deals, regardless of when these laws reach their state.
What does this mean for wholesalers?
If you’re wholesaling in Missouri, or another state that adopts similar legislation, you’ll need to understand how your deals are structured.
For many investors, there are two practical paths.
Option 1: Follow the required disclosure process
The first option is to follow the disclosure requirements outlined in the law.
That means providing the required information to the seller and following the timelines established by the legislation before completing certain wholesale transactions. While it varies state-by-state, at a high level it means you’ll need to identify yourself as a wholesaler who intends to reassign the contract. You may be required to disclose details about the deal (potentially including your profit), and then wait two weeks before the closing can happen.
For wholesalers, that’s a significant change.
Our business moves fast. Every extra day creates opportunities for risk:
- A buyer backs out.
- The seller changes their mind.
- Financing falls apart.
- Another investor steps in.
Time matters.
Option 2: Complete a double closing
The second option is a double closing.
Instead of assigning the contract to another buyer, you purchase the property yourself and then immediately sell it to your end buyer.
Two closings. One property. Usually on the same day.
Many experienced investors already use this strategy, but these new laws will make it much more common.
There’s just one challenge: You have to fund the first closing.
Not every wholesaler has the cash sitting in their bank account to purchase a property before selling it a few hours later.
How transactional funding can help
This is where transactional funding becomes incredibly valuable.
Transactional funding gives wholesalers access to short-term capital so they can complete the first closing in their own name. Once the second closing takes place, the funding is repaid, along with the agreed funding fee.
For wholesalers operating in states with stricter disclosure requirements, this can provide a path to completing deals without tying up hundreds of thousands of dollars in cash.
I think we’re going to see transactional funding become a much bigger part of our industry over the next few years.
Not because investors suddenly want it, but because they need it.
Don’t wait until your state changes
One of the biggest mistakes investors make is assuming legislation in another state doesn’t affect them.
Today it’s Missouri.
Illinois has already moved.
South Carolina has too.
If this trend continues, more states are likely to consider similar legislation. The investors who prepare now won’t be scrambling later. They’ll already have systems, funding partners, and processes in place.
That’s a much better position to be in.
LIVE WEBINAR
New Wholesale Laws:
What to Know,
What to Do.
Wednesday, August 5 | 3:00 PM ET
This is an important conversation, and it’s one every wholesaler should be paying attention to.
That’s why we’re hosting a live webinar with people who are watching these changes every day.
Join me along with:
- Tom DiVittorio from Left Main REI
- Chris Bass from New Western
- Michele Duke from National Association for Housing Revitalization (NAHR)
We’ll cover:
- What the Missouri legislation means for wholesalers
- Why we’re seeing similar changes across multiple states
- How experienced investors are adapting
- When a double closing makes sense
- How transactional funding works
- What you should be thinking about before these changes reach your state
- If wholesaling is part of your business, I wouldn’t wait until legislation lands in your backyard.
Now is the time to understand what’s changing, put the right systems in place, and stay ahead of what’s coming. At Left Main REI, that’s exactly what we’re helping wholesalers do.
Sources
- Missouri Association of Real Estate Investors. Missouri Wholesale Disclosure Law. https://marei.org/missouri-wholesale-disclosure-law/
- Missouri Senate. 2026 Senate Bill 973. https://www.senate.mo.gov/BillTracking/Bills/Billinformation?year=2026&billid=321
- BiggerPockets Forum. Missouri Added a Bill for Wholesaling. https://www.biggerpockets.com/forums/888/topics/1294565-missouri-added-a-bill-for-wholesaling
LIVE WEBINAR
New Wholesale Laws:
What to Know,
What to Do.
Wednesday, August 5 | 3:00 PM ET
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