From local business to sports teams, corporate companies and more: The city of Dallas, Texas, is thriving, and as a real estate investor, you may be wondering how to capitalize on this.
While there are plenty of real estate business opportunities in Dallas, we’re specifically talking about wholesaling.
Wholesaling real estate offers a fast-track way to profit — no fix and flip required — especially in hot metropolitan areas in Texas.
Whether you’re brand new to wholesaling, or you’re a real estate investor looking to add this opportunity to your portfolio, here’s everything you need to know about wholesaling real estate in Dallas.
Is Wholesaling Real Estate Legal in Dallas?
First things first: Yes, wholesaling real estate is legal in Dallas and the state of Texas! But staying within the legal requirements requires understanding specific deal structures.
Contract Assignment
The most popular method, where you sign a contract with a motivated seller and then “assign” that contract to a cash buyer before closing.
That’s why this method is so advantageous: You never have to purchase the property yourself — just collect an assignment fee, which can range anywhere from $2,000 to $7,000 or more per deal.
More experienced wholesalers have reported fees of $15,000 to $20,000 per transaction.
Double Closing Deals
This strategy involves purchasing the property yourself and immediately reselling it to the end buyer in a back-to-back closing. It’s ideal for maintaining privacy about your fee and avoiding potential legal restrictions around marketing.
Buy-Sell Agreement
In a buy and sell agreement, you buy the property, hold it temporarily, then sell it to the end buyer. This is commonly used when buyers need additional time to secure funding.
Other Legal Cautions to Consider
- No License Required (for Most Deals): You don’t need a real estate license for wholesaling, but unlicensed wholesalers must not act as brokers or publicly market contracted properties.
- Private Marketing Only: Contracts should be marketed privately to your network — never publicly unless you are licensed.
- Disclosure Requirement: Always inform buyers that you are selling an assignment contract.
- Senate Bill 2212: Violating these restrictions (like acting as a broker or public marketing) can result in fines up to 3x your profit per deal.
- LLC Advantage: Forming an LLC protects your personal assets and helps build future business credit.
- Follow Proven Structures: As I explained before, contract assignments, double closings, and buy-sell agreements are the safest deal structures.
Is Dallas a Good Market for Wholesaling?
Yes, Dallas is a good market for wholesaling, especially in 2025. Here’s why:
- Fast-Moving Market: Homes in Dallas spend an average of just 46 days on the market — almost twice as fast as many other major cities. This means that there is a strong demand for housing, and by wholesaling real estate, you can capitalize.
- Strong Income Potential: The average income for a wholesaler in Dallas is about $58,220 per year, with top wholesalers earning up to $65,822, which is high compared to other cities in the United States.
- Investor-Friendly: Dallas boasts robust real estate investment clubs, a thriving tech and job sector, and constant population growth. This creates a large pool of motivated sellers and cash buyers, making deals easier to find and close.
- Deal Flow: With so many neighborhoods in transition right now, wholesalers have no shortage of distressed or undervalued properties to target.
The Top 5 Hottest Wholesaling Real Estate Markets for Dallas
With Dallas being the third-largest city in Texas, what areas are best for wholesaling real estate? They include:
- South Dallas: Rapid redevelopment and affordable deals make it a prime spot for distressed property finds.
- Oak Cliff: This revitalizing historic neighborhood offers great margins and strong investor interest.
- Pleasant Grove: Known for entry-level pricing and properties needing rehab, perfect for wholesalers willing to be creative.
- East Dallas: Gentrification is fueling demand and creating frequent transformation opportunities.
- Far North Dallas: Stable communities draw serious buyers, letting wholesalers move properties quickly.
Conclusion
There’s no doubt about it: Dallas is a thriving market for wholesaling real estate, as long as you abide by the laws and regulations that govern the region.
By focusing on the right neighborhoods, staying on top of legal guidelines, building your network, and committing to furthering your wholesaling eduction, you’re setting yourself up for a well-run wholesaling business.