Cash buyer or wholesaler?
How to tell if a cash home buyer is really a wholesaler
Ask two things: whose name will be on the deed at closing, and whether the contract lets them assign it. An end buyer closes in its own name with its own money and can show proof of funds before you sign. A wholesaler signs you up, then tries to sell your contract to an investor for a fee, and the sale can fall apart if they can't.
By Matan, owner of Tao Home Buyers. Last reviewed . General information, not legal or tax advice.
What is a wholesaler, and why does it matter to you?
A wholesaler puts your house under contract without planning to buy it, then sells the contract to an investor who does.
Some wholesalers tell you up front, and that can be fine if you know and agree. The problem is when a seller doesn't know. You may wait weeks while your contract is shopped around, get a call asking for a lower price, or watch the deal fall apart close to your move-out date. The wholesaler's fee also comes out of what the real buyer is willing to pay you.
It's your house and your choice who you sell to. We just think you should know who you're dealing with. Tao Home Buyers is an end buyer: we buy in our own name, Tao Builders LLC, and close at a licensed title company.
Red flags
Six signs a buyer may sell your contract
- "And/or assigns" after the buyer's name
- The contract lets them sell it to someone else. Ask them to cross it out, or to add "buyer may not assign without seller's written consent."
- A long inspection period they can walk away from
- Two or three weeks to "inspect" often means time to find an investor. If they don't, they cancel and you've lost those weeks.
- Small earnest money, or none at a title company
- A few hundred dollars, or a deposit held by the buyer, costs them nothing to walk away from.
- No proof of funds before you sign
- Someone who is buying with their own money can show it.
- Extra showings for "partners" or "contractors"
- Groups of strangers walking through is often the wholesaler marketing your contract.
- A lower price after the inspection
- Called re-trading. It works best on sellers who have already stopped looking.
Before you sign with anyone
Six questions to ask any cash buyer
1
Will your company be the one buying my house, in its own name?
A real buyer says yes and names the company. A wholesaler may say "we or our assigns" or avoid the question.
2
Can I see proof of funds before I sign?
A buyer with money ready can show a bank statement or a lender letter. If they can't, they may be counting on finding someone else's money.
3
Which title company will close, and can I call them?
You should get a real name and number. Call and ask if they know the buyer and have closed with them before.
4
Does the contract let you assign or sell it to someone else?
Look for words like "and/or assigns" next to the buyer's name. That usually means they plan to sell the contract.
5
How much earnest money, and when does it go to the title company?
Earnest money should go to the title company within a few days of signing, not sit with the buyer.
6
What could make the price change after I sign?
Some buyers lower the price after the inspection once you've stopped looking at other options. Ask what they would need to find to change the number, and get it in writing.
Is wholesaling legal in Florida?
As of October 2026, Florida has no law written specifically about real estate wholesaling, but several general laws apply to it.
- Florida's broker law covers anyone who, for pay, buys, sells or negotiates real property "for another," and it counts an "assignment" as real property. One such act is enough. Doing that without a license is a felony (Fla. Stat. 475.01 and 475.42).
- Listing or advertising property for sale while knowing the seller has no title or authority to sell it is a first-degree felony (Fla. Stat. 817.0311, added in 2024 and widened in 2025).
- Other states now regulate wholesaling directly. Pennsylvania (2024), for example, requires written disclosures and gives sellers a right to cancel. Regulators treat "will you assign my contract?" as something a seller has a right to know.
Your best protection is the contract. Ask for a line that says the buyer may not assign it without your written consent, make sure the earnest money goes to a title company you can call, and have a Florida real estate attorney look it over if anything is unclear. The Florida Bar points out that the closing agent may not represent your personal interests.
Are "we buy houses" companies legit?
Many are, but "we buy houses" can mean three different businesses: buyers who close themselves, wholesalers, and lead companies that sell your information to investors.
A real buyer can tell you whose name goes on the deed, show proof of funds, name the title company and explain how they got to their price. We show you every number behind our offer. Read how we calculate it, and compare it with what listing would leave you using our cash offer vs. listing calculator.
Our answers
Our pledge to you
- We buy in our company's name: Tao Builders LLC, doing business as Tao Home Buyers.
- We don't assign or sell your contract to another investor.
- Our funds are lined up before we sign, and we'll show you proof.
- We close at a licensed title company. We'll give you their name and number so you can call them yourself.
Our earnest money goes to the title company the same day you sign, or the next business morning if you sign after hours. Proof of funds is a letter from our lender, and you can see it before you sign.
Compare your options
Us, an agent, or a wholesaler
Listing with an agent often gets the highest price for a house in good shape when you have time to wait. A cash sale trades some price for speed, certainty and no repairs. Here's an honest side-by-side.
| Tao Home Buyers | Listing with an agent | Wholesaler or lead company | |
|---|---|---|---|
| Who buys your house | Tao Home Buyers, in our own name | A buyer your agent finds, often with a mortgage | Often no one yet. They try to sell your contract to an investor |
| Commissions and fees | None to us | Agent commission plus closing costs | Their profit is built into the price |
| Repairs and cleanup | None. Leave what you don't want | Usually needed for top price, plus buyer repair requests | None |
| Showings | One walk-through | Many, often over weeks | Several, for the investors they bring |
| Timeline | As few as 10 days, or your date | Often 2 to 4 months or more | Depends on finding a buyer |
| Certainty | Funds are lined up before we sign | Buyer's loan can fall through | Deal can fall apart if they can't resell |
| Who you talk to | Matan, start to finish | Your agent, their agent, lenders | Often a call center or a hand-off |
Some wholesalers tell you up front what they do. Ask any buyer the six questions on our end-buyer page.
FAQ
Questions about wholesalers
Is wholesaling legal in Florida?
As of October 2026, Florida has no law written specifically about real estate wholesaling. Other Florida laws still apply: brokering someone else's property for pay without a license is a felony under Fla. Stat. 475.42, and advertising property for sale without title or authority is a felony under Fla. Stat. 817.0311. Several other states now require wholesalers to disclose what they are doing in writing.
Are we buy houses companies legit?
Many are, but they work in different ways. Some buy and close themselves, some sell your contract to someone else, and some are lead companies that pass your information to investors. Ask who will be on the deed, ask for proof of funds, and read the contract for assignment language before you sign.
What does and/or assigns mean in a real estate contract?
It means the buyer can hand the contract to someone else, who then buys your house instead. It is the clause wholesalers use to sell your contract. You can ask for it to be removed.
Is a double closing the same as wholesaling?
It is a form of it. The wholesaler buys your house and resells it to their buyer the same day, often with the second buyer's money. You may never know the resale price, and the deal still depends on that second buyer.
Can I get out of a contract with a wholesaler?
It depends on the contract. Read the cancellation and default sections, and talk to a Florida real estate attorney before you sign anything new. Florida's foreclosure-rescue law adds extra cancellation rights in some foreclosure situations.
Sources
General information, not legal advice. Laws change, so check the source or ask a Florida attorney.
- Fla. Stat. 475.01, definitions of broker and real property (Florida Senate, 2026)
- Fla. Stat. 475.42, violations and penalties (Florida Senate, 2026)
- Fla. Stat. 817.0311, advertising property without title or authority (Florida Senate, 2026)
- Pennsylvania Act 52 of 2024, wholesale disclosure rules (Pennsylvania General Assembly)
- The Florida Bar, "Buying a Home" consumer pamphlet
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We buy houses in Pinellas, Hillsborough and Pasco counties, including St. Petersburg, Clearwater, Largo, Tampa, Brandon, Plant City, New Port Richey, Wesley Chapel and Zephyrhills.