Author’s Note: This is a transcript from my podcast
HB797 didn’t Pass, but it’s still in congress…
In early October, North Carolina had a bill on the table that would have fundamentally changed how wholesalers operate in the state. HB797 (also called H797) was scheduled for a Senate vote, and if it had passed, it would have essentially outlawed wholesaling as we know it.
It didn’t pass. But it still may pass in a future session of congress.
What HB797 Would Have Done
The bill would have implemented strict regulations on wholesaling, including:
Extended cooling-off periods for sellers. Sellers would have had longer to rescind their contracts, making deals less certain and timelines less predictable.
Increased disclosure requirements. Wholesalers would have had to provide more detailed disclosures to both sellers and buyers about the nature of the transaction.
Licensing requirements. This was the big one: wholesalers would have needed to obtain a real estate license to operate legally.
For most of us operating lean, this would have been a nightmare. Getting a real estate license means 70-90+ hours of classroom work, dozens more hours studying for the exam, passing that exam, and then ongoing continuing education requirements. It’s designed for agents, not for wholesalers who want to stay lean and focused on deal-making.
Other States Have Already Gone This Route
North Carolina wouldn’t have been alone. Several states have already passed anti-wholesaling laws or are working on them:
- Ohio – Already passed restrictions
- Illinois – Already passed restrictions
- South Carolina – Already passed restrictions
- Pennsylvania – Some of the strictest laws against wholesaling in the country
The pattern is clear: Real Estate Commissions across the country are pushing back against wholesaling and trying to regulate it out of existence—or at least require that wholesalers be licensed like agents.
Why This Is Happening
The stated reason is consumer protection. Real Estate Commissions argue they’re trying to prevent sellers from being taken advantage of or subjected to deceptive practices. There’s some validity to that concern—there are bad actors in wholesaling who operate without integrity.
But there’s also a business angle. Large-scale wholesalers like New Western and Home Investors are doing massive volume and making significant money in markets that traditionally belonged to real estate agents. The licensing requirement would either push these companies to hire licensed agents (increasing their costs) or push them out of the market entirely.
What Actually Happened
Here’s the good news: HB797 didn’t go to a Senate vote in early October as scheduled. Instead, it got postponed into the future, which means it either lost priority or there wasn’t sufficient support to advance it right now.
This gives us breathing room. But it’s not a permanent solution—it’s a delay.
What This Means for Your Business
If you operate in North Carolina, stay aware. If similar bills come up in your state, you need to know about them. Here’s what I recommend:
Stay informed. Follow your state legislature’s activity on real estate and wholesaling. Join local real estate investing groups and associations that track this stuff.
Operate with integrity. The best defense against these regulations is to operate your business honestly. Disclose to sellers and buyers. Be fair in your dealings. Don’t use deceptive practices. If wholesaling becomes regulated, the wholesalers who survive are the ones who’ve been operating above reproach anyway.
Advocate for your business model. If bills like this come up again, consider reaching out to your legislators. Explain that wholesaling creates market liquidity and opportunities for distressed property owners. Don’t be silent.
Have a backup plan. If licensing became required in your state, could you get a license? Could you hire someone with a license? What would your business look like? It’s worth thinking through.
The Bigger Picture
There’s a tension here worth acknowledging. Real Estate Commissions want to regulate wholesaling. Tech-enabled wholesale platforms want market access. Individual wholesalers want freedom to operate. Sellers want protection from scams. Buyers want good deals.
Everyone has a legitimate interest. The question is how those interests get balanced.
My personal take: I operate with integrity. I disclose what I’m doing. I treat sellers and buyers fairly. And I like being able to operate without jumping through unnecessary licensing hoops. If regulations come that require licensing, I’ll adapt. But I’m not going to apologize for the business model—wholesaling serves a real market need.
What Happened This Week
For me, HB797 not going to a Senate vote was a win. I don’t have a real estate license, and I don’t want one. Wholesaling the way I’m doing it—lean, focused, integrity-driven—is working. Licensing would complicate that without adding value to my business.
But I’m keeping my eye on this. If it comes back up, I’ll be paying attention. And if you’re in a state considering similar legislation, you should be paying attention too.
The good news: we still have time to shape how this plays out.