Wholesale real estate refers to a strategy within the real estate market where an investor purchases properties at a discounted price and then sells them to other buyers, typically other investors, for a profit. The wholesaler acts as an intermediary, connecting motivated sellers with buyers who are looking for investment opportunities.

The key aspect of wholesale real estate is finding properties that are undervalued or have potential for improvement, negotiating a favorable purchase price, and then assigning the contract to another buyer who will take over the property. The wholesaler makes a profit by charging an assignment fee or by selling the contract at a higher price than what they initially paid.

Wholesaling can be a lucrative strategy for real estate investors who can find motivated sellers, negotiate effectively, and identify buyers who are willing to purchase the properties at a higher price. However, it requires knowledge of the local market, an understanding of the property's value, and strong networking skills to successfully execute wholesale deals.

It's important to note that regulations and laws surrounding wholesale real estate transactions may vary by jurisdiction. Therefore, it's advisable to consult with legal and real estate professionals familiar with the local laws before engaging in wholesale real estate activities.