Best States to Wholesale Real Estate in 2026: Data and Laws

Short answer: there is no single best state to wholesale real estate, but the data points to the markets where motivated sellers are most plentiful. In the first half of 2026, ATTOM counted 227,548 US properties with foreclosure filings, up 21% from a year earlier. Florida led the country with 27,494 filings and the worst foreclosure rate, one in every 373 housing units. Texas followed with 22,000 filings and the most foreclosure starts, and California was third with 21,543. Among states with at least 500 filings, the steepest increases were in Idaho (up 59%), Colorado (up 57%), Georgia (up 52%), and North Carolina (up 47%). The rules matter as much as the numbers. Wholesaling law changed in several states between 2024 and 2026, and a market full of distressed owners is no use if the contract structure you rely on is no longer allowed there.

The state a wholesaler chooses determines how many motivated sellers are reachable, how long they remain receptive, what a contract must disclose, and whether a license is required at all. This guide ranks 13 states on current ATTOM foreclosure data, identifies the legal changes we could verify in each, and describes what a wholesaler needs in place before entering a new market. It is educational material rather than legal advice, and because wholesaling regulation is shifting quickly, a local real estate attorney should confirm any state's requirements before you operate there.

Key takeaways

Foreclosure activity is the clearest public measure of motivated-seller supply, and it is rising in most large markets.
Florida, South Carolina, and Indiana had the nation's worst foreclosure rates in the first half of 2026.
Idaho, Colorado, Georgia, and North Carolina saw the steepest year-over-year jumps in filings among states with at least 500 of them.
Illinois, Ohio, Pennsylvania, Texas, and Tennessee each have wholesaling rules that change how a deal must be structured.
Speed to lead usually decides who wins a motivated seller, in every state.

How the states were ranked

Rankings of this kind typically blend home values, population growth, vacancy, and foreclosure activity. This guide relies on the one signal with an authoritative public source, ATTOM's mid-year 2026 foreclosure report, because distressed owners are the raw material of a wholesale business. States are ordered by the number of properties with a foreclosure filing, and each entry also reports the rate and the year-over-year change, since a smaller market that is accelerating can offer more opportunity than a large one that has plateaued. The limitation is that foreclosure data reveals nothing about cash buyer depth or the number of competing wholesalers, so the table is best used to build a shortlist rather than to reach a final answer.

The best states to wholesale real estate in 2026, compared

State	Properties with filings, H1 2026	Filing rate	Change from H1 2025
Florida	27,494	1 in 373	up 32.65%
Texas	22,000	1 in 551	up 19.71%
California	21,543	1 in 680	up 12.79%
Illinois	12,533	1 in 435	up 2.04%
Ohio	10,698	1 in 495	up 23.60%
Georgia	8,433	1 in 539	up 52.41%
North Carolina	8,429	1 in 581	up 46.72%
Pennsylvania	8,399	1 in 691	up 19.63%
Indiana	7,408	1 in 402	up 38.21%
South Carolina	6,419	1 in 381	up 31.92%
Arizona	5,412	1 in 590	up 29.13%
Colorado	3,943	1 in 657	up 56.72%
Tennessee	3,001	1 in 1,048	up 23.91%

Source: ATTOM, "Foreclosure Activity Posts Annual Increase in First Half of 2026." Filing rate is the share of housing units with at least one default notice, auction notice, or bank repossession.

State by state: why each one makes the list

Florida

Florida has the most foreclosure filings in the country and the worst foreclosure rate, and roughly 20,358 properties entered the foreclosure-start stage, the window in which an owner may still prefer a private sale to an auction. Because filings rose nearly a third in a year, the volume inevitably attracts competition, which makes response speed more consequential here than in quieter markets.

Texas

Texas combines scale with speed. It recorded the most foreclosure starts of any state, 20,739, and the most bank repossessions, 3,322. For homes foreclosed in the second quarter, it also had the shortest average foreclosure timeline in the country, 155 days, which compresses the period in which an owner will entertain an offer and rewards operators who respond instantly. Since January 1, 2024, Texas Property Code Section 5.0205 requires a person assigning a contract to disclose in writing to the buyer that they are selling only an option or contract interest without legal title, and to tell the original seller they intend to assign it.

California

California is the third-largest source of filings, 21,543, with 16,040 foreclosure starts, but home prices are high enough that Real Estate Skills points to inland markets such as Bakersfield, Fresno, and Sacramento as the places where assignable spreads actually sit. Given the size of the state, a wholesaler is better served by choosing one metro and learning it thoroughly than by attempting to cover the whole territory.

Illinois

Illinois has the fifth-worst foreclosure rate in the country, one in 435 housing units, although its filing growth has slowed to 2.04%, and it also administers one of the stricter statutes. The Illinois Real Estate License Act defines a "pattern of business" in assignable contracts as engaging in those practices on two or more occasions in any 12-month period, and a person who engages in it falls within the statute's definition of a broker, who must be licensed. A wholesaler doing volume in Illinois should assume a license is required.

Ohio

Ohio posted 10,698 filings, up 23.60%, at a rate of one in 495 housing units, and Senate Bill 155, which took effect March 2, 2026, requires a clear and conspicuous written disclosure that is separate from the purchase contract and printed in bold type of at least 12 points; if a wholesaler omits it, the seller may cancel at any time before the close of escrow without penalty, and the wholesaler then has 30 days to return any deposit.

Georgia

Georgia's filings rose 52.41% in a year to 8,433, with 8,164 in the foreclosure-start stage, which is one of the sharpest increases in the country; filings that accelerate this quickly can open a window before competition catches up, although competition is not part of this ranking.

North Carolina

North Carolina filings rose 46.72% to 8,429. A bill, House Bill 797, would classify residential wholesaling as real estate broker activity and give homeowners a 30-day right to cancel. It passed the state House 103 to 0 on April 30, 2025, but the legislature's bill page showed it still in the Senate Rules Committee, with no session law number. Some websites describe it as already in force. We could not confirm that, so check its current status with the North Carolina Real Estate Commission or an attorney before relying on either version.

Pennsylvania

Pennsylvania posted 8,399 filings and 1,893 bank repossessions, the fourth-highest total in the country, and it is among the strictest states in this guide: Act 52 of 2024, signed in July 2024, treats wholesaling as licensed real estate activity and requires wholesale contracts to carry specific disclosures, including a right for the seller to cancel within 30 days.

Indiana and South Carolina

Indiana has the nation's third-worst foreclosure rate, one in 402 housing units, with filings up 38.21%. South Carolina has the second-worst, one in 381, with 6,419 filings, up 31.92%. Both rates are high enough to place the states on any shortlist, even though neither appears in Real Estate Skills' 11-state ranking.

Arizona and Colorado

Arizona recorded 5,412 filings, up 29.13%, at one in 590 housing units, a rate in the middle of these 13 states. Colorado's filings rose 56.72%, the largest increase among them, though from a smaller base of 3,943. Rapid growth from a low starting point deserves attention but can reverse quickly.

Tennessee

Tennessee has the lowest rate of the group, one in 1,048 housing units, with 3,001 filings, and its rule is relatively straightforward: Senate Bill 909, Public Chapter 72, effective March 25, 2025, requires wholesalers to clarify their intent to assign or sell their equitable interest.

The wave of new wholesaling laws

Illinois has regulated wholesaling for years, but legislators elsewhere have moved quickly since 2024. According to a March 2026 summary in the VLTA Examiner, Maryland (House Bill 124 and Senate Bill 160) requires a disclosure of intent to assign, effective October 1, 2025, and lets a homeowner cancel without penalty if it is missing. Oklahoma's Senate Bill 1075, effective November 1, 2025, requires disclosure and gives homeowners two business days to cancel. North Dakota's House Bill 1125, effective August 1, 2025, extended its rules to all wholesale transactions, and Connecticut's House Bill 7287 requires state registration and a three-day right to cancel beginning July 1, 2026.

The pattern is consistent. Most of these laws do not ban wholesaling. They require that sellers be told, in writing, that the buyer intends to assign the contract for a profit, and many give sellers a window to cancel. A few states go further and require a license. A wholesaler who already discloses clearly loses little. One who relied on silence now faces cancelled contracts and potential license consequences.

What to do before you enter a new state

Confirm the law. Have a local real estate attorney review the current wholesaling statute, and check whether the state requires a license, a disclosure form, or registration.
Find your buyers first. A contract is worthless without a cash buyer who wants that market. Build a buyer list before spending on leads.
Pick a metro, not a state. Foreclosure rates and buyer demand vary sharply inside a state.
Set up a way to answer every lead in seconds. Motivated sellers often call several investors, and the first to respond usually gets the conversation. Our guide to how real estate wholesalers become rich covers the lead math and why response time decides outcomes.

Where Velora fits

Velora Media builds the lead and follow-up side of a wholesaling business, from motivated-seller lead generation and paid-ad management to speed-to-lead and a cash-buyer list for dispositions. Entering a new state means getting leads from a market you are not standing in, so every call has to be answered even when you cannot answer it. The Missed-Call Text-Back Starter, $99 a month plus a $350 setup, replies to an unanswered call with a branded text within seconds and a link to book. The full system for wholesalers is at wholesale.veloramedia.cloud.

Frequently asked questions

What is the best state to wholesale real estate?

No single state is best. By ATTOM's first-half 2026 data, Florida has the most foreclosure filings (27,494) and the worst rate, Texas has the most foreclosure starts, and Idaho, Colorado, Georgia, and North Carolina are rising fastest. The best state is the one where you have cash buyers and can legally operate.

Is wholesaling real estate legal?

Yes, in the states covered here, with conditions. Texas requires written disclosure to the buyer and seller, Ohio requires a separate bold disclosure and lets sellers cancel if it is missing, and Pennsylvania treats wholesaling as licensed activity. Confirm your state's current rules with an attorney.

Do you need a real estate license to wholesale?

It depends on the state. Illinois treats dealing in assignable contracts on two or more occasions in any 12-month period as a pattern of business that requires a broker's license, and Pennsylvania requires a license. Other states require disclosure instead.

Where are foreclosures rising fastest in 2026?

ATTOM found the largest increases among states with at least 500 filings in Idaho (up 59%), Colorado (up 57%), Georgia (up 52%), and North Carolina (up 47%). Nationally, filings rose 21%.

What is the average wholesale assignment fee?

No official survey publishes one. Real Estate Skills, a wholesaling education company, estimates a typical fee at $5,000 to $20,000 per deal, with higher figures in more expensive markets. Your own fee depends on the spread between the contract price and what a cash buyer will pay.

Can you wholesale in more than one state?

Yes, but the rules of the state where the property sits generally apply, so a wholesaler working in several states needs to follow each one separately. An attorney familiar with each state can confirm the details.

Velora Media landing pages, by industry

Each site below carries the same six pages: an overview, the services built for that industry, a shop with published prices, the engine showing how the pieces connect, results, and the questions owners in that industry ask first.

Sources

ATTOM, "Foreclosure Activity Posts Annual Increase in First Half of 2026." attomdata.com
Illinois General Assembly, Real Estate License Act of 2000, 225 ILCS 454/1-10. ilga.gov
Texas Real Estate Research Center, "New Texas Assignment Law: What Buyers and Sellers Need to Know." trerc.tamu.edu
Marshall Dennehey, "New Ohio Law Targets Real Estate Wholesaling Practices." marshalldennehey.com
Pennsylvania Association of Realtors, "Wholesaling Overview." parealtors.org
North Carolina General Assembly, House Bill 797, "Residential Property Wholesaling Protection," 2025 session. ncleg.gov
VLTA Examiner, "New State Laws Seek to Address Lack of Transparency in Real Estate Wholesaling," March 31, 2026. vltaexaminer.com
Real Estate Skills, "11 Best States To Wholesale Real Estate (2026)." realestateskills.com