Hawaii Pre-Licensing National Practice Exam 2025 – Your Complete Prep Guide

Question: 1 / 400

Which best describes the activities of a wholesaler in real estate?

Contracting property for resale at a profit

The activities of a wholesaler in real estate primarily involve contracting properties with the intention of reselling them at a profit. A wholesaler finds properties, often distressed or undervalued, and negotiates a purchase contract with the seller. This contract allows the wholesaler to secure the property at a lower price. The wholesaler then seeks potential buyers, often real estate investors, to assign or sell their contractual rights at a higher price, thus earning a profit from the difference.

This venture relies heavily on understanding the local real estate market and the ability to identify viable investment opportunities. Activities such as assessing property values, managing rental properties, or securing mortgage loans are not the primary focus of a wholesaler's role; instead, those tasks are typically associated with appraisers, property managers, or mortgage brokers, respectively.

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Assessing property values for buyers

Managing rental properties

Securing mortgage loans for clients

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