Iowa requires a broker license to wholesale a home.
Iowa's HF 2394 has been in effect since July 1, 2024: holding a home under contract to resell your interest in it requires a real estate broker license, plus disclosures to everyone involved. Here's the plain-English version, and where funding fits if you buy the property instead of assigning the contract.
What the law does
Iowa's HF 2394, effective July 1, 2024, put wholesaling under real estate licensing. In plain terms: holding a contract on a home — an equitable interest, but not title — for the purpose of reselling that interest makes you a wholesaler who must be a licensed real estate broker. Wholesalers also have to disclose to everyone involved that they hold only an equitable interest and may not be able to convey title. It applies to residential property, and the penalties are real — a civil fine up to $10,000, or 10% of the sale price, per violation.
This is a plain-English summary, not legal advice — confirm your own situation with an Iowa attorney.
Assigning versus buying
The rule attaches to holding an equitable interest — a contract on a home you don't own — and reselling it. A double close is a different transaction: you actually buy the home from the seller, take title, then sell to your end buyer, often the same day. Once you hold title, you're no longer holding just an equitable interest. Whether that changes your obligations on a given deal is a question for an Iowa attorney, and it depends on the facts. What we can speak to is the practical part: buying the home takes real money at the closing table, even if you own it only briefly.
Where transactional funding fits
We fund the purchase for the short window between the two closings, repaid out of your buyer's proceeds, so your own capital stays free. You bring a real end buyer and a closing agent; we bring the money for the hours in between.
Budget for it honestly. A double close means a second set of closing costs — commonly around 3% — plus the funding fee. Run that against what an assignment would have paid you before you assume the structure works.
Need the funds to close?
Tell us the deal — type of funding, amount, and closing date. We answer quickly, and we tell you straight if it isn't a fit.
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