How Legit Are Wholesalers In Real Estate

What are those pesky "We Buy Houses" signs you sometimes see at the street corners or in front of houses in dire need of repair? Those houses are offered by real estate wholesalers, people with no accreditation or license unlike real estate agents, wholesalers do not have to pass any type of exam or be certificate to practice. So how does wholesaling work? Wholesalers usually send tons of direct mail to stressed or motivated sellers, usually due to financial difficulty or being unable to be current on their mortgage payments. Once they find a seller they try to make a deal to sell their house for well below market rate as the seller is motivated and cannot work with a real estate agent to property list their property they may accept the low ball offer. The wholesaler then turns around and reaches out to investors looking for deals on real estate forums and other places. Once a match is made the wholesaler makes their commission on the deal.