How To Wholesale Real Estate In California: Step-By-Step (2025)

Wholesaling real estate allows Californian investors to enter the market without buying properties outright.

You find motivated sellers, put their property under a purchase contract, and then assign that contract to a cash buyer, keeping the difference between your contract price and the buyer’s price as your profit. 

In California, wholesaling real estate is legal when selling contractual rights, not the property itself. No real-estate license is required unless acting as an agent or broker. 

It’s a low-capital, quick-turn strategy that builds your market knowledge, cash buyers list, and deal-making skills without tying up large amounts of money or long-term financing.

This guide will tell you everything you need to know about wholesaling real estate in California, starting with the following:

• What Is Wholesaling Real Estate?
• How To Wholesale Real Estate In California (9 Steps)
• Is Wholesaling Legal In California?
• How Much Do Real Estate Wholesalers Make In California?
• Do You Need A License To Wholesale In California?
• Can A Realtor Wholesale Property In California?
• Is Wholesaling In California Easy?
• California Wholesaling Expenses
• Frequently Asked Questions

Do you want to know how to be a real estate wholesaler? Schedule a FREE Strategy Session with us to learn how our Ultimate Investor Program can unlock even more opportunities and strategies in the California market. We'll also help you tailor an investment strategy that's right for you. Don't miss out—take the next step toward maximizing your investment potential today!

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*Before we begin our guide on how to wholesale real estate in California, we invite you to view our video on How To Wholesale Real Estate Step by Step (IN 21 DAYS OR LESS)!

Host and CEO of Real Estate Skills, Alex Martinez, provides a comprehensive, step-by-step guide for beginners to start wholesaling real estate!

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What Is Wholesaling Real Estate?

Wholesaling real estate is a strategy where an investor secures the rights to purchase a property and then sells those rights to another buyer for a profit.

The most common method is the assignment of contract; this involves the investor (wholesaler) entering into a purchase agreement with the property owner and then, through the principle of equitable conversion, transferring (or assigning) this contract to an end buyer for an assignment fee.

Wholesale Real Estate Example

Imagine you find a property worth $200,000 and negotiate a purchase agreement with the seller for $180,000.

Instead of buying the property yourself, you assign this contract to another investor for a fee, perhaps $10,000. The new buyer pays the seller $180,000, and you receive the $10,000 assignment fee.

In cases where a real estate wholesale contract assignment isn’t feasible, investors can attempt a double closing.

This method involves the wholesaler actually buying the property and immediately reselling it to another buyer. While effective, this approach is less popular because it incurs additional closing costs and logistical challenges.

Understanding how to wholesale real estate in California, especially through the assignment of contract method, is crucial for maximizing efficiency and profits in the competitive market for wholesale properties.

Assignment of contract is usually preferred for its simplicity and lower costs compared to double closing.

Why Wholesale Real Estate In California?

Despite California's typical home value of $788,920, according to Zillow, there are plenty of opportunities for investors of every experience level to capitalize on. The state currently has 15,580 properties in foreclosure, 1,563 bank-owned properties, and 3,972 headed for auction, according to RealtyTrac.

Investors can secure properties below market value by focusing on these foreclosures and bank-owned properties and potentially earning significant profits through assignment fees.

The high volume of distressed properties and substantial home values make California an ideal market for wholesaling real estate and allow investors to thrive in this competitive landscape.

Read Also: How To Invest Real Estate In California

How To Wholesale Real Estate In California (9 Steps)

Here's our simple step-by-step process for wholesaling real estate in California:

1. Partner With A Wholesale Mentor
2. Learn California Real Estate Wholesaling Laws And Contracts
3. Understand The California Real Estate Market
4. Build A Cash Buyers List
5. Find Motivated Sellers And Distressed Properties
6. Put Distressed Properties Under Contract
7. Assign Contracts To Cash Buyers
8. Close Deals And Collect Assignment Fee
9. Double Close When Necessary

Partner With A Wholesale Mentor

The first step in the wholesaling process is to partner with an experienced real estate mentor. Like any new career, having guidance from an expert can accelerate your learning curve and help you avoid costly mistakes.

To find a mentor, consider networking at real estate investment groups, attending industry seminars, and joining online forums. Look for someone with a proven track record in wholesaling real estate and a willingness to share their knowledge.

Working with a mentor is a great first step because they offer personalized advice, real-world insights, and strategic guidance tailored to your goals. They can provide practical tips on how to wholesale real estate in California, helping you navigate the market's unique challenges.

Most importantly, a great mentor can give you the confidence to start your first wholesale deal in California, offering support and encouragement that no book or TV show can provide.

Working with a mentor is a proven strategy for success. Even greats like Warren Buffett attribute much of their achievements to having a mentor.

By gaining personalized guidance and expert insights, you can navigate the complexities of wholesaling real estate with confidence and avoid costly mistakes.

Read Also: Wholesale Real Estate Mentor: The ULTIMATE Beginner's Guide

Learn California Real Estate Wholesaling Laws And Contracts

Before you begin working in a profession involving legal contracts, you need to be familiar with federal, state, and local laws. This knowledge will help keep you out of legal trouble. For example, new landlords must know the federal and state anti-discrimination housing laws or face heavy fines and lawsuits for violating them.

Wholesaling is legal in California as long as real estate investors abide by the state's real estate laws, contract laws, and the rules governing licensed agents. In the context of how to wholesale real estate in California, it's important to understand that unlicensed wholesalers are not acting as real estate agents.

Instead, they function as intermediaries by acquiring the rights to purchase a property and then assigning these rights to an end buyer for a fee.

This practice is legal due to the doctrine of equitable conversion and the use of assignment contracts. The doctrine of equitable conversion allows the wholesaler to hold an equitable interest in the property through a purchase contract.

By assigning this contract to another buyer, the wholesaler transfers their interest in the property without acting as a real estate agent.

For example, when you wholesale homes, you find a property, put it under contract, and assign a contract to a buyer who completes the purchase. The wholesaler earns an assignment fee for facilitating the transaction.

As long as wholesalers adhere to relevant laws and regulations, this strategy remains a legal and effective way to invest in the California real estate market. Understanding these legalities is crucial for anyone interested in learning how to wholesale real estate in California.

State regulations and supervision by government bodies concerning licensing impose restrictions on how you can function as a wholesaler within California.

However, if you can navigate these constraints, the state offers numerous real estate investment prospects.

For more in-depth information, check out this Real Estate Law from the California Department of Real Estate.

However, keep in mind that this law doesn’t include every regulation related to real estate. If you’re looking for the full scope of California’s laws, you’ll need to explore all 29 Codes, which can be found on the official California legislative website.

Read Also: California Real Estate Contract: Requirements, Template & FAQs

Understand The California Real Estate Market

Successful wholesalers don’t guess where to find profitable deals. They know exactly which neighborhoods, property types, and price points move quickly.

In California’s diverse and competitive real estate market, market research is your first real advantage.

Fortunately, the California Association of Realtors (CAR) publishes regular real estate market data reports every week. Their monthly Latest Market Data shows what the market is doing, what their Realtors are saying, and what they think will happen regarding sales, prices, and listings.

Local Multiple Listing Services (MLS) list all active homes for sale listings and recent closed sales prices, along with photos and detailed information about each property.

The best way to access up-to-date local MLS data is to work with or become a real estate agent in California. If that's not in the cards, you can always learn how to get MLS access in California another way.

Wholesaling With Realtors & Agents In California

The MLS system was created by real estate companies so they can list properties for sale for other agents to access to help find buyers for the listing agents.

The commission is split between the listing and the buyer’s agent. If you don’t want to work with a local real estate agent, you can access MLS data through private websites like Redfin, Zillow, or HomeFinder.

CAR also publishes a comprehensive list of Real Estate Terms. From A to W, all of the essential realty terms are explained to you.

Building A Strong Local Network

In wholesaling, your network is your net worth, especially in California. You will benefit greatly from a strong local network supporting you. Try looking into:

• Local REI Clubs: Join Real Estate Investors (REI) associations in cities like Los Angeles, San Diego, Sacramento, and Fresno. These meetings are a goldmine for finding cash buyers, contractors, and mentors.
• Meetup Groups: Search “real estate investing” or “wholesaling” on Meetup.com to attend informal networking events and workshops.
• Social Media Groups: Participate in Facebook investor groups and LinkedIn real estate communities. Share insights, post deals (within legal guidelines), and engage with active buyers and sellers.
• Title Companies & Realtors: Build relationships with investor-friendly title reps and agents. They can connect you with off-market opportunities and buyers ready to close.

Part of your network will include a reliable list of buyers who are willing to pay you for your wholesale deals. This leads us to our next step, building your cash buyers list.

Build A Cash Buyers List

Wholesaling real estate in California is a lot easier with a reliable cash buyers list.

A cash buyer is an end buyer who can purchase properties without needing to secure financing through a mortgage. These buyers have the liquid assets available to complete the transaction quickly. Cash buyers are crucial to real estate wholesalers because they expedite the closing process, ensuring that deals can be finalized swiftly and with fewer complications.

When learning how to wholesale real estate in California, identifying and building relationships with cash buyers is essential.

These buyers provide a reliable market for the wholesale properties you secure, allowing you to assign contracts confidently and profit from assignment fees.

In wholesaling real estate, having a network of cash buyers enhances your ability to close deals efficiently, making your wholesale business more successful and less reliant on financing contingencies.

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*Want to learn the proven strategies for finding cash buyers? View our video below, where Alex Martinez covers How To Find Cash Buyers For Wholesaling! [FREE]

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Simply put, wholesalers need cash buyers. Create a list of these buyers and research their business or home contact information online. You can also hire a private investigator or use a skip tracer to find them. Below are expert tips for building a buyers’ list:

Read Also: How To Find Cash Buyers For Wholesaling Real Estate

Find Motivated Sellers And Distressed Properties

The next step in wholesaling real estate in California is finding motivated sellers and distressed properties. Motivated sellers are typically individuals facing financial difficulties, foreclosure, or needing to sell quickly.

Distressed properties are often undervalued due to their condition or the owner's situation.

Working with motivated sellers and distressed properties is crucial because it allows wholesalers to secure properties at below-market prices, creating opportunities for profitable deals.

These sellers are more likely to accept lower offers, enabling wholesalers to negotiate better terms and maximize their assignment fees when transferring contracts to end buyers.

Learn How To Start Wholesaling Without Any Marketing Costs: Apply To Join The Ultimate Investor Program

Put Distressed Properties Under Contract

The next step is to put the property under contract, which gives you the sole right to buy the home.

Before you decide to make an offer, you need to calculate your estimated profits. This requires you to calculate the following estimates:

• After-Repair Value (ARV)
• Estimating Repair Costs
• MAO Formula

After-Repair Value (ARV)

After-repair value (ARV) helps property investors estimate what a property is worth after purchasing and renovating. The formula to calculate ARV is as follows:

ARV = Property’s Current Value + Value of Renovation

Knowing how much a home is worth after renovations helps you to decide the price you offer the seller. For example, a home worth $200,000 with an estimated renovation cost of $50,000 comes up with an ARV of $250,000.

Yet, there is more information you need to decide whether to make an offer to the seller and at what price.

Read Also: Free ARV Calculator: After Repair Value Estimator

Estimating Repair Costs

First, you need to pay a good contractor to inspect the home from top to bottom. The inspection report should show what needs repairing with an estimated cost.

If you are in a hurry to estimate repair and renovation costs quickly, read our useful guide explaining how to estimate rehab costs.

Before you determine your MAO, let's look at how to lock in that property.

Watch this video to learn how to confidently fill out real estate contracts and secure your deal.

MAO Formula

The Maximum Allowable Offer (MAO) Formula is an equation that determines the price you should offer for a specific real property.

The importance of running your MAO Formula before making an offer boils down to the importance of having profit in your real estate deal. Are you fine with zero or negative profit? Probably not.

Therefore, in order to ensure a profit on any wholesale deal or flip, you must run these numbers.

The MAO Formula is:

After Repair Value (ARV) – Fixed Costs – Rehab Costs – Desired Profit or Equity = MAO

Simply take the ARV minus the fixed costs to buy and hold the home minus the renovation costs minus your equity or desired profit equals the MAO.

If this confuses you, our article explains every step in detail.

Read Also: MAO Formula In Real Estate: What Is A Maximum Allowable Offer?

How To Negotiate A Wholesale Deal In California

In California wholesaling, your ability to negotiate effectively can mean the difference between a signed deal and a missed opportunity. Successful wholesalers know that sellers aren’t just selling a house, they’re selling a solution to their problem.

Your job is to present that solution in a way that builds trust, addresses concerns, and makes saying “yes” easy.

• Build Genuine Rapport: People do business with people they like and trust. Take time at the start of every interaction to connect with the seller as a person.
• Find common ground: Ask about their neighborhood, hobbies, or shared experiences.
• Listen more than you speak: Let them tell their story. This helps you uncover motivations and pain points.
• Be consistent and reliable: Show up on time, keep promises, and follow through promptly. 
• Address Seller Pain Points: Before making an offer, identify what’s truly driving the sale. If they’re behind on mortgage payments or facing foreclosure, highlight your ability to close quickly and cover costs. If it is an inherited or vacant property, emphasize relief from property taxes, maintenance, and security concerns.
• Be Time Sensitive: If they need to relocate fast, stress your ability to close in as little as 7–14 days.
• Address Repair Concerns: Offer to purchase “as-is” so they don’t have to make costly fixes.

Remember, show that you understand their problem and position your offer as the fastest, least stressful way to solve it.

When it’s time to make your pitch: 

• Lead with benefits, not numbers: Explain why your offer works for them (speed, certainty, simplicity) before stating the price.
• Use an anchored range: Start slightly lower than your target price to leave room for movement.
• Offer certainty over maximum value: Many sellers will accept a lower price for a guaranteed, fast close.
• Explain the process clearly: Walk them through the steps from contract signing to closing day so they know exactly what to expect.

Preparing The Purchase Contract

If you want to learn how to start wholesaling real estate, you need to familiarize yourself with the purchase contract. A real estate wholesale contract is a legal document that creates a binding agreement between you, the wholesaler, and the homeowner.

Unless you are an experienced real estate attorney, don’t rely on cheap online real property contracts. They are too basic and may not be legal in your state.

Check out our informative article explaining wholesale real estate contracts. We cover many of the important terms and conditions in a standard wholesale contract to buy properties and sell the contract to a buyer.

Protect Yourself Legally: Always Get Contracts Reviewed

California’s real-estate laws are strict, and contract errors can be costly. Have a real-estate attorney review your purchase agreement before you use it, especially if you’re assigning contracts.

Ensure your agreements include clear assignment clauses and any required disclosures under California Business & Professions Code.

Revisit your contracts annually to stay compliant with any law changes.

*Pro Tip: Even if you use a standard wholesale contract template, local legal review can protect you from disputes, fines, or deals falling apart at closing.

Read Also: Flipping Real Estate Contracts: A 6-Step Guide For Investors

Assign Contracts To Cash Buyers

The next step in wholesaling real estate in California is assigning the contract to a cash buyer. Once you've secured a property under contract with a motivated seller, the next move is to transfer your rights to purchase the property to a cash buyer in exchange for an assignment fee. 

After identifying a cash buyer interested in the property, you’ll execute an assignment contract. This legal document transfers your interest in the original purchase agreement to the buyer and specifies the assignment fee you’ll receive.

For example, if you have a property under contract for $150,000 and agree to an assignment fee of $10,000 with the cash buyer, the buyer will pay you the $10,000 fee. The buyer then takes over the original purchase contract and proceeds with the transaction, paying the seller the agreed-upon $150,000.

This method is advantageous because it allows you to complete the deal without needing to fund the purchase yourself.

Wholesaling real estate through assignment contracts is a quick and efficient way to profit from real estate transactions in California, leveraging the principle of equitable conversion.

Close Deal And Collect Assignment Fee

The next step in wholesaling real estate in California is closing the deal, where everything becomes official. When assigning a contract, closing the deal involves transferring your rights under the purchase agreement to the cash buyer.

You'll meet at a title company or real estate attorney's office, where the buyer pays the assignment fee, and the title company facilitates the transfer of the property from the original seller to the cash buyer. The buyer pays the seller the agreed-upon price, and you receive your assignment fee as stipulated in the contract.

If you're double closing, the process involves two separate transactions.

First, you close the deal with the seller, taking temporary ownership of the property.

Immediately after, you sell the property to the cash buyer at a higher price; this requires two sets of closing costs and can be more complex, but is sometimes necessary if the seller or buyer prefers not to see the assignment fee.

Regardless of the method, both approaches in wholesaling real estate result in you collecting the stipulated assignment fee. Understanding how to wholesale real estate in California, whether through contract assignment or double closing, ensures you can successfully navigate the final steps and secure your profits.

Double Close When Necessary

In real estate wholesaling, investors sometimes need to conduct a double close when they can't assign a contract directly to a buyer. This situation arises when a home seller insists on not having the contract assigned, often due to concerns about transparency or a preference for dealing directly with the end buyer.

Additionally, wholesalers might need to use a double close if the end buyer's funding source requires them to be on the title or if the profit margin is so large that it might cause the seller or buyer to back out if disclosed.

A double close, also known as a simultaneous closing, involves the wholesaler purchasing the property from the seller and then immediately selling it to the end buyer, typically on the same day. This process requires two separate transactions: one between the wholesaler and the seller and another between the wholesaler and the end buyer.

While effective, this method is considered a secondary option due to the additional closing costs, fees, and logistical complexities involved.

Understanding how to wholesale real estate in California includes knowing when to use a double close.

Despite its higher costs and complexity, a double close ensures the wholesaler can still profit from the deal while respecting the seller’s preferences and meeting the buyer's requirements, making it a vital strategy in wholesaling real estate. 

Wholesaling Real Estate Pros & Cons

Wholesaling houses can be a thrilling avenue to pursue, especially for those eager to dip their toes in the property market without the heavy financial burden that often accompanies traditional investing. However, like any endeavor, it presents a unique set of challenges alongside its advantages.

Let's take a look at each of the pros and cons of wholesaling below:

Pros Of Wholesaling Real Estate

• Educational Opportunity: Wholesaling is a masterclass in real estate investment exit strategies. It's low risk and demands less experience and time than other real estate transactions. You gain valuable insights without the financial burden on your shoulders.
• Minimal Financial Requirement: The beauty of wholesaling is the low financial barrier to entry. You can secure a deal with a homeowner without any initial investment. There's no need to pour funds into house repairs or renovations, which keeps your wallet comfortably intact.
• Profit Potential: Your profit in wholesaling comes from what we call an assignment fee when you pass the contract to the end buyer. This fee usually ranges from 5-10% of the property's sale price. Plus, with a double closing, you have the chance to buy and immediately resell a property, creating profit potential without a substantial holding period.
• Reduced Risk: Since wholesalers don’t hold onto properties long-term, they avoid risks associated with market fluctuations, maintenance costs, and property management issues.
• Flexibility: Wholesaling provides flexibility in terms of time and commitment, allowing investors to work on deals part-time or full-time based on their personal schedules and goals.
• Scalability: The wholesaling model is scalable. Successful wholesalers can expand their business by finding more deals, building larger networks, and eventually transitioning into other real estate strategies like rehabbing or renting.

Cons Of Wholesaling Real Estate (& Mitigation Strategies)

⚠️ Cons	💡 Mitigation Strategies
⏱️ Time Sensitivity – Deals expire fast. You must find a buyer quickly.	Have a ready cash buyers list. Market deals via email, calls, and forums. Always keep a backup buyer.
📍 Strategic Property Selection – Wrong location can kill a deal.	Target high-demand ZIP codes. Use Redfin, CAR Reports, and county data to pick proven markets.
🎯 Buyer Matchmaking – Investors have specific criteria.	Track buyer preferences in a CRM. Only present deals that match their exact needs.
🤼 Competition – Seasoned wholesalers have deeper networks.	Specialize in niches. Build stronger seller and buyer relationships to get first calls.
⚖️ Legal Complexity – Strict California marketing and licensing laws.	Have contracts reviewed by an attorney. Stay current on laws. Market contracts, not properties.
📉 Inconsistent Income – Deal flow can be unpredictable.	Save 3–6 months of expenses. Keep multiple lead sources. Work several deals at once.
🏠 Dependence on Accurate Valuations – Bad ARV or repair estimates ruin deals.	Check comps from 2–3 sources. Get repair bids before signing. Add contingencies to exit if needed.
🤝 Relationship-Driven Business – Poor reputation kills opportunities.	Be transparent. Honor commitments. Follow up with past contacts often.
💵 Upfront Costs & Earnest Money – Marketing and deposits require cash.	Keep a reserve for deposits ($500–$2,000). Spend marketing funds on proven ROI channels.

Read Also: How To Find Off-Market Properties In California: The 4 Best Sources

Is Wholesaling Real Estate Legal In California?

Yes, wholesaling real estate is legal in California. Unlicensed wholesalers aren't acting as agents; they are acquiring the rights to purchase a property and transferring these rights to an end buyer. This is legal due to the doctrine of equitable conversion, which allows wholesalers to hold an equitable interest in the property and assign it for a fee.

For more about California wholesaling laws, see our article, which answers the important question: "Is wholesaling real estate legal in California?"

California Wholesale Real Estate Tips

Wholesaling real estate in California comes with some challenges because the state requires you to have a license if you’re marketing properties or promoting your wholesaling services. If you advertise without the proper license, you could face fines as high as $20,000, plus legal expenses.

Wholesalers often have to rely on their own network of private contacts and familiar buyers to get deals done. Although this might seem like a big limitation, it's actually pretty standard for most wholesalers. Even those with a license typically start by reaching out to their professional network when looking for investors.

To stay within the legal boundaries in California, wholesalers can focus on the main types of wholesale deals we have already discussed: contract assignments and double closings.

How Much Do Real Estate Wholesalers Make In California?

How much a real estate wholesaler makes can range greatly.

A benefit California real estate wholesalers have is the potential to earn a significant income. Real estate prices in California are soaring; therefore, wholesalers can demand large wholesale fees. Wholesalers can make as much money as they want depending on how many deals they can do and the size of their fees.

According to Rocket Mortgage, a wholesale fee "usually costs 5% – 10% of the total property price."

Let's say, for example, you put the house under contract for $120,000 and use your network to find a potential investor to buy it for $150,000. The investor takes on this contract to make substantial renovations and resell the property for much more. Afterward, you can make $30,000 in profit without even purchasing the property yourself.

Student Success Stories: Diana & Chase

Meet Diana and Chase, two of our standout students from the Ultimate Investor Program. With no prior experience in real estate investing, Diana and Chase were looking for a way to create a stable income to better support their two children. Their previous industry failed to provide the financial stability they needed, prompting them to seek a "Plan B" that could weather uncertain times. Failure was not an option for them.

Determined to succeed, Diana and Chase joined our Pro Wholesaler VIP Program. With the expert mentorship and resources provided, they quickly learned the ins and outs of wholesaling real estate. Their hard work paid off. In a short span, they successfully wholesaled two deals, netting a total profit of $80,000. Partnering with someone who brought in a cash buyer, they split the profits and took home $40,000.

What's truly remarkable is that Diana and Chase achieved this by sending out just eight offers and spending $0 on marketing. Their story is a testament to the fact that anyone can succeed in real estate wholesaling, regardless of their experience or location. Even in the highly competitive and expensive Southern California market, opportunities abound for those who are willing to learn and take action.

If you're considering wholesaling real estate, remember that success stories like Diana and Chase's are not just rare exceptions—they're possible for anyone willing to commit to learning and applying the proven strategies we teach. To hear more about their journey and how they achieved such impressive results, watch the interview with them below:

Ready To Learn How To Wholesale Real Estate? SIgn Up For Our FREE Training, Today!

Do You Need A License To Wholesale In California?

Everyone here is probably asking the same question: Do you need a real estate license to wholesale in California? No, California does not require wholesalers to become licensed. That’s because wholesalers do not sell real estate. They only sell a purchase contract to a buyer who enforces the contract, so the property seller transfers the title to the new buyer.

If you are licensed to sell real properties in California (as a broker or an agent), you are required to disclose that to your sellers when you make an offer and enter into a contract. The Section 10139 penalties will apply to a broker or agent who fails to disclose.

Also, licensed agents and brokers may get sued by sellers for failing to disclose their license status, which could lead to civil penalties and large damage awards.

Real estate prices in cities such as San Francisco and Los Angeles are some of the highest in the country. Therefore, as a licensed salesperson, the commission you earn per real estate transaction is likely MUCH higher than in most other states.

Read Also: How To Become A Real Estate Agent: The Ultimate Guide

Can A Realtor Wholesale Property In California?

Yes, as long as the proper disclosure is made to the sellers. There are numerous advantages to wholesaling as a licensed real estate broker or a sales agent.

Licensed brokers and agents have access to all of the Realtor contracts available through the California Association of Realtors, including proper disclosures and forms. Since they are licensed, there is less worry about potential marketing property restrictions that unlicensed wholesalers may face. Agents can also earn real estate sales commissions when they buy and sell properties for themselves and for others.

Wholesaling, as an acquired skill set, allows Realtors to help homeowners in more ways than the typical real estate agent or broker is capable of. This is mostly because real estate licensure training does not include any practical aspects of real estate investing. Very few agents can offer to purchase real estate directly from the sellers that they aim to serve. Therefore, wholesaling agents are able to create a competitive advantage for their businesses.

Is Wholesaling In California Easy?

No, it's not easy because wholesalers need to understand the state and local contracts and real estate laws.

However, reading our informative articles here and taking courses will teach you everything you need to know about the wholesaling profession.

In addition, undergoing mentoring with an experienced wholesaler who can teach you the practical side of wholesaling beyond taking courses and reading articles. Coaches are available to teach you the finer points of the wholesaling profession.

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California Wholesaling Expenses

When it comes to wholesaling in California, the great news is that the costs can be minimal, especially if you're assigning contracts. This approach is one of the easiest and most affordable ways to get started in real estate investing since you’re not actually purchasing the property. Instead, you're acting as the middleman, connecting buyers and sellers, which keeps your expenses low.

One of the few costs you might encounter is an earnest money deposit, which shows your commitment to the deal. This can range from $500 to $2,000, depending on the property and the agreement. However, compared to the overall value of the transaction, this is a relatively small amount.

For those considering double closings, where you briefly take ownership of the property, you’ll need to come up with the full purchase price, which can be a significant financial commitment.

Additionally, some wholesalers spend money on marketing to find buyers and sellers. While this can add up quickly, we recommend using the Multiple Listing Service to find deals for free, helping you keep costs in check as you grow your business.

Wholesaling In California FAQs

Q: What is wholesaling real estate?

A: Wholesaling is when you secure a property under contract and assign that contract to another buyer for a fee—without taking ownership of the property.

Q: Is wholesaling real estate legal in California?

A: Yes. It’s legal when you sell contractual rights, not the property itself. Always comply with California’s Business & Professions Code and use an attorney-reviewed contract.

Q: Do I need a real estate license to wholesale in California?

A: No. A license isn’t required to assign contracts. Licensed agents must disclose their license and follow state rules.

Q: How much can a wholesaler make in California?

A: Assignment fees typically range from 5–10% of the property’s sale price, depending on the deal and market.

Q: Is wholesaling easy?

A: No. It requires market research, networking, negotiation skills, and legal compliance to succeed consistently.

Final Thoughts On Wholesaling In California

Whether you are wholesaling real estate in Los Angeles or San Francisco, it pays to learn the best strategies. Wholesaling real estate in California presents a unique opportunity for investors looking to enter the real estate market with minimal risk and significant profit potential.

As we've discussed, understanding how to wholesale real estate in California involves navigating the legal landscape, identifying great deals, and building a network of reliable buyers and sellers. By following the steps outlined above, you can take advantage of this quick and profitable real estate exit strategy.

What is a real estate wholesaler? Now that you know, learning how to wholesale real estate in California is just the beginning. Watch our Free Real Estate Investor Training to learn how our Ultimate Investor Program can unlock even more opportunities and strategies in the California market. Don't miss out—take the next step toward maximizing your investment potential today!

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*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.