How To Wholesale Real Estate In California: Step-By-Step (2026)

Written by

Alex Martinez — Founder & CEO, Real Estate Skills. 14+ years of investing experience wholesaling, fixing and flipping, and buying rental properties across California and beyond.

RZ

Reviewed by

Ryan Zomorodi — Co-Founder & COO, Real Estate Skills & Licensed Real Estate Agent (eXp Realty, CA). Reviewed and verified the market data, deal timeline, CAR RPA/AOAA contract requirements, and 9-step process for California before publication.

✓ Updated May 2026 ⚡ 9-Step California Process + AB 1850 Watch on YouTube

Publication history: Originally published December 15, 2020. Updated May 2026 to reflect current California market data, AB 1850 legislative status, CAR RPA/AOAA contract requirements, and updated deal timeline and income figures. Market data verified by Ryan Zomorodi, Licensed Real Estate Agent (eXp Realty, CA).

Most wholesaling guides treat California like a bigger version of every other state: same steps, same contracts, same strategy, just higher prices. That's the mistake. Learning how to wholesale real estate in California means adapting the process specifically for how deals actually work here: a purchase agreement system that isn't assignable by default, submarkets that behave so differently from each other that a strategy built for Los Angeles will fail in Fresno, and a legal landscape that's shifting in ways no generic guide is tracking. The investors who do well here aren't just following a 9-step checklist; they've built a California-specific playbook.

Here's what that means in practice. The standard California purchase agreement isn't assignable by default; you need a separate addendum that most national wholesaling courses never mention. Coastal markets like LA, San Diego, and the Bay Area have the highest assignment fee potential in the country, but some of the most competitive investor density anywhere. The Inland Empire, Sacramento, and the Central Valley are where most active California wholesalers are finding their best deal flow right now — lower competition, strong distressed inventory, and price points where the 70% rule still gives you real room to earn. And the legal landscape is shifting: Assembly Bill 1850, introduced February 2026, is the first California bill to name wholesaling directly.

This guide is built around how California wholesale deals actually work in 2026 — the 9-step process adapted for this market, the CAR RPA and AOAA contract requirements, deal math calibrated to California's actual price points, and the compliance framework that keeps every deal clean. Use the links below to jump to any section:

What Is Wholesaling Real Estate?

Wholesaling real estate is a strategy in which an investor secures the right to purchase a property and then sells that right to another buyer for a profit.

The most common method is the Assignment of Contract: the investor (wholesaler) enters into a purchase agreement with the property owner and, through the principle of equitable conversion, transfers (or assigns) the 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 to maximizing efficiency and profits in the competitive wholesale property market.

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

Why Wholesale Real Estate In California?

California's statewide median home value sits near $787,000 (Zillow, Q2 2026), and the distressed inventory backing that market is substantial. According to ATTOM's Q1 2026 Foreclosure Market Report, California recorded 7,985 foreclosure starts in the first quarter of 2026 alone — third highest in the nation — with REO (bank-owned) inventory continuing to rise as pandemic-era forbearance tailwinds fully expire. That's a consistent, replenishing pipeline of motivated sellers for wholesalers who know where to look.

High prices and rising distress are an unusual combination that works in a wholesaler's favor. Your cash buyers are paying more per deal, which means your assignment fee as a percentage of the spread stays meaningful even in competitive submarkets. The Inland Empire, Sacramento Valley, and Central Valley markets — where distress is highest relative to price — are where most active California wholesalers are finding their best deal flow right now.

Not all California markets are created equal for wholesalers. Here's how the state's major metros compare on the metrics that matter most — median price, distressed inventory potential, and competition level among active investors.

Median prices sourced from Realtor.com, Redfin, ManageCasa, and C.A.R. (2026). Assignment fee ranges are estimates based on a 5–10% spread of median price. Competition levels reflect active investor density and market saturation.

How To Wholesale Real Estate In California (9 Steps)

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

1. Learn California Real Estate Wholesaling Laws And Contracts
2. Partner With A Wholesale Mentor
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

Before diving into each step, here's a realistic look at how long a wholesale deal typically takes in California from first contact to collected fee:

1. Learn California Real Estate Wholesaling Laws And Contracts

The governing statute is BPC Section 10130. It prohibits acting as an unlicensed real estate broker — and the California Department of Real Estate has issued cease-and-desist letters to wholesalers who market the property itself rather than their contractual interest in it. That distinction is everything. You're selling your right to buy, not the house — and the language you use in every text, email, and listing has to reflect that.

Before you write your first offer in California, two things must be true. First, your purchase agreement must be assignable — and the standard California Residential Purchase Agreement (CAR RPA) is non-assignable by default, so you'll need the Assignment of Agreement Addendum (CAR Form AOAA) completed with seller approval. Second, every piece of marketing you produce must reference your contractual interest, not the property. "Assigning my contract on 123 Main St" is legal. "Selling 123 Main St" without a license is not. Most national wholesaling guides skip both of these requirements entirely — which is exactly why California-specific education matters here.

For the complete legal framework — including the full BPC Section 10130 analysis, AB 1850 implications, double closing compliance, and how to stay compliant as California's enforcement posture evolves — see our dedicated guide: Is Wholesaling Real Estate Legal In California? →

2. Partner With A California Wholesale Mentor

With the legal framework in place, the next step is to partner with an experienced real estate mentor — ideally one who has closed wholesale deals specifically in California. Like any new career, having guidance from an expert accelerates your learning curve and helps you avoid costly mistakes. In California's regulatory environment, those mistakes carry higher consequences than in most other states.

What you're looking for in a California wholesale mentor goes beyond general deal-finding experience. You want someone who has personally navigated the CAR RPA and AOAA process, who understands the DRE advertising restrictions from firsthand experience, and who knows which California submarkets are producing deal flow right now. A mentor who has only wholesaled in other states may have never encountered any of these requirements — and that gap will show up in your contracts before it shows up anywhere else.

To find the right mentor, network at California REI clubs in Los Angeles, San Diego, Sacramento, and Fresno. Attend local investor seminars and join online forums where active California wholesalers — not just educators — are in the room. Look for someone with a verifiable track record of closed deals in this state and a willingness to walk you through the compliance requirements from deal one, not just the deal-finding strategy.

Most importantly, a great California mentor compresses the learning curve on the state-specific details that no general wholesaling course covers. The practical knowledge of how California escrow works, how to handle a seller who won't sign the AOAA, and which title companies in your target market are investor-friendly — that's the kind of insight that turns a first deal from a 90-day grind into a 30-day close.

3. 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 real estate 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.

4. 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.

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:

5. 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.

6. 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:

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.

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.

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:

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.

How To Calculate Your Assignment Fee In California

The MAO formula tells you your maximum offer price. Your assignment fee is the spread between that number and what your cash buyer agrees to pay. Here's what the math looks like at California's current median price point — because a generic $200,000 example won't prepare you for a $787,000 market.

A few things to know about running these numbers in California specifically. The 70% rule is a starting point, not a ceiling. In high-demand coastal markets like LA and San Diego, experienced flippers sometimes stretch to 75% or 80% — which compresses your assignment fee spread unless you negotiate a lower entry price. In the Inland Empire, Sacramento, Fresno, and Bakersfield, the 70% rule works reliably and gives you real room to earn.

The mistake most beginners make here is getting attached to a number before they've run the math. California's price points make that expensive. A $787,000 median means a 5% error in your ARV estimate is a $39,000 swing — which can eliminate your fee entirely and put your buyer underwater. Run the comps conservatively. Then run them again.

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 the 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.

7. 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.

Can You Wholesale California Real Estate Virtually?

California's size makes virtual wholesaling not just possible but genuinely practical. A Sacramento investor running deals in the Inland Empire is operating virtually by any meaningful definition. An out-of-state investor targeting Fresno or Bakersfield distressed properties is doing the same thing. The infrastructure for remote deals in California is mature — title companies here are set up for it, e-signature is standard, and cash buyers are accustomed to evaluating deals without walking every property.

Here's the thing about virtual wholesaling in California: the deal-finding and the disposition both need to work remotely, and each requires a different toolkit. Most beginners focus on finding the deal virtually and forget that assigning it remotely requires the same level of preparation.

For the disposition side, these are the tools California virtual wholesalers rely on:

• DocuSign or Dotloop for e-signatures: Both are accepted by California title companies and escrow officers for purchase agreements, assignment contracts, and addenda. Your CAR RPA + AOAA package can be executed entirely remotely.
• Virtual property tours: Use Google Street View for a first-pass exterior read, then coordinate with a local contact — a contractor, a bird dog, or a property manager — to walk the property on video. Buyers in the Inland Empire and Sacramento markets are used to evaluating deals this way.
• Remote escrow coordination: California's escrow-based closing process is well suited to remote transactions. Your escrow officer handles the process; you don't need to be present. Establish a relationship with an investor-friendly escrow officer in your target market early.
• Segmented cash buyer outreach: Build your California buyers list by region, not statewide. A Bay Area flipper has no interest in a Bakersfield deal. Segment your list by metro from the start and your virtual disposition time drops significantly.

One thing worth flagging for anyone running California deals remotely: the CAR RPA/AOAA requirement doesn't change because you're operating virtually. You still need the seller to execute the AOAA. Get that document signed before you invest time marketing the deal to buyers — a virtual deal with a non-assignable contract is just as stuck as an in-person one.

8. 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 it 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.

9. 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.

Not sure which method is right for your deal? Use this decision matrix to choose between an assignment of contract and a double close before you sign anything.

Both strategies are legal in California. The right choice depends on your deal structure, profit margin, and seller preferences. Always have contracts reviewed by a California real estate attorney.

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)

Is Wholesaling Real Estate Legal In California?

The practical compliance requirement is straightforward: market your contractual interest only, never the property itself, and use an assignable purchase agreement (CAR RPA + AOAA). Wholesalers who follow this distinction operate fully within current California law. Those who don't — who market the property as if they own it without a license — risk a $20,000 DRE fine and cease-and-desist action.

For the complete legal framework — including BPC Section 10130 analysis, the AB 1850 bill text, double closing compliance, co-wholesaling legality, and the full DRE enforcement picture — see our dedicated guide.

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 resells 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:

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.

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.

Secure Your Deal with Bulletproof Contracts

Download our attorney-drafted Wholesale Real Estate Contracts—including the Purchase & Sale Agreement and Assignment Contract—to ensure every deal you sign in California is secure, assignable, and ready for the closing table.

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.

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

Here are the most common questions about wholesaling real estate in California.

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.

About the Author

Alex Martinez

Founder & CEO, Real Estate Skills

Alex Martinez is a full-time real estate investor, educator, and the Founder & CEO of Real Estate Skills. Over his career, he has personally acquired more than 33 residential investment properties, generated over $12 million in revenue, and co-led firms responsible for more than $15 million in total real estate sales. Since 2020, he has built Real Estate Skills into one of the leading educational platforms for new and experienced investors alike. He also serves as a mentor at the Lavin Entrepreneurship Center at San Diego State University, where he coaches undergraduate students in real-world business strategy.

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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.