Rental Property Investor · Oakley, CA · Member since 2011 · 34 posts · 4 votes
Hello everyone, I wanted to get some insight on legalities in regards to Wholesaling in California. I hear so much about different approaches and methods that can be used when putting contracts together. However, every state is different and I want to make sure I am doing this the right way. I guess I could seek this from my local real estate attorney? But I'd rather get the insight from my fellow BiggerPocket members. Any help with this request is greatly appreciated.
Kevin Breazeale- you might check in with K. Marie Poe on this. She provided me with a contract that helped me successfully wholesale a property very quickly. I had to adapt it to my situation of course, but it was a very useful template.
Please no one in CA write to me and ask for contracts or templates. I think it's a bad idea in general to share legal docs. I rarely (as in one time in 12 years) have actually given my documents to anyone. Jake Kucheck appears to have forgotten that I told him that's his was a special situation and that I asked him not to share that.
Kevin: I'm not aware of any laws about wholesaling in CA. I think it's more about adhering to contract law and being careful to not violate agency laws. An attorney can help you with putting together a good assignment agreement. Any purchase agreement can be assigned, but it's a good idea to customize your purchase agreement. I also suggest having them help you craft an a straight option agreement as well.
I close on most of my purchases before re-selling. So I have no problem when the seller is using the standard realtor board contract or their own contract. Make sure you find an RE attorney who has actually helped investors with assignments. Your best best is to get a recommendation from other local investors. There are thousands of attorneys who are happy to take your money and provide you with contracts docs but will have no idea what you are trying to do.
Yikes... sorry about that. I meant that the OP might be able to glean some insight from picking your brain, not that I was suggesting he get the docs from you and turn around and start using them. I guess even that over-steps the bounds of what you wanted. My apologies for the mix-up.
K. Marie Poe Jake Kucheck I think the important thing to note is that Jake is a licensed California real estate agent, therefore; he's considered an "expert" by law, expected to know the laws of the State, and not asking for your counsel, only forms, therefore no liability, which would not be the case for others.
Karen: thanks for your thoughts. Like I said, it's a bad idea to share legal docs, period. I get a lot of off the board email and it's often from people looking for help/suggestions so that they don't have to pay an attorney. My docs are all custom and made to serve my purposes and I use them at my own risk. Maybe I'm paranoid. I think I even sent Jake a disclaimer that the docs weren't legal advice and to use at his own risk. I understood Jake's situation sufficiently that I knew he could handle that and that he would know how to adapt it for his purposes. I just didn't want it to get around that I was the go-to person for free CA templates. :)
Thanks everyone for your response! This gives me a better idea on what I need to do as a wholesale investor. I hope this did not cause any hard feeling? Thanks again and happy investing!