Wholesaling Real Estate In California

Wholesaling Real Estate In California

Walnut Creek, CA · Member since 2016 · 4 posts · 1 vote

Hello all, although it is only my 3 post or so, i research a lot and was reading the 2016 real estate law for CA. 

This is the link to the CA bureau of real estate. hopefully this ok by the mods.

http://www.dre.ca.gov/Publications/RealEstateLaw.h...

I will post Chapter 3. Real Estate Regulations article 1 section 10131.

Broker Defined (What does this mean if there are any lawyers out there)

(e) Sells or offers to sell, buys or offers to buy,

or exchanges or offers to exchange a real

property sales contract, or a promissory note

secured directly or collaterally by a lien on real

property or on a business opportunity, and

performs services for the holders thereof.

what does this mean for wholesaling. Can a lawyer explain broker defined, and whether or not this applies to wholesalers??

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  • Barstow, CA · Member since 2016 · 4 posts · 0 votes
    9y
    I understand your concern , I'm a REALTOR in California, and I'm looking to start a Real Estate investment business. I have access to a lot of potential short sale deals, and properties in general, I'd like to try to buy some of these properties , But don't have the funding I need to Close the deals. The issue here in. California Is the funds to close will need to come from transactional funding, which I'm having an issue finding. Does anyone know of any legitimate transactional lenders. I'm willing to provide any of my services in exchange for some help/ mentoring in getting one of these deals completed.
  • Investor · San Diego, CA · Member since 2015 · 290 posts · 80 votes
    9y

    @Sean James My best understanding is that if you do more than 7 deals a year (buy/sell property and/or notes) which are secured by a deed of trust, you will need a license and therefore need a sponsoring broker. So deals 0-6 are fine to wholesale. I would still have a credible RE attorney on your team to make sure all legal issues are addressed.

    @Larry Echavarria If funding is the challenge, I would seek a hard money lender (HML) or partner up with another investor. If it's a good deal and you run numbers correctly, HML's and investors would be interested.

  • Northern, CA · Member since 2014 · 674 posts · 444 votes
    9y

    best to get your license so there are no issues, that is what I did. So far I have closed on 2 deals and rehabbed them both (one rented, not sure if flipping or renting 2nd one yet) and will wholetale/wholesale/BRRRR deals I find based on how much cash I have available. My Broker is fine with everything and we are actually working together on my non investor leads, he is going to list them and split profits with me. We have had a couple conversations with CAR legal to confirm legalities.

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