Do I need a license to wholesale in California?
I've asked dozens of sources including the dre, and multiple attorneys, and investors. But I keep getting different answers. So if anyone know for sure if a real estate license is required to legally wholesale in California.
It depends on what you mean by "legally wholesale".
Can you negotiate with a seller in good faith, get a property under contract, and then assign that contract to another buyer? Yes.
According to California Code, Business and Professions Code - BPC § 10131, California requires a license for the following:
"a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do one or more of the following acts for another or others:
(a) Sells or offers to sell, buys or offers to buy, solicits prospective sellers or buyers of, solicits or obtains listings of, or negotiates the purchase, sale, or exchange of real property or a business opportunity.
(b) Leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase, or exchanges of leases on real property, or on a business opportunity, or collects rents from real property, or improvements thereon, or from business opportunities.
(c) Assists or offers to assist in filing an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal government.
(d) Solicits borrowers or lenders for or negotiates loans or collects payments or performs services for borrowers or lenders or note owners in connection with loans secured directly or collaterally by liens on real property or on a business opportunity.
(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."
Quote from @Bryant Brislin:
No, you don't. Not yet.
Thank you for your response. Are you currently wholesaling in California without a license?
It's more than likely coming......the last 4 years or so wholesaling has been flooded with unprofessional people who come from tik toks and youtube looking for "quick cash", easy money, etc. However, they don't realize it's a business with ethics and serious implications of dealing with properties and large amounts of money. And with them being unethical and unprofessional is only speeding up regulations and license required.
@Michael Serna I'm mostly doing Texas, but I have done some CA, and I just disclose on the contract something to the effect of "Buyer is a licensed real estate agent (DRE No. xxxxxx), but is acting as a principal for profit on this transaction."
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Real Estate Agent
- Cash Source Homes
