Do I need earnest money to get a contract for expensive homes in California?

[Joshua Carvalho]

I'm a new wholesaler in Pasadena, CA. Houses here have a median retail value of $600k-$700k. When I hear podcasts, read books, articles, etc. I learn that as a wholesaler I don't need any money to put down in order to get a house under contract. If I do at all, then it could be between $50-$1000 depending on the seller. However, a mentor of mine here locally told me that I need to put down 3% to get a house under contract for a wholesale deal. Here that could be $15k or more depending on the house!!! Yikes! I don't have that kind of cash to put down on several houses each month. So what's the truth? Could anyone tell me? For the Los Angeles market that is?

[Lumi Ispas]

@Joshua Carvalho , the EM is most of time necessary. @Judah Hoover & @Matt R. are both correct. 

Keep in mind that if you intend to wholesale properties listed in the MLS, most investors won't take you seriously. Those properties are available for everyone to see.

You'll find gold in the properties that are for sale and are not marketed in the MLS. You have to find that gold nugget by either mailings, knocking in doors, find absentee owners, etc.

Good luck!