What is the law on Wholesaling in CA?

Question

Hello all,

I just moved to the Bay Area. Being that I do not have a lot of capital, I am trying to start my RE business through wholesaling. Are there any laws in CA on the topic? Will I need to obtain a RE license?

Also, if anyone wants to give a hand or provide any advice on getting started, I would greatly appreciate it.

Thank you,

Account Closed · Answer

https://www.biggerpockets.com/forums/50/topics/746...

See above. Apparently there are currently no laws in CA prohibiting making ur offer/contract to purchase contingent upon assignment-- assuming that is indeed declared in writing!

Canesha Edwards · Answer

Thank you Neil G.

Ron P. · Answer

@Kelly O'Quinn

Any luck with the CAR hotline?

Joseph Caracappa · Answer

p.s. when I said "double close" I mean use a transactional funder, close and sell to your buyer..

Joseph Caracappa · Answer

@Canesha Edwards, this topic is greatly debated here on biggerpockets.. I am not a lawyer, but as far as I know if you have a purchase agreement with an assignment clause and you assign your interest to your buyer it is legal for now.. You can also double close.. My recommendation is to always be honest and up front with your seller and buyer, tell them exactly what you are attempting to do and if they still want to move forward, I see nothing wrong with it. As far as building a buyers list, well that is another debatable topic. But I can say this, I see no need in going out locating a ton of buyers and then finding out you cannot perform for them. Learn the numbers, learn your market, figure out what type of sellers you are going to target, how you are going to market to them, etc. Know a great deal when you see one, so when it comes along you can execute with no hesitation. While doing all this, network to find one or two good buyers in your area and tell them you are new but hungry! You can get some business cards and drive your area, look for houses with dumpsters, portable restrooms, under large amounts of construction, etc. Get out and introduce yourself and figure out if they buy and sell real estate on a regular basis. There is a ton of ways to locate buyers here on BP. But learn the game before you go tell a bunch of investors you can find them deals.. This is just my opinion.. best of luck in your pursuit.

Sincerely,

Joseph Caracappa

Greg Ngai · Answer

Hi Canesha,

I'm finding more and more relevant content as I'm searching on the forums.  I'm going to continue to dig deeper.  PM me and we can stay in touch.  Thanks!  -Greg

Canesha Edwards · Answer

Thank you both for your responses. Greg, I am just as new to real estate investing as you are. I have reached out several times looking for a mentor as well. From what I have gathered from reading, the first thing to do is network and build a buyers list. I have not receive much response as far as anyone lending a helping hand or showing me the ropes. I would be open to meeting for lunch or something to possible brainstorm and see how we can help each other.

-Canesha

Greg Ngai · Answer

Hi BP Community,

Canesha Edwards and Kelly O'Quinn, thanks for asking the questions.  I'm a newbie interested in wholesaling and wondering some of the same.  I'm not a realtor, so I don't fall into that boat.  But, I am wondering if anyone can shed light on an appropriate way to start wholesaling, steps to take, etc.  Though reading is great, I'm wanting more focus and structure than "read everything you can get your hands on".  Mentorship would be great, but how do you go about finding one?  Thoughts anyone?  I'll keep looking on the forums...maybe there are threads already addressing this.

-Greg

What is the law on Wholesaling in CA?

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