Learning how to wholesale real estate in California can make you sizable amounts of money. Wholesaling – as a real estate strategy – has become adopted by many newbies, realtors, and investors. Having the ability to assign a contract is another tool in the toolbelt of real estate investors when deciding what to do with a property in CA. The Golden State also offers extremely high-valued homes, making the real estate wholesaling strategy a worthwhile pursuit. If you’re curious about how to get started wholesaling, look no further.
Here is the ultimate, step-by-step guide on how to wholesale real estate in California and generate massive profits in 2025.
What is Wholesaling Real Estate?
Wholesaling real estate is a widely adopted investing strategy that people use to quickly buy and sell a property. There is a (very) low barrier to entry into wholesaling because you usually don’t need to put any money down yourself. Newbies galore have jumped into the California real estate game, wholesaling deals left and right!
There are two different ways to wholesale real estate in California.
1. Wholesale Assignment
The most common way to wholesale houses in CA is via a real estate assignment contract. A wholesaler will get the property under contract. Before the official closing date of that contract, they will execute a clause within the assignment agreement to “assign” the property to a different buyer.
Typically, the 2nd contract with the new buyer will be for a higher price than the initial contract you have with the seller. What do you find in the middle? Your wholesale commission – aka the spread. If you are just getting started, you can download our free wholesale real estate assignment contract PDF here. Having professional contracts is important when sealing the deal with motivated sellers.
Assigning a contract is the cleanest way to wholesale in California. There’s the least amount of friction involved since the seller and new buyer are the ones actually buying and selling to each other. You are simply selling the contract between them and making a small fee.
2. Double Close
Wholesaling real estate in California can be done successfully through a ‘double close’. This strategy is exactly what it sounds like – there are two closings involved.
You close out the contract with the original seller, meaning that you actually buy the house. Then, you become the new owner of the property and sell it to the new buyer. There are two technical closings involved and your name (or entity you use) will show on the property records.
Timing is everything when using the double close to wholesale real estate in CA. Ideally, you can line up the closings close enough to each other that you don’t have to put your own money down for the transaction. Talk with the title company you plan to use for the transaction so you know what you need to do. Oftentimes, double closes involve you putting down money to actually buy the house and then resell it.
PRO TIP: Find a title company that is wholesaler-friendly. They can walk you through how they work and give you tips on wholesaling real estate in California.
Now that we’ve reviewed the two ways to wholesale real estate in California, let’s disprove a few myths…
You Don’t Need a License to Wholesale Real Estate in California
Myth #1: You need a license to wholesale real estate in the state of California.
Phew! That would prevent most people from jumping into the wholesaling game. Fortunately, you can wholesale real estate in CA without any kind of license. Of course, there may be certain city-wide (or county-wide) laws that exist around wholesaling houses.
Realtors – on the other hand – need a license if they are to market and sell a property on the MLS in California. However, if you’re only assigning a contract or double closing, no license is needed. Review the CA real estate laws so that you’re aware of any requirements in your city.
Wholesaling Real Estate is Legal in California
Myth #2: Trying to wholesale real estate in California is illegal.
Double phew! You can legally wholesale real estate in CA. However, that doesn’t mean you can’t break laws along the way. What’s the best way to wholesale houses without breaking any rules?
Speak with a real estate attorney before you plan to wholesale. They can let you know the exact rules regarding wholesaling.
Next, make sure that you put everything in writing. If you have your California real estate agent license, disclose that! It IS illegal to wholesale properties in CA without disclosing that you’re a realtor. Also, make sure you have the proper clauses that allow you to assign a house that you get under contract. Putting things in writing protects all parties involved in a wholesale real estate transaction.
Whether you are trying to wholesale real estate in San Diego, Los Angeles, San Jose, San Francisco, The Bay Area, Bakersfield, Fresno, or Santa Cruz, know that it is possible. These wholesaling tips will help you become a rockstar real estate flipper in no time.
Wholesale Real Estate in California: 7-Step Process
Learning how to wholesale real estate in California doesn’t have to be complicated. Keeping your real estate business simple will help you close more deals and make more money. Don’t get lost in the sauce! Here’s an effective 7-step process that you can follow in 2025 to successfully wholesale real estate in CA.
1. Build a Buyers List
The first step to wholesale real estate in California is building a buyers list. You can wholesale property without an end buyer. Some wholesalers build their parachutes after jumping off the cliff. Which is fine, if they can find a buyer in time to wholesale the house they have under contract.
A solid cash buyers list enables you to wholesale multiple houses at once. The more buyers you have, the more deals you can supply them. Ideally, your cash buyers purchase homes of any kind in your area. Only add high-quality buyers to your list.
You can build a buyers list through a variety of different methods, including:
- Cash Buyer Facebook Groups – join different local cash buyer and wholesaler Facebook groups in your city. Make a post about your buyers list and ask people to comment with their email addresses. You can also direct message people on Facebook that are active within those groups asking them to join your buyers list.
- BiggerPockets – get active on BiggerPockets forums in your city. Answer questions and connect with people. Once you build a relationship, you can direct message buyers and ask if they want to join your list.
- Cash Purchases on MLS – you can pull a list of cash purchases in your area using the MLS. If you are not a realtor and don’t have MLS access, there are other tools that can sometimes provide similar data.
- Agents Representing Cash Buyers – real estate agents are a great resource to connect with cash buyers in your area. Pull lists of agents that helped represented other cash buyers in your area and add them to your list.
2. Choose a Marketing Strategy
Deciding how to market to motivated sellers as a wholesaler isn’t easy. There are dozens of different real estate marketing strategies that work. To keep it broad, there are 2 major categories of marketing in real estate:
- Inbound Marketing – putting things out there and having sellers reach out to you.
- Outbound Marketing – directly reaching out to sellers.
Both real estate marketing strategies work… and they both have their pros and cons. Inbound marketing can work very well if you have data-driven, niche lists that you can market directly to. If you are trying to wholesale real estate in California off a list that dozens of other people have, you won’t be successful. The riches are in the niches!
Inbound marketing is nice (sometimes). Wholesaling strategies that incorporate SEO are great because the leads are hot and motivated. Facebook leads, on the other hand, can come in droves and be low quality. Do you want to spend your day working 50 leads to close 1 deal, or 10 leads to close 1 deal? You decide how to market to your wholesaling list.
3. Create a System
After you selected your marketing strategies, create a system that can handle and manage the leads. A CRM (customer relationship management tool) is an essential tool for successful real estate wholesalers. If you can’t track your leads, how can you follow up? CRMs help manage leads so you know who to follow up with and when.
Leverage technology in every way possible when systematizing your real estate wholesaling business. You can set up automatic text messages to hit your inbox once new leads come in. Getting back to motivated leads is crucial if you’re trying to wholesale real estate in California. Systematized processes are even more important for virtual wholesaling in CA.
4. Market to Motivated Sellers
Step 4 of learning how to wholesale real estate in California is to deploy your marketing. Execution and follow-up are key. Create a marketing plan, execute it, and start letting homeowners know you’re ready to help them sell!
It’s also helpful to know which types of motivated sellers you want to target. Some wholesales focus on vacant land instead of residential houses. It’s all preference! The riches are in the niches.
5. Work Motivated Seller Leads
The more motivated the seller, the easier that lead will be to work. Follow-up is everything when it comes to working with motivated seller leads in real estate. Some homeowners that need to sell quickly will expect to close within 14 days. Others won’t be ready to sell for another few years. Notate important details about a seller in your CRM and schedule your next follow-up touchpoint.
As you work the leads, you can close them over the phone or at an appointment. Certain wholesalers prefer one closing method over the other. Over the phone is more scalable. However, belly-to-belly in-person meetings allow you to let your personality shine through to win over a seller.
Either way, make sure you prepare for the interaction beforehand. You’ll be successful in trying to wholesale houses in California by preparing the right way. The next goal from here is to get the property under contract.
6. Assign Contract to Cash Buyers
Remember Step 1 when you built your buyers list? Now it’s time to test that puppy out!
Once you get the home under contract, you can assign it to a cash buyer. This is known as disposition, or ‘dispo’. There are plenty of tools you can use to blast out deals to your buyers list. Some wholesalers prefer text and others email. Mailchimp and Constant Contact are great tools for bulk emailing your cash buyers list a deal you are trying to wholesale.
7. Close Deals and Repeat
Once you have a buyer lined up, sign an agreement with him/her and make it official. Collect an earnest money deposit from them and set a closing date. You have officially assigned the contract and can close the deal. What should you do next? Do it all over again!
Virtual Wholesaling in California
The same steps to wholesale real estate in California when doing it virtually. If you prefer to meet sellers in person to sign the agreement, partner with someone in the markets you are wholesaling in, and have them go in person. People do virtual wholesaling in multiple cities once they get the proper systems down. California is a big state with plenty of virtual wholesaling opportunities. When you have a good list and solid data, you can wholesale almost anywhere.
Realtors Can Wholesale Property in California
Wait… did we forget about Myth #3?
Realtors can indeed wholesale houses in California. However, as noted previously, they must disclose this information to the sellers they work with. Additionally, California realtors must disclose they are a realtor in their marketing pieces. Disclosures are key to staying out of real estate trouble! You can structure a real estate wholesale deal in California when you have your license. Just don’t forget to mention it to the sellers you work with!
Best Cities to Wholesale Real Estate in California
It’s widely known that the California real estate market is extremely competitive. However, that doesn’t mean you can’t take your slice of the pie with enough creativity. Some of the best cities to wholesale real estate in California are ones you could probably guess:
- San Diego
- Los Angeles
- San Jose
- Escondido
Other smaller California cities also provide great opportunities for wholesaling properties, like Chula Vista and El Cajon. These are small cities nearby San Diego, so they hold their values well but are less competitive than directly in SD.