“I think it’s an evolution more than anything,” explains Josh Simon, Principal at CPG, reflecting on the changes reshaping Washington DC’s office market. “More ...
Wholesaling Real Estate in California 2024 Guide


Interested in breaking into the California real estate investment world but unsure where to start? Wholesaling properties could be the perfect entry point.
A successful wholesale real estate contract in California could bring you significant returns on your investment. If you want to take advantage of this opportunity but have no idea where to start, don’t worry.
We cover everything you need to know about wholesaling real estate in California, from understanding the basics of the wholesaling process to identifying the hottest neighborhoods.
Key Summary
- California is a great place to find bank-owned properties and foreclosures for wholesaling.
- Some of the top locations in California for wholesale real estate can be found in Los Angeles, San Francisco, San Diego, Sacramento, and Fresno.
- California wholesale real estate laws require you to obtain a real estate license and ensure your wholesale contract complies with state laws and regulations.
- The wholesale real estate process in California requires adhering to contracting laws such as Civil Code Sections 1624, 1102, and 1457.
What is Wholesale Real Estate?
Wholesale real estate involves an investor, known as a wholesaler, who finds properties being sold at below-market prices. They often look for motivated sellers or those with distressed properties who want to quickly sell real estate.
The wholesaler negotiates a contract to purchase the property and then assigns that contract to a buyer at a higher price. They act as an intermediary and facilitate the transaction between the seller and the buyer. This ensures a quick and profitable sale.
In the end, they make a profit from the difference without actually buying the property themselves.
The Real Estate Market in California
The real estate market in California is renowned for its diversity and dynamism. The state boasts one of the world’s largest economies, an attractive climate, and an ever-growing population, all of which keep the demand for real estate high.
Median estimated home values in California over the last 12 months range from $242,000 in Lassen County to over $1.8 million in San Mateo County.
The state currently has over 18,000 foreclosure properties, more than 1,200 bank-owned properties, and over 3,000 properties poised for auction.
Additionally, California is among the states with the most bank-owned properties, with 845 of them during Q1 of 2024. During the same period, the state had 11,303 foreclosure filings, accounting for one foreclosure for every 1,276 properties statewide.
Top 5 Locations in California for Wholesale Real Estate
Los Angeles
As one of the largest cities in the U.S., Los Angeles offers a vast market for wholesale real estate. Its diverse neighborhoods and constant demand for housing make it a prime spot for finding and flipping wholesale properties. The top Los Angeles neighborhoods for wholesale properties include:
- South Los Angeles: This area offers affordable housing and many distressed properties that are ideal for wholesaling and flipping.
- Inglewood: Inglewood’s development boom is driven by the SoFi Stadium, which makes it prime for lucrative wholesale deals.
- Boyle Heights: This area’s affordability and cultural richness offer wholesalers ample opportunities with motivated sellers and distressed properties.
- Echo Park: Echo Park’s eclectic charm and gentrification provide wholesalers with profitable flipping opportunities.
- Leimert Park: This neighborhood’s cultural heritage and ongoing revitalization make it a promising spot for wholesale real estate.
San Francisco
Known for its tech industry and high real estate prices, San Francisco provides lucrative opportunities for wholesalers who can identify undervalued properties and negotiate favorable contracts. The top San Francisco neighborhoods for wholesaling include:
- Bayview-Hunters Point: Bayview-Hunters Point offers affordable properties and great redevelopment potential.
- Outer Sunset: Outer Sunset’s mix of single-family homes and coastal appeal make it attractive for wholesale deals due to the high demand in this area.
- Excelsior District: The Excelsior District has lower prices relatively speaking, compared to other San Francisco neighborhoods. Plus, its diverse housing stock provides excellent opportunities for investors.
- Ingleside: Ingleside’s proximity to public transit and affordable homes make it a prime area for real estate investing.
- Visitacion Valley: Visitacion Valley’s ongoing development and lower property values offer lucrative opportunities.
San Diego
With its beautiful coastal location and thriving tourism industry, San Diego is another excellent market for wholesale real estate. The city’s diverse housing market caters to a wide range of buyers and investors. It’s best neighborhoods for wholesale real estate are:
- City Heights: City Heights offers a diverse housing market with many distressed properties perfect for investors looking for bargains.
- Barrio Logan: Barrio Logan’s cultural vibrancy and ongoing gentrification provide great opportunities for wholesalers.
- San Ysidro: San Ysidro’s border proximity and affordable housing market make it an investor hotspot.
- Logan Heights: Logan Heights has a mix of historic homes and new developments with a good potential for wholesaling.
- Linda Vista: Linda Vista’s central location and varied property types attract investors looking for profitable deals.
Sacramento
As the state capital, Sacramento has seen significant growth in recent years. Its relatively affordable housing market compared to other major California cities makes it an excellent place for wholesaling real estate. It’s top neighborhoods for wholesale properties include:
- Oak Park: Oak Park’s revitalization and affordable housing market make it a hotspot for wholesaling.
- Tahoe Park: Tahoe Park’s family-friendly atmosphere and reasonably priced homes offer great opportunities.
- North Highlands: North Highlands’ suburban appeal and lower home prices are ideal for investors.
- Arden-Arcade: Arden-Arcade’s diverse properties and proximity to downtown Sacramento make it an ideal place for wholesalers.
- South Land Park: South Land Park’s mix of mid-century homes and new developments provide lucrative options.
Fresno
Fresno’s growing economy and affordable real estate market offer ample opportunities for wholesalers. The city’s steady population growth ensures a consistent demand for housing. It’s best neighborhoods for wholesale properties are:
- Tower District: The Tower District’s historic charm and affordable homes offer great potential.
- Central Fresno: Central Fresno’s diverse housing market and lower prices make it ideal for deal finding.
- Fresno High Roeding: Fresno High Roeding’s mix of historic properties and redevelopment opportunities makes it a hotspot.
- Hoover: Hoover’s suburban feel and affordable homes are perfect for real estate wholesaling.
- McLane: McLane offers a variety of property types and prices, making it a good area for investors.
Is Wholesaling Real Estate Legal in California?
Wholesaling real estate is legal in California. However, there are specific regulations and laws that wholesalers must adhere to:
- You must have a real estate license: California law requires you to have a real estate license to engage in activities related to the sale or purchase of real estate for compensation. This includes wholesaling activities where you are brokering a deal between a seller and a buyer.
- You must assign a contract: When assigning a contract under California Civil Code Section 1457, you must ensure full disclosure to all parties involved. The contract must explicitly state that it’s assignable, and the original seller should be aware of the assignment.
- You must meet California’s disclosure requirements: Under California Civil Code Section 1102, you must ensure that all required disclosures are made, particularly when assigning contracts. This includes disclosing the wholesaler’s intent to assign the contract to another buyer.
How to Wholesale Real Estate in California
Research and Education
Begin by educating yourself about the California real estate market and wholesaling strategies. Start by studying market trends, property values, and neighborhood dynamics specific to California.
You can also utilize online resources, such as real estate websites, market reports, and local news, to stay updated on current trends. Some resources you can use include:
- California Department of Real Estate (DRE)
- California Association of Realtors (CAR)
- Zillow
- Redfin
- CoreLogic
- PropertyRadar
Find Potential Properties
Look for distressed properties or motivated sellers. This can be done through various methods, including online listings, direct mail campaigns, and networking with real estate professionals. Here are some resources to help you find California wholesale properties:
- California Regional Multiple Listing Service (CRMLS)
- San Francisco Association of Realtors MLS (SFARMLS)
- Bay Area Real Estate Information Services (BAREIS MLS)
- San Diego Multiple Listing Service (SDMLS)
- MLSListings Inc. (Serving Northern California)
- MetroList MLS (Serving the Greater Sacramento Area)
- Fresno Multiple Listing Service (Fresno MLS)
Secure a Contract
Once a potential property is identified, negotiate and secure a wholesale real estate contract. This contract should clearly state the purchase price and the assignment fee. Also, ensure that your contract complies with California laws such as:
- California Civil Code Section 1624 – Statute of Frauds: Wholesale real estate contracts must be in writing to be legally enforceable, including terms such as the purchase price and assignment fee.
- California Civil Code Section 1102 – Seller Disclosure Requirements: You must ensure all necessary property condition disclosures are made to the buyer.
- California Civil Code Section 1457 – Assignment of Contracts: This law ensures that the contract explicitly allows assignment and that all involved parties are properly informed.
Find a Buyer
Market the property to potential buyers, typically real estate investors or flippers. Present the property’s potential and the terms of the contract to interested parties.
Assign a California Real Estate Wholesale Contract
A real estate wholesale contract in California is one of the key requirements in the process. Once you find a buyer, assign the contract to them for a fee. The buyer will then complete the purchase, and you will earn your assignment fee.
Close the Deal
The final step is closing the deal, where the buyer takes over the contract and completes the purchase. Ensure all paperwork is in order and that the transaction complies with California real estate regulations, such as:
- California Civil Code Section 1091 – Transfer of Real Property
- California Business and Professions Code Section 10145 – Handling of Funds
- California Civil Code Section 2941 – Reconveyance of Deeds
Pros and Cons Real Estate Wholesaling in California
Before diving into wholesale real estate in California, make sure this investment opportunity aligns with your goals and interests.
Here are some of the pros:
- California’s robust real estate market with high demand allows for quick turnaround times on wholesale deals.
- The vast and active real estate market provides extensive networking opportunities with buyers, sellers, and other professionals.
- The high property values in California can lead to significant profit margins on successful wholesale deals.
- Investors can manage and close multiple deals simultaneously.
Some of the cons include:
- California has stringent regulations and licensing requirements for real estate wholesalers.
- The competitive nature of California’s real estate market makes finding profitable wholesale deals challenging.
- The high property values and associated costs can make entry into the market expensive despite the minimal upfront capital required for wholesaling.
- California’s real estate market is sensitive to economic fluctuations, which can impact deal availability and profitability.
- The complex real estate transactions in California can make the wholesaling process more challenging and demanding.
Bottom Line
We hope this guide has equipped you with the know-how to get started in wholesale real estate in California. While it requires strategic planning, adherence to regulations, and a willingness to put in the work, the potential rewards make it well worth the effort.
With commitment and the right strategies, you can capitalize on this vibrant market and secure your own slice of the California dream.
Similar Articles
Explore similar articles from Our Team of Experts.


Are you looking for a real estate investment that gives you a bang for your buck? Look no further than wholesale properties in Atlanta, Georgia. With its diverse neighborhoods, histori...


Are you a first-time real estate investor looking to get a bang for your buck? Wholesaling real estate in Illinois is a great way to hit the jackpot while barely pulling the lever. If ...


Tampa is often hailed as the sunshine-soaked jewel of Florida’s Gulf Coast. It’s known for its vibrant blend of cultures, thrilling theme parks, and sizzling nightlife. However, if y...


If you’re looking for a smart real estate investment, an Airbnb or vacation rental property may be a lucrative choice. In 2023 alone, more than 448 million Airbnb nights & experiences ...