The sale of the contract must occur before the agreed upon closing date. With a contract assignment, the wholesaler never actually purchases the property.Learn what wholesaling is and how to wholesale real estate in California! Let the experts at Real Estate Skills get you started with our step-by-step guide. Learn how to wholesale real estate in Los Angeles: 1. A wholesale agreement is a contract that transfers the ownership of goods from an original seller to the buyer through an intermediary, called the wholesaler. Wholesaling real estate is when you find a troubled home and set up a contract with the owner to resell it. The Seller's Permit will enable you to collect and pay sales tax for the items that you sell, and is required from both wholesalers and retailers. Used when purchasing "distressed properties" as a wholesale investment strategy. This contract allows the buyer to assign the contract to a second buyer.