California has one of the hottest real estate markets in the country and has for decades. However, there are many misconceptions about the current state of the market and the opportunities available to invest in and wholesale homes. So what is the real problem?

It certainly has been a roller coaster for California real estate for the past decade. It has gone from the top to one of the hardest hit foreclosure markets and now many areas are picking up quickly and leading the new rally. This is where many find the CA market confusing. Some media outlets have hyped the new housing boom so much that, on the surface, it may sound overly bloated with little room for new investors or profit.

Of course, savvy wholesale CEOs and those with access to the raw or actual data behind the headlines know that there are still plenty of great investment opportunities out there, with years of great growth ahead.

It is true that the market is hot and in high demand by global buyers and international investors. Multiple offer situations are commonplace with nine out of ten REO listings receiving multiple offers and 50% of properties selling for an average of 5% off the sale price. Of course, these statistics must also be tempered with an understanding of how agents and sellers strategically create these scenarios as well.

The big race has also resulted in California being home to 4 of the top 5 US markets for luxury home remodeling, with some outrageous rehabs taking place, to spec. Yet there are still billions of dollars in bank-owned REOs and bad loans in the state.

According to leaked financial data from California banks reporting for the third quarter of 2013, they still have more than $5.3 billion in bad mortgage loans and billions more in delinquent commercial mortgage loans. This adds up to a large number of loan modification defaults. In fact, those wholesale properties should be excited to learn that California is one of the few states that saw the percentage of residential REOs grow between the second and third quarters of this year. The California Association of Realtors reports that the flow of REOs being launched amounts to about a 3-4 month supply, with many more to follow.

The bottom line is that it’s a great time to wholesale real estate in California and there are plenty of online and mobile marketing options to level the playing field and stay ahead of the competition for investors.