Do I need earnest money to get a contract for expensive homes in California?

[Joshua Carvalho]

I'm a new wholesaler in Pasadena, CA. Houses here have a median retail value of $600k-$700k. When I hear podcasts, read books, articles, etc. I learn that as a wholesaler I don't need any money to put down in order to get a house under contract. If I do at all, then it could be between $50-$1000 depending on the seller. However, a mentor of mine here locally told me that I need to put down 3% to get a house under contract for a wholesale deal. Here that could be $15k or more depending on the house!!! Yikes! I don't have that kind of cash to put down on several houses each month. So what's the truth? Could anyone tell me? For the Los Angeles market that is?