I don't want to be unethical and dishonest.

14 Replies

Hello and greetings to the great world of biggerpockets. I am a newbie in the Tampa Bay Area. I have been a lurker here on the forums for the past 6-7 months and I must say this site is one the best things I have ever encountered on the internet with vast knowledge and great people.

I have recently decided to pull the trigger and "just do it". I am currently in the process of starting my yellow letter campaign that I will hand write for a while until things pick up for me. In regards to wholesaling, I feel that it is unethical and sort of dishonest to pose as a "cash buyer" when my intentions are to flip the contract. This just may be me but it is how I feel about it. I refuse to do any kind of business in an unethical or a dishonest manner. Is there a way a better way to keep the process honest and smooth with the seller? Right now my plan is to take the "I am willing to make you a fair offer" or "Cash for Homes" instead of "I buy houses" approach. Help would truly be appreciated.


I think it really just comes down to a matter of how you explain yourself. Most people aren't going to ask if you are a cash buyer if they are off market deals you have found through marketing. I recommend also getting approved with a local HML and a portfolio lender if you can find one. I like knowing I can close like I promised regardless of if I can "find a buyer".

@Ryan D.

I appreciate the input. What would HML or Portfolio Lenders typically require in a case like this being that I am totally new to this?

@Andre Clemons I totally agree with your stance, I felt the same way when I was sending mailers.  I would put "that I may be able to help with their home."  Also I would let them know when I was speaking with them that there are multiple avenues for the them, cash deal, terms, etc.  And the benefits and downfalls of each.

HML lender some will work with Newbies others won't. Most will fund a deal and walk you through it as long as it makes sense.

Portfolio lender is the cheaper way to go about it. However they are going to want a financial statement and often pull credit. You will have to have funds to back up any deals you bring. They like to see 6 months of reserves for instance if you are trying to buy a rental.

@Robert Curls

Thanks for the input. Could you elaborate a little more on when you say "terms , etc" . Do you mean something along the lines of subject to or owner financing?

@Andre Clemons Exactly, seller financing, Sub2, maybe seller carry back. I'd always go through their options with them of how they could sell their home including traditional retail sale in which case I would refer them to a Realtor friend of mine. I think people appreciated the advice.

Hi @Andre Clemons

Welcome to bigger pockets! You got the right place for you learn and get tips about real estate investing! All the Best!

@Andre Clemons

 Welcome to BP! I totally get you. I remember I called and asked a mentor exactly how am I helping people? I understand it's not illegal, but I need to know exactly how I'm helping real estate agents, other investors & homeowners in this industry if I wholesale a property? After he had a long laugh, when I was dead serious, he explained that I'd be the problem solver liaison.

You can be honest and successful... go for it! :-)

@Andre Clemons

If you are making money while helping people and can sleep at night, you are doing the right thing

I've never wholesaled a deal as I try to keep them for myself but you are starting off the right way by wanting to be honest and upfront.  There is no need to lie to make a deal.  It will catch up with you and you won't be in business long.  I want those I've purchased from to refer me to their friends in the future.  Keep it on the up and up and you will be fine.  Good Luck, Mike


My advice would be don't be so worried about where the money is coming from. If you can link them to a cash buyer that will pay them the amount that you promised them, it doesn't really matter if the money came straight out of your bank account. The fact is that you handled the deal and the result is what you told them it would be in the beginning. Think about it this way, when people are buying or selling a house on the market for retail prices, they will talk about the agents involved, the inspectors the mortgage brokers, the underwriters, the buyers/sellers but very rarely will anybody mention the actual bank that lends the mortgage. The people who handle/control the deal are the one's that are important.   

Your concern should be that you find a buyer that can actually close. If she or he can close, 99 out of 100 sellers will not care who she or he is. 

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