I'm having this way of thinking in regards to saying "we buy houses " so I'm starting to say "cash for houses". It kind of seems unethical and especially if your seller finds out what's going on it seems deceiving in the wholesale world. I usually tell people and let them know exactly what's going on so they can decide themselves if they want to do business with me but however sometimes wholesalers get a bad name. What are your thoughts on this?
I am a wholesaler myself. I have struggled with this issue as well. There are many ethical theories you can use to analyze weather it is ethical or not. Depending on your theory you will come to different conclusions. The theory I use to look at this ethical issue is act utilitarianism. They theory states that a person's act is morally right if and only if it produces at least as much happiness as any other act that the person could perform at that time. In a sense, act utilitarianism focus on the consequences of an act, both positive and negative. The first step to applying this theory is to identify the consequences, then it is to identify the parties involved, and lastly, analyze how much happiness/ unhappiness each party receives. When you buy a house, the parties that are present are 1, the buyer (you) and 2. the seller. Both parties have positive consequences after the act. The buyer is happy because he/she now has a home that they can profit from, and the seller is happy because he got rid of a burden and has cash in his/her hand. So you can see that by doing this act you are overall, bringing more happiness. So by using act utilitarianism you can conclude that this act is considered ethical.
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