Investor · Jacksonville, FL · Member since 2015 · 504 posts · 217 votes
Should a wholesaler be considered shady if they are buying cheap off of mls and then doing a mark up to sell to another investor? What is reputable course of action for a wholesaler to earn and maintain trust of investor colleagues? I feel like a wholesaler who has done the leg work to acquire an off market property at a deep discount should make a decent amount of money for the time spent , but I have a problem with them paying Penny's on the dollar for an off market property and then trying to sell tt for near market value..
The only thing that should matter to you is - is it a great deal for you? How much the wholesaler makes is irrelevant. If someone has negotiated a great deal on a listed property and your price is still a great deal for you, why do you care where the deal came from?
What if someone inherits a property for free. Should they be limited on how much they make on it? Let's say it is worth $500K but they got it for free. Are you saying they should only make a "reasonable" profit of $5000 or $10,000 or some other random number you come up with, because they got it for free?
Why Should it be any different for a wholesaler?
PS to answer the question in the subject line, absolutely a wholesaler can be a crook. Many are, arguably most are. Although my belief the bigger problem is newbies that have been led down the rosy path by Gurus and have unrealistic expectations. They also don't know how to really evaluate a deal.