Well, @Heather M. I agree with Don. I read this thread, usually I don't read all the posts as I've found many contribute just to add to the forum folklore.
Most people on this forum have no clue as to what real estate or real property is, the difference between real and personal property. That especially goes to the marketing type gurus!
In my course at GREA (which is free BTW) I explain the difference between real and personal property, that is where REI types need to begin.
I don't mentor or coach or have any course for sale, I really don't need to do anything, I'm retired and did so around 52, mostly because real estate was really good to me. Read my profile, it's not all there, but the highlights will tell you about my experience. Just saying, no dog in this fight, it's all about teaching RE to help those really interested in our industry. If everyone on BP sent me a buck, it would just be a tax problem I don't need.
3rd page of a good thread with an intelligent title that is different, that means more folks will probably read it and respond, so, here it goes.
I don't know of any war between nations that started over building cars or any widget, many have started over land disputes or territories. Now why is that?
Because land is scarce, we can't make more dirt to live on, all personal property can be reproduced, we can make new cars, shoes or apple sauce. Land is unique, no two parcels are alike.
Most on BP have no clue about real property, we never talk about the social aspects of a home, never talk about what housing means to the community, the tax revenue generated, the amenities government provides, the security that shelter provides or any of the basic needs we reap from a residence.
That's why real estate is regulated, laws and ordinances are put in place to protect the concept of real property that doesn't apply to personal property. We don't treat real property like personal property, because it can't be replaced.
By the time we are 21, we've been exposed to business transactions, give a few bucks and get a hamburger and coke, buy a car, purchase shoes or clothes. We've already dealt in personal property, we understand selling for a profit.
When we take this experience and attempt to apply the business of trade to real property, as most do, they fail to apply the concept of real property and the unique nature of real estate, the difference that the estate carries socially, the importance to a community, the government of society, the functions that real property plays in our security, health and well being.
Nowhere in our Constitution is there any mention of the right to own a car, but real property is addressed and the rights we enjoy from ownership. Land ownership is sacred and owner's rights are protected. With those land ownership rights also comes responsibilities.
So, when you have folks with a marketing background that deals in widgets they are attempting to apply personal property "thinking" to real property, treating a home as a widget or dealing with it as they would a car you have a problem. That is totally inappropriate as they ignore the social, governmental aspects and legal rights of land ownership or real estate principles. You are not dealing with plastic houses and hotels on a Monopoly board!
When you are dealing with the average American, Harry Homeowner, you're most often dealing with their largest asset, it's generally the biggest investment they have made. This is one of the biggest reasons that every state has licensing laws, they are in place to protect the public ensuring that those dealing in real estate have the knowledge and background to deal with the public responsibly.
At law, the rights of an owner are favored over a buyer, a lender is favored over a borrower and consumers are favored over a dealer.
Ethics has been mentioned in this thread several times. Professional or business ethics are the written or unwritten rules of how we conduct business in an industry. (BTW, investors are not an industry, they deal in a niche of the real estate and finance industry.) Business ethics are the standards of conduct expected within an industry, these standards are not one person's beliefs or point of view, these standards are adopted by an industry over time, with considerations given to legal, social, economic and governmental aspects of that industry. Conduct in one industry may be acceptable but not in another industry.
Again, revisit the difference between real and personal property, what may be ethical for a car dealer may well be unethical in real estate and usually is. "Puffing" on a used car lot is almost expected, it is unethical and can be illegal in real estate.
While we all have varying degrees of personal ethics they may not be in line with industry or business ethics. Doing things that are illegal is unethical, suggesting others do something illegal is unethical as well. Deceiving another party is unethical in real estate. Ignoring ordinances, rules and laws is unethical conduct. Intentionally entering into a contract knowing your intentions and ability to perform are contrary to what was contracted is unethical, that's just lying and deceiving. You can only be an ethical wholesaler if you can pass through all of these gates, but you can't as your guru and wholesaling coaches teach it. Marketeers can put lipstick and pour perfume on a pig, but it's still a pig. Wholesaling is taken directly out of the personal property play book, be the middle man a "straw-man dealer". (BTW, I've often said that advertising is the art of deceit).
We hear the lame justifications of "sell the contract, not the property", bottom line, you are using contracts as a "listing" to facilitate a sale for a property owner. Study the "Laws of Agency" and the different types of agencies in business transactions, how an agency relationship can be formed. What constitutes an agency relationship in any business transaction? Like it or not, if you're in the business of wholesaling you are taking on an agency relationship.
Understand too that when you sell a contract, or any asset, there are implied warranties that what you're selling is merchantable, that the value is based on condition and usefulness in many ways. Now, if you entered into a contract without the ability or intent to perform, your contract is voidable, that means it is flawed legally, you're attempting to sell damaged goods and without disclosure of your ill conceived contract you created. That just bumps fraud.
Is your business based on selling voidable contracts? If you're a wholesaler assigning contracts for a fee, yes you are! And some want to talk about ethics!
For most of our youthful members here on BP, all of this is something they don't want to hear or recognize. Desperate people do desperate things, especially when they are seeing dollar signs. The gurus are playing on your desperation, you just don't see it.
Well, now you know a bit more, who do you want to be? :)
