Attempting the unheard of... "Ethical wholesaling"

General Real Estate Investing
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Attempting the unheard of... "Ethical wholesaling"

Adrian Coleman
Rental Property Investor · Happy Valley, OR · Member since 2021 · 14 posts · 7 votes

I've been educating myself in real estate as a whole since mid 2020 listening to the podcast (from episode 1) and reading books such as "investing in real estate with no and low money down."

As I gained the knowledge I started to formulate my plan of action, my plan of attack so to speak.... That's when it hit me.....

Why not gain the knowledge of a smart wholesaler.

Yah I know what some of you are probably thinking as I've heard what the vast majority think about wholesaling but done ethically I think it would not only help generate leads but also connections as well.

So my questions to you are, Do you think wholesaling can be done %100 Ethically?

Ie: not putting a property under contract without a buyer in mind.

My thinking was that I can start by finding housing for buyers and not buyers for houses... Seems easier and takes away a lot of the guess work.

Do you think wholesaling is a good place to start? After all my end goal is to buy and hold and or house hacking.

I figured wholesale could help with generating capital in the meantime.

What are your thoughts?

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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
5y

Treat your sellers like you'd want yourself or a family member to be treated.  Provide solutions and help them first, then yourself, then your buyer.

I wholesaled and wholetailed a few places that didn't work for me beginning about ten years in.  It is in my opinion the most comprehensive strategy out there. It requires the most knowledge of any strategy I've done. 

When in doubt, do right by the seller and be honest with them always. Ethical wholesaling.

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  • Claudio Salvatorelli
    San Diego, CA · Member since 2020 · 150 posts · 54 votes
    5y

    Hey man, there is a lot of good information on how to start out with wholesaling. This YT channel might help you to find some information.

    https://www.youtube.com/watch?...

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  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    5y

    Wholesaling is great place to start and end.  There is nothing unethical about.  There are unethical people but that has nothing to do with wholesaling.

    2Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y

    Treat your sellers like you'd want yourself or a family member to be treated.  Provide solutions and help them first, then yourself, then your buyer.

    I wholesaled and wholetailed a few places that didn't work for me beginning about ten years in.  It is in my opinion the most comprehensive strategy out there. It requires the most knowledge of any strategy I've done. 

    When in doubt, do right by the seller and be honest with them always. Ethical wholesaling.

    2Reply
  • Scott M.
    Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
    5y

    We all speak from experience and since my experience with wholesalers is from the buying side I would echo what @Steve said but would change his last sentence to "Do right by the buyer and seller and be honest with them always".  In addition to adding the buyer to the mix I would get rid of the "when in doubt" part....because even when not in doubt you should do right by both parties.

    If you don't know, say you don't know.  if you are part of a daisy chain and not next to either party say so.  If someone told you it was rent ready say someone told you it was rent ready etc....as others have said the industry isn't bad, just has bad actors in it, good to see you don't want to be one of those : ) 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y

    Careful in Oregon if your not closing on the deal you may want to call the state.

    Hello Jay,

    Thank you for getting back to me. The advertising copy you attached to your email came out perfectly and will be very helpful. Thanks!

    The Agency is well aware that unlicensed “wholesalers” are rampant in our jurisdiction. Addressing the problems is like trying to put out small individual fires in a forest that is burning. The Agency’s investigations are complaint driven, so we rely heavily on the public, and our licensees to bring these individuals to our attention.

    Thank you again for the information, if I have further questions for you during the investigation I will certainly reach out.

    Best regards,

    Frances Hlawatsch | Financial Investigator

    State of Oregon - Real Estate Agency

    there is a lot of back and forth about do you need a license or not.. its clear if you not buying the home then you need one. If you want to do it the right way I would call the state and run your business model by them and get it blessed.. 

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