Is Real estate wholesaling related to equity skimming?

[Lala Mala]

Somebody just told me in Washington state wholesaling can be considered equity skimming. Is that true? 

[Lala Mala]

Quote from @Account Closed:

Quote from @Lala Mala:

Somebody just told me in Washington state wholesaling can be considered equity skimming. Is that true? 

It isn't wholesaling that is the problem. It's the amount of profit made in the transaction. It's Washington State after all. If the Attorney General believes you took advantage of a "protected person" or were involved in a preforeclosure or made the wrong promises or made too much money, that is when equity skimming becomes a problem.

I don't believe that the percentage of profit, is clearly spelled out. 

Do business in Washington at your own risk.

Yes, wholesaling can be done but you have to follow the "rules" which is kind of like nailing jello to the wall.

 Take a look at this Thread to get a clearer picture:

https://www.biggerpockets.com/...

Thank you again! I’ve been looking into wholesaling for about 6 months now, I’ve not close on a deal yet but these are some great information to know before getting a deal.