Is Wholesaling Immoral?

[Tyler Mundy]

Wholesaling is new to me, and I have learned a lot about it within the last month or two. However, it seems to me that it is an immoral thing to do (though maybe I am missing something, which is why I am posting this). 

For example, if your parents owned a home and were contacted by a wholesaler to sell their home for $40,000 - $50,000 below market value, wouldn't you tell them just to put it on the market with a knowledgeable agent? That's a lot of money for them to lose! And, if you wouldn't feel comfortable with someone treating your parents like this, why is it cool to do this to someone else's parents? 

[Chris Mason]

Originally posted by @Tyler Mundy:

Wholesaling is new to me, and I have learned a lot about it within the last month or two. However, it seems to me that it is an immoral thing to do (though maybe I am missing something, which is why I am posting this). 

For example, if your parents owned a home and were contacted by a wholesaler to sell their home for $40,000 - $50,000 below market value, wouldn't you tell them just to put it on the market with a knowledgeable agent? That's a lot of money for them to lose! And, if you wouldn't feel comfortable with someone treating your parents like this, why is it cool to do this to someone else's parents? 

 A lot of the time it is, yes. For example, let's assume that the 'wholesaler' promised the elderly folks in your example that they could close in two weeks all-cash, and that this 'wholesaler' does not actually have the cash or anyone that's committed to buying 123 Main St at the time the promise was made. That is what we call "lying." If those elderly folks are facing foreclosure or something if it doesn't close in two or three weeks, that makes it even worse. 

The overwhelming majority of 'wholesaling' amounts to just being really really crummy listing agents who are practicing real estate without a license.