All Forum Posts by: Eric N.

First of all, welcome to the game — and props for putting in the work to educate yourself before jumping in.

That said, you need to know that Pennsylvania recently passed a law that severely restricts wholesaling activity. It’s part of a broader trend where established players in the real estate industry team up with lawmakers to pass legislation that effectively locks out newer competition. While many of these laws are driven by political and financial motivations — and in some cases are questionably legal — once they’re on the books, violating them makes you directly liable. So you have to be smart about your approach.

Your first step should be to consult with a seasoned, investor-friendly real estate attorney who is familiar with wholesaling in PA. Ask them directly: “Can I wholesale in Pennsylvania, and if so, how do I do it legally?” Don’t rely solely on online advice — the legal consequences are too steep.

If you're cleared to proceed, a few key principles will help protect you:

1. Transparency is everything. Add a simple clause to your Purchase and Sale Agreement (PSA) stating that you reserve the right to assign the contract to a third party.

2. Include a clause clearly stating you are not a licensed real estate agent or broker, and you are acting solely as a Principal — meaning you’re buying for yourself and not representing the seller or any buyer.

3. Review those clauses with the seller in person or on a call. Make sure they fully understand what they’re signing. This helps avoid issues later, especially from unethical sellers who might try to cut you out once you bring them a buyer. They will accuse you of misrepresentation to breach the contract with impunity, so don't let them do it by making sure your contract is properly written and is fully transparent.

Unfortunately, even if you follow the law to the letter, PA's new rules allow the seller to cancel the contract within 30 days for any reason. So there's a real risk of doing all the work — finding the deal, finding the buyer — only to get cut out in the end. You may want to consider focusing on states with more investor-friendly wholesaling laws while you get your footing.

As for finding buyers: if the deal is truly good, selling it is the easy part. A strong deal practically markets itself. Start by posting in Facebook investor groups, InvestorLift, and similar platforms. Over time, you’ll want to attend local investor meetups and networking events in Philly to build your own cash buyer list. That network becomes one of your biggest assets.

Last thing — remember: bad deals don’t sell, no matter how good your buyer list is. Focus on finding deeply discounted properties. If you bring real value to the table, you’ll build your reputation fast.

Best of luck — and stay compliant out there.

How to Wholesaling Ethically in Real Estate: A Step-by-Step Guide

Wholesaling in real estate can be a profitable venture, but it’s essential to approach it ethically and legally. If you want to build a sustainable business, it’s important to avoid common pitfalls, maintain integrity, and protect yourself from dishonest parties. Below are key guidelines to ensure you operate in an ethical manner while minimizing risk.

1. Don't Steal Deals or Undercut Other Wholesalers

One of the most unethical practices in real estate wholesaling is stealing deals or undercutting other wholesalers. It's crucial to avoid directly going to the buyer and bypassing your wholesaler in an attempt to pocket their fee. Always respect others in the industry and be transparent with your actions. Maintaining positive relationships with other investors and wholesalers will serve you well in the long term.

2. Be Honest About Your Intentions

If you're not planning on buying the property yourself, but rather intend to assign the contract to another buyer, it’s important to make this clear from the beginning. Always include language in your contract stating that you have the right to assign it. Make sure the seller understands that you may not be the end buyer. This protects both you and the seller and helps avoid misunderstandings later on.

3. Protect Yourself from Unethical Sellers

Not all sellers are ethical, and some may attempt to backtrack on agreements or accuse you of being dishonest. They might even claim that you acted as an agent, which can create legal issues down the line. To avoid this, make sure all terms of the deal are explicitly outlined in the contract. This will safeguard you from sellers who may later try to claim you misrepresented yourself.

4. Use a Reputable Title Agent and Attorney

Having a trusted, investor-friendly title agent and attorney is essential. They'll ensure the legal aspects of your deal are properly handled. Once you've secured a ratified contract with the seller, send it to your title agency and place your earnest money deposit (EMD) into escrow. This makes your contract enforceable and legally binding. Additionally, consider filing a memorandum of contract with the county to protect your interests. This step helps prevent unethical buyers or sellers from attempting to undercut your deal.

5. Include an Inspection Period

A study or inspection period is a valuable addition to your contract. It gives you the right to cancel the deal within a specific time frame, for any reason—or for no reason at all. This provides flexibility if you find that the property isn’t worth what you initially thought. Without an inspection period, you may find yourself stuck with a deal that no longer makes sense.

6. Funding Your Deal: Hard Money and Private Lenders

If cash flow is a concern, consider reaching out to hard money or private money lenders. Many of these lenders operate on an asset-based model, meaning they’ll evaluate the property’s value rather than focusing on your creditworthiness or income. With a relatively small down payment, you could secure a loan to purchase a property worth hundreds of thousands of dollars. If you’re short on the down payment or closing fees, consider partnering with another investor who can provide the capital.

7. Wholesaling vs. Buying and Flipping

Wholesaling is not the same as buying and flipping a property. If your primary goal is to assign a contract to an end buyer, all you need to do is find a buyer within the inspection period, or back out if you’re unable to. Wholesaling is legal and ethical as long as it’s done correctly, following state regulations. The key is being transparent with all parties and sticking to the terms outlined in your contract.

8. Understand State-Specific Laws

Some states have specific laws that regulate or even prohibit wholesaling. It’s crucial to do your due diligence and consult with a reputable real estate attorney before starting any wholesale deals. Wholesaling isn’t inherently unethical, but some state legislatures have passed laws limiting the practice—often with the support of larger, established real estate players who want to reduce competition.

9. Avoid Illegal Activities

Whether you’re wholesaling, flipping, or engaging in any other type of real estate investment, always make sure you are operating within the law. Engaging in illegal activity, whether intentional or not, can lead to significant legal issues. If real estate contract assignment is legal in your state, proceed with confidence, but always follow the law to the letter.

Conclusion

Wholesaling can be a highly profitable real estate strategy when done ethically and legally. By being transparent, protecting your interests, working with reputable professionals, and following state-specific laws, you can avoid the pitfalls that many new investors face. As with any business, doing things the right way will set you up for long-term success.

Before diving in, always consult with a real estate attorney to ensure you’re on the right path. Good luck, and happy wholesaling!

I understand your frustration and I appreciate the chance to clarify a few points. First, I want to make sure we’re on the same page about the basics. A free market operates on the principles of voluntary exchange—if I own an asset (whether it’s real estate or anything else), I have the right to decide who I want to sell it to and under what terms. I am under no obligation to sell unless I choose to accept an offer. The market is defined by this freedom, and that includes wholesalers who, rather than buying properties outright, make offers to sellers and then assign those contracts to end buyers.

Wholesalers provide a valuable service—by facilitating these transactions, they help bridge gaps in the market, especially in situations where homeowners are distressed or need to sell quickly. So long as everything is above board, this is hardly unethical. The concept of "contract assignment" is common practice in many fields, not just real estate, and is legally recognized across the U.S. It’s a standard business practice that can be highly beneficial to sellers who want quick, hassle-free transactions and to buyers who are looking for good deals.

Now, to address your concern about "gurus" and inexperienced investors: Yes, there are some who may not fully understand the market or how to properly conduct business, but that doesn't mean the entire industry should be painted with the same brush. The free market allows for experimentation and innovation, and while it’s true that some players might fall short of professional standards, that’s not an indictment of the business model as a whole. Buyers, sellers, and investors all have a choice in how they navigate this—if you don’t want to deal with wholesalers, you can choose to list with a realtor or sell directly. That’s the beauty of a free market.

Regarding the potential impact of restrictive legislation, the solution isn't more regulation, but more education and accountability within the industry. The key here is protecting everyone’s interests while maintaining the principles of a free market. Wholesaling isn't the problem; it's bad actors. Way too often I see underhanded sellers trying to breach contracts or unethical buyers who try to do the same, by undercutting wholesalers. And just try to call experienced in real estate professional (lawyer, broker, lender, contractor etc.) and share with them the details of the property you want to put under contract. Some will try to steal your lead by going straight to seller and treat you as a fool. What can be more unethical and dishonorable, yet so many others in industry, aside from unethical wholesalers, engage in this practice. Why no one talks about it?

And as for your specific example of "bad behavior" by wholesalers [of not buying the properties but locking up properties under contract and selling to others], this isn’t just smart business—it’s how the system is designed to work. The fact that one can expand and leverage the contract assignment in lieu of large capital , while limiting their risk,  is a clear advantage anyone should look into, not a flaw. If others want to engage in similar practices, they should be welcome to.

Ultimately, the market will regulate itself. Properties will sell when the price is right, and investors will thrive by finding solutions that work within their buy box. The real issue is finding a balance between entrepreneurial freedom and ethical business practices, which, in my opinion, isn’t solved by regulation but through transparency, proper contracts, and education for all involved.

If everyone stuck to sound principles—whether it’s marketing strategies or contractual terms—there’d be less room for confusion and fewer bad actors. But let’s not forget that a free economy encourages diverse approaches, and that’s what allows the system to grow and adapt.

 I respect your position, but I do believe there’s a bit more nuance here than the "either/or" view of the situation suggests.

While I understand the frustration with some "gurus" in the industry, it's important to recognize that these individuals, like anyone else, have a right to free speech, as long as they aren't inciting violence or violating criminal laws and federal regulations. Just as religious leaders are free to preach their beliefs, so too are entrepreneurs free to share their insights and strategies. It's the responsibility of adults to critically evaluate these ideas and separate valuable information from less useful advice.

Personally, I've never paid for a guru's guidance—I've been able to gather the knowledge I need through free resources. If I ever wanted to work with someone experienced, I'd consider a joint venture (JV) where we could mutually benefit by splitting fees, rather than paying upfront. That said, I understand that this approach may not work for everyone. Some people simply lack the skills or experience to navigate the complexities of the business on their own.

In such cases, it’s important to do thorough research and find the right mastermind or mentor before committing large sums of money. The onus is on the individual to ensure they are working with someone credible and capable.

And never forget the state of the economy, it’s no secret that the landscape has shifted dramatically since COVID-19. Many people are leaving traditional corporate roles due to toxic work environments and wages that no longer meet the cost of living. As a result, entrepreneurship has become a more appealing avenue for many, and wholesaling—due to its relatively low barrier to entry—is attracting a lot of newcomers.

However, the natural market forces will separate the truly committed and skilled from those who aren’t prepared. I don’t see the influx of wholesalers as a long-term threat. The reality is, there’s only so much anyone can do in this space. Newbies can’t outbid seasoned professionals and lock up lucrative deals because they lack the buyer demand to acquire contracts at prohibitive costs. Therefore, saturated or not, they can offer sellers only as much as seasoned wholesaler would, or else their contract is not worth the paper it's printed on.

We either deal with this dynamic or face the alternative of a tightly controlled economy, similar to what we see in countries like North Korea. Personally, I’ll take the system we have, flaws and all.

Thanks for sharing your insights! I’m curious—what skip tracing services do you personally use, and based on your experience, which one provides the best value?

Are you exclusively wholesaling in Pennsylvania? If so, how are you navigating the new regulations that have significantly restricted wholesaling in your state? On top of that, there's a law now that allows the seller to cancel the contract within 30 days after ratification. Which means seller and buyer can use you to connect them, and happily cancel the contract to consume all the fruits of your labor for free.

Are you working with a reliable title agency and attorneys who are advising you throughout the process?

My advice? Proceed with caution. There are numerous legal pitfalls out there, especially considering the influence of established players who have teamed up with lawmakers to push through laws that make wholesaling in Pennsylvania and several other states legally risky. If you’re going to wholesale in PA, it’s crucial to fully understand the regulations and follow them to the letter.

Hey BP community!

I’ve been diving deep into skiptracing and wanted to hear from YOU about which services are really delivering the goods. What skiptracing tool or service has been the most effective for you in terms of accuracy, ROI, and overall productivity?

Here’s the thing—there’s so much noise out there about what works, but I’m looking for cold, hard stats and real experiences. I’m not talking about the "try this and see" type of advice. I want specifics!

Some Key Points I’m Curious About:

• What skiptracing tool or service do you use? (Don’t be shy—let us know the brand and package level.)

• How accurate are the results? Can you give any numbers on success rate or percentage of correct leads?

• Is it worth spending more (10-15 cents per record) on a high-end service vs. more affordable options like DealMachine with its unlimited skiptracing?

• What impact has your skiptracing choice had on your KPIs (response rates, leads converted, cost per lead)?

• What’s been your overall ROI? Have you noticed any major differences in efficiency or productivity based on the skiptracing service you use?

Why This Is Important:

Skiptracing is one of the most critical parts of our process, and it's tough to figure out which tool delivers the best results for a reasonable price. Some people swear by high-end tracers like TLO or BatchSkiptracing, while others get solid results with a service like DealMachine which offers unlimited skiptracing with their basic package. Not even mentioning free skiptracing options that some wholesalers use.

I’m really interested in hearing your honest experiences—What’s working for you? And, more importantly, is it worth the extra spend when compared to more affordable, “unlimited” options?

Feel free to chime in with any stats, KPIs, or direct comparisons to help the rest of us make more informed decisions. The more data, the better!

I’ll be tracking this thread closely and will update with my own results once I gather more data on my end. Looking forward to learning from your experiences!

Thanks in advance!

Wholesaling is just like any other business. Many people try it, but only a few succeed. There’s no such thing as an “easy” business. That said, it's still better to run your own business than flip burgers at McDonald’s—or even work at a prestigious law firm, grinding through 60,000 pages of discovery and drafting a brief that references every point, all while being harassed by a toxic boss in the kind of corporate environment that’s become far too common in America.

If you think wholesaling is going to be easy, you'll be disappointed—and likely fail, fast and hard. It’s not easy. You’ll have to think through your entire operation, test and refine your marketing strategy, put in the work to talk to sellers, qualify leads, negotiate prices, lock up deals, find cash buyers, and stay on top of the legal side to ensure your contracts are enforceable. You also have to protect yourself from shady buyers who want to undercut you and dishonest sellers who try to go around you once you’ve brought them a buyer.

It's a high-stress, time-consuming effort—but that’s true of any business worth pursuing. And because wholesaling has relatively low barriers to entry, the space is saturated with people chasing a new “gold rush.”

Still, if you approach it with discipline, the right mindset, persistence, and dedication, there's no reason you can't succeed.

One more thing: everyone has an opinion on the “best” way to run your business. But ask them for specific advice and most will disappear—either because they don’t have the time or they see you as competition. That means you need to be independent, resourceful, and self-motivated. Talk to people, network, watch YouTube videos, and keep learning—but don’t expect miracles. It takes real work, discipline, and grit.

Money isn’t the first priority—it’s the last. There’s plenty of capital out there, both hard and private, if you know how to use it wisely. What really matters is your brain and your character.

Marty Boardman has classes where he teaches how to do pre-foreclosures and foreclosures. You can try it free for one week. https://www.instagram.com/fixandfliphub/