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Updated 2 days ago on . Most recent reply

How can I remain ethical while just starting out?
Hi everyone.
Hope y'all are having a wonderful day. I'm just getting into real estate and the idea of wholesaling, which I see as a low barrier, cost effective way of getting some deals and learning the ropes of contracts, property analysis, networking, etc.
One question (of many) that I have is how to remain ethical in this business, especially without having much up front capital? The only way I'd be interested in doing any deal is with a high level of transperancy and keeping in mind the best interest of all parties involved. I know that it is unethical - and in my state (Texas), illegal - to get into a contract without proper funds (I am in college with ~$6,000 saved).
I am in no position to buy a house (or so I believe) or act like I am able to buy a house. So, is it possible to ethically and legally enter contracts without much capital? To those who started out without a lot of money, how did y'all handle this?
Thank you for your time and responses.
Most Popular Reply

- Rental Property Investor
- SE Michigan
- 5,820
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Scenario:
You've found a seller that is disorganized, confused, and anxious to sell a property quickly at a good price. They don't have the time, knowledge, or capacity to take care of it themselves.
You explain to the seller that you are wholesaler. You get properties under contract and then work hard to find someone else to ultimately buy the property. You can be honest that you will not be the ultimate buyer. Have in your contract that if you do not assign the contract within X days the contract becomes null and void. Explain that to them.
Even if you do not have enough money to buy the property yourself, how is this scenario unethical?