The Straight Truth About Wholesaling
Hopefully this story will clear the air for you.
Bob makes his living buying properties at wholesale prices. Bob’s clients are investors who are looking for homes to buy, and do not have the time or knowledge to find them. Most of his time is spent driving around neighborhoods that are revitalizing. He drives slow and looks at every home. Sometimes twice. When he spots a home with deferred maintenance or one that looks vacant; he stops to talk to the occupants and the neighbors.
Bob wants to find the owner so he can make an offer on the property. Bob offers a wholesale price, and never intends to buy the home. If he can get the home under contract, Bob plans to sell the contract to another buyer to close under the same terms. Bob will walk away with several thousand dollars in his pocket without ever buying a property.
Some call this assigning a contract. You may even see in the offer terms that the buyer is, “Bob and/or assigns.”
There is nothing illegal about wholesaling properties. If you are in a desperate situation, this could be your only way out.
If this practice leaves a bad taste in your mouth, I understand. You want to sell your home at the highest possible price.
My problem with this practice starts when the wholesaler is a licensed agent. This runs counter to the Code of Ethics that governs our industry and can easily become a conflict of interest.
Real Estate Professionals should avoid all conflicts of interest.
This review is from one of my clients on Zillow, “[Steve] is a consummate professional who puts his client's interests ahead of his own. He's extremely knowledgeable about all facets of real estate and I will definitely use him again in the future.”
If you know someone who is heading in the wrong direction, hit reply so I can help. I’ll help them to get the most that they can get for their home in every possible way.
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