Wholesaling...Is it a legal practice?

[Shalay Cano]

I am attempting to begin my real estate investment business. I have been getting mixed reviews on whether the practice of wholesaling is legal or not. I've read that the benefits are that you need very little capital to do it,and  that you can receive a finder's fee of sorts. I'm also told that it is not ethical or it is fraud to put a house under contact that you are not able to buy, and are not truly intending on buying. How exactly can you do this legally and ethically? I am a real estate agent, so I want to see how that factors in as well. 

[Darrin Carey]

Wholesaling can be done several different ways. Some are legal, some are not. Regardless of the way you choose, it doesn't matter whether you are an agent or not.

If you have no intent to perform on the contact if you do not assign it, it is absolutely unethical, and most likely illegal. In this case, being an agent and listing it is the right answer.