Sometimes real estate is about doing the right thing, even if the right thing is not the most lucrative option. I wish more people understood this. I’m a Realtor and an active real estate investor in Lubbock, TX. Lubbock is a wonderful West Texas community and is home to about 300,000 people and Texas Tech University. I help regular people buy and sell their dream homes, but my true passion lies in helping investors from all across the country pursue financial freedom through real estate investing, in my local market. I take pride in putting together good deals for my clients while still doing business ethically at all times. Most people in the real estate industry hold themselves to some level of ethical behavior, but a few people will do anything for a profit. As investors, being 100% ethical can be like walking a tight rope at times, but it can be done.

Two weeks ago, I got a call from a fellow first responder. (I’m also a career firefighter for the city of Lubbock). He told me that a real estate investor contacted him about his previous home that was currently sitting vacant. This conversation led to the two men meeting and the "investor" eventually making an offer on the home. My friend didn't necessarily want me involved in the transaction, but he did want me to look over the contract that was provided and make sure everything looked okay. I gladly do things of this nature for free for anybody who asks. I met him at his previous home to look over the contract and the house. I quickly realized that the person attempting to buy the home was a real estate wholesaler. This post is NOT a shot at wholesaling! I have acted as a wholesaler on several occasions and I have also gladly purchased properties from wholesalers. I know wholesalers who provide value to buyers, sellers and agents all the time, but it was a little different in this situation.

As I read through the offer that this "investor" gave to my friend, I noticed that there were many mistakes made and many important things completely missing. My friend was told that if he signed this contract, he was guaranteed to receive $145,000 for his home before the end of March. I've looked over hundreds of contracts in my career and this was by far the absolute poorest attempt at making one I had ever seen. The dollar amounts for the potential sale, on the first page of a standard TREC contract, were not even put in the correct spot and there was literally no mention of an option fee, earnest money deposit, and several other items. My friend was told several things that were just not true. The contract did not in any way, shape, or form represent what was promised to my friend and the "investor" would potentially have no consequences for not delivering on his promises. I understand that it isn’t uncommon for wholesalers to get a property under contract without any option or earnest money at risk. What really upset me is that this wholesaler guaranteed several things to an unsuspecting homeowner and straight up lied to him about multiple things, including the actual value of his home and what would really happen if he signed this contract. Is it not our duty as investors to at least be honest with all parties?

I've had the pleasure of working beside this man, serving the community of Lubbock as a first responder. I know him to be a very good man and a very intelligent man. He has a wife and three children, one of which has special needs. His dedication to serving his family and our surrounding community warms my heart. The fact that someone almost completely took advantage of him was very upsetting to me. If it can happen to him, it can happen to anybody. After explaining my concerns, the homeowner decided not to sign the contract. He also decided that he would let me handle the transaction. At this point, I realized that I was in position to potentially make a quick $20,000 by performing a similar strategy that the wholesaler was trying to do. I could've easily done that, but it would be at the expense of the homeowner. It was certainly not the right thing to do and as a REALTOR, it would go against my code of ethics to do so. He was in a good financial position where he did not need to just accept whatever offer came his way, so I acted in a manner that I thought would most benefit him. We decided to publicly list his house and properly market the property through various channels like the MLS, social media, my personal network of agents and investors, and a few other online platforms. I kept him informed of every single detail and made sure he understood the entire process. I never once made any false promises. I told him what I expected the outcome to be and ensured him that I would do my absolute best to achieve the desired result. He wanted to sell the house quickly while still getting a fair value for his home.

With the help of other Realtors and investors, I was able to present this man with 11 REAL offers on his home, three days after the casual phone call that he made to me. Together, we picked the offer that made the most sense and got his house sold. It took 10 days to get from a friendly phone call to get to the closing table. He left the closing with over $157,000 in his pocket, after all closing costs and commissions that he was happy to pay. By trusting me with the sale of his home, he gained an extra $12,000 and got it much quicker than he otherwise would have. On top of that, a wonderful family gained the keys to their new home and will soon start remodeling it and turning it into their dream home. I may not have made $20,000 on this one, but I’m willing to bet that I get a lot of business over the next several years from this man’s friends and family.

The real estate industry is filled with all kinds of people. A small amount of bad apples have created the illusion in many people’s eyes that Realtors and real estate investors are the enemy. This definitely makes it harder on the rest of us. Do you identify as a good apple or a bad one? If you identify as a good one, keep up the good work! If not, I encourage you to think twice the next time you have an opportunity to really take advantage of someone. It could negatively affect someone and their family in ways that you’ll never know.

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