The spread, When do you buy and then sell to make bigger profit.

[Loren Oatman]

I was talking with an investor friend about the wholesale spread on assigning a contract and how some rehab buyers not liking when you make more that 20k on a contract. This number depends on the deal. I asked him if I put a property under contract for 30k and wanted to assign it for 50k would it bother him? The house needs 40k in repair and the ARV is 200K. Just for numbers. He said yes. I asked Why?

He said at first if the deal was from and old lady who didn't know the value of her house and you did this it would be immoral. I agreed. In addition the possibility of a family member contesting the deal and such. Note this is not a real deal and there is no older lady involved. He just countered with the scenario. I don't believe in taking advantage of people and we closed on the old lady thing. 

I asked what if it was a family member in another state or a business for what ever reason sold it to me? He still had a problem with it. My friend is a good person and not at all greedy. I pointed out that in the deal you would still make 80k on the deal minus closing and sale cost.

What do you think. At what point is the spread a buy and resell.