Why does "Wholesaling" have a negative connotation?

[Grant Sylvester]

Hi Everyone! I'm newer to BP, the forum that is, but I've been a huge fan of the podcast over the last year and a half. I've learned a lot and I'm grateful for the platform! I'm interested to hear from different people if they think "Wholesaling" has a negative association and why? Any thoughts, feedback or questions are welcome!

Thanks in advance, Friends! 

[Susan Maneck]

Wholesaling is sort of a grey area legally. They are basically selling real estate without a license. I don't have a problem with it if the seller is fully aware of what is going on, but some of them don't. I've bought one property from a wholesaler and I know the sellers were well aware of what is going on, in fact they were there for the close. That particular property had an unpermitted house on it in addition to the main house. Now this was Mississippi, where such things are largely ignored but lenders care. In other words, it had to be a cash deal and those are the sorts of properties wholesalers should deal with, IMO. What I object to are wholesalers who snatch up properties on MLS without ever planning to buy them and then attempt to sell them to someone else at a profit. When I spotted one wholesaler was doing this with a property I had intended to bid on I asked my real estate agent to let the seller's agent know and made a backup offer with a close in 14 days. As expected the wholesaler didn't have a buyer in time and since now the selling agent knew what was going on he refused to extend the close and I ended up with the property.

[Jonathan Greene]

Asking why wholesaling has a negative connotation is like asking why we don't all buy our sports tickets from scalpers.