All Forum Posts by: Richard C.

As to respect: I imagine that there are many on Biggerpockets with children or other loved ones who are developmentally delayed. You might want to think about that before taking umbrage at a trivially minor profanity and an irreverent joke.

What percentage of your contracts close? If you cannot find a cash buyer, do you close yourself?

If so, great. You are an investor. If not, you are not offering a solution, you are trying to take advantage of the unsophisticated and/or distressed.

Seller needs to get out from under fast. Can list with realtor and be out in 60-90 days. You find them, offer a quick cash close. Lock up an option for 30 days. Fail to find a buyer, and bail. Now that seller who couldn't afford to wait 60-90 days is looking at 90-120 days.

If you are going an offer with a "partner" (I assume you are using this word to refer to your hoped-for eventual cash buyer), then you are acting as a broker, finding that "partner" a property. Which is OK if you have the requisite license and follow the rules.

If there is no "partner", but just a buyers list or the hope of marketing to a cash buyer, then you are lying. Sugar-coat it however you want, but you either have a partner or you don't. And you are offering hurting people an out that you HOPE you will be able to deliver, and making a fine profit doing so.

You are not providing a "solution" unless you close.

A great many wholesalers make offers they have no intention of closing on. The WHOLE POINT of doing that is to gain an advantage for himself (the ability to market the property for a profit) at the expense of the seller (who loses the ability to market it themselves.)

The OP asked why some consider wholesaling illegal or unethical. The answer is because many common wholesaling practices are illegal, and many more unethical.

Never claimed to be a believer.

Of course you can sell a contract like your Tennessee friend. You can probably sell several. You are doing volume, doing it as a business, and maybe not.

That's really the point. There is a lot of chest-thumping on here about how you can do what you want with your own "property." ( Whenever I see that I always think of a character from a show my kids watched when they were little. Look up "Fuzzy Lumpkins" on YouTube.)

The fact is that when you are not conducting personal transactions, but are in business, different rules can and frequently do apply. That is not a Constitutional violation, not a violation of property rights, and not unreasonable.

Most wholesalers would be better off just keeping their heads down.

And yeah, I have a serious problem with the ethics of entering into contracts with no intention or ability to perform. You can say "caveat emptor" and "my contract allows assignment!" and things like that all you like, and legally you are probably covered. But willfully taking advantage of those less sophisticated is unethical in my book.

As to my credibility in your eyes: Don't care.

There are states that require licensing based simply on sales volume, such that companies like Toll Brothers need to get licensed to sell homes they build. I think Wisconsin is one.

There are a number of other states where real estate business entities need to be licensed or registered.

In any case, I wasn't arguing that wholesaling was necessarily illegal. I was arguing that people were not insane or blindly self-interested for thinking so. And that state regulatory bodies may feel that they can write rules covering wholesaling under their existing enabling legislation. And that no realtor complaining to their state commission about a wholesaler was committing a tort by doing so.

This thread sure came back from the dead!

I suspect that the technology will shortly be making a difference, but not with entirely printed homes. But I could sure see what would essentially be extruded-concrete foundations catching on. As well as various decorative masonry elements, when the tech gets that far.

Not angels. Few of us are. But most of them are, to a large degree, rational actors.

Why would a agent want a listing at $300k over actual market value. So he can spend money advertising it, and time showing it, when it will never sell at the asking price?

To be honest, it is more likely an agent will press a seller to price too low. Even though a higher price yields a higher commission, a below-market price means collecting that slightly smaller commission in exchange for much, much less work.

This is, with all due respect, nonsense.

I can (and in fact do) own six automobiles. They are "unrestricted" assets.

And if I sell more than 4 of them in a year, I need a dealers' license in this state.

Would I be investigated and fined for selling 5 personally owned vehicles in a year? Not likely. But that is because I was under the radar, and the licensing bureau would never even know. And even if someone complained (say, a licensed and bonded car dealer who is following all of the rules and thinks I should to, so I cannot undercut his prices by not paying the costs of complyng with the law) it is unlikely that the state would do more than send a C&D.

The first year. If I do it again, they'll get interested.

And even if the Constitution is not somehow revoked, they will win, and I will lose, and I will pay a fine.

"That person is not a licensed real estate agent. He appears to be facilitating real estate transactions. Please investigate."

There is not even an accusation there. There is certainly no legal burden of proof. And no right to "confront the accuser."

This is silliness.

I really have no idea what you are saying.

Anyone can be sued, sure.

But tell me, because I am curious, what would the cause of action be, exactly?

Not any sort of defamation, certainly, not for telling people an unlicensed person is unlicensed. Truth being an absolute defense and all.

Really, what are you saying? Is this some sort of veiled threat that real estate agents should keep their mouths shut, or sleep with the fishes? Or if not sleep with the fishes, face bogus BBB complaints and frivolous lawsuits?

Ummm...ok?

Can't wait to see the BBB complaint against a broker for "badmouthing" someone. Someone with whom the broker has no business relationship.

"BBB Action: Complaint investigated and resolved in favor of the business."