Rational people would tell the seller they are identical.

If the builder already owns the lots and is ready to go (particularly if it has plans and permits), private money could make more sense.Also note that it's possible the builder isn't making a perfectly rational economic decision.

As humans we tend to make emotional decisions and then rationalize them...no humans are more susceptible to this than investors.  4.  

We, as humans, are not one-bit rational beings. 

In so doing, I have some unrealized profits early on, still have positive cash flow day one (for insurance, not profit, on a property that wouldn't normally be cash flow positive and therefore attracts rational, responsible, and high quality tenants), and can hold for long term from a position of strength for rent and price appreciation ... and, low and behold, that market appreciation has consistently appeared.

From what I've read on BP, it seems like there are people who don't really want to know if wholesaling is legal in their state, they want to find some rationalization that give them the go ahead to do what they want to do. 

Never force with risky capital or rationalize around your criteria👍 

The market displayed every classic symptom of a mania; the progressive narrowing in the number of stocks going up, the nationwide fascination with the activities of Wall Street, the faddish implications of a new era, the suspension of every conventional standard of financial rationality. and the rabble enlistment of an army of amateur and ill-informed speculators betting on the basis of rumors and tip sheets.By 1929, anywhere from two to three million households, one out of every ten in the country, had money invested in and were engaged in the market.

Also it's over saturated which means the numbers are way more difficult to make any rational sense.

Suddenly confidence gaps and blindspots loom larger than rational data analysis.It’s natural to feel uncertain when navigating uncharted waters.