There are so many scams out there, it's difficult to determine what is legitimate these days.

However, I don't think it accurately depicts a true and successful wholesaler running a legitimate business.

Tapping to improve properties as part of your regular business model is legitimate. 

Largely for no legitimate reason.  

I'm over it this is pointless and there is no law that says you can't do a double escrow so wholesaling is completely legitimate.

Of course this is assuming the property has a legitimate real appraisal that is approved by the lender.

To have a legitimate business rather than a hobby means operating for the purpose of making a profithttp://www.irs.gov/newsroom/article/0,,id=169490,00.html...but this is not all that defines being in the business of real estate.

a wholesale contract should be no different than a regular transaction with the exceptions of a few special stipulations.Two things investors look for.. legitimate equity and great cash flow (most people desire areas that are not constantly under the threat of crime).  

I can attest that many of the folks who have responded are legitimately active in this market and are great resources.

So, in a way, you need to underwrite the debt fund sponsor that you are actually investing with, and either the borrower, or in the case of a fund, I would want to see very clear underwriting standards for how they underwrite the actual borrower and borrowing entity.There are equity positions that are legitimately creating cash flow, albeit typically much less on the front end, with the chance for appreciation.