I just bought a wyndham timeshare like this for about $1400 all in with closing costs and transfer fees.  

This is particularly beneficial in popular tourist areas where demand for short-term lodging is high.Flexibility: Owners can choose when to rent their property, allowing them to use it personally during off-peak times.Support for Local Tourism: STRs provide a unique lodging option for tourists, helping to boost the local economy by attracting visitors who may prefer a home-like stay over traditional hotels.Diversification for Investors: STRs provide real estate investors with an additional income stream, especially if they own properties in tourist-heavy areas.Cons:Strict Regulations and Higher Fees: San Antonio recently updated its STR regulations.

Acting like a broker dealer is scarily common.

Is this a common practice?

Yeah they are probably right, I like working with investors better because its more business based.

I like that market for STRs.

You don't want to repeat this situation.

This is technically a method of buying/selling real estate, which is illegal without a real estate or law license. 

Like Rob says, he buys places that he wants to live and can vacation in at some point.

This is a tough one.