| Is real estate wholesaling illegal? I have heard this | | | | exchange for cash. This over inflation is a result of |
| question asked dozens of time by new real estate | | | | the market value of a home being far less than what |
| investors from across the United States and my | | | | a crooked appraiser can pull sold listings for. |
| answer is always absolutely not! Many people | | | | Real estate wholesaling on the other hand is a |
| mistakenly put wholesaling in the same category with | | | | completely legal activity. Most wholesaling transaction |
| the property flipping scams that are now heavily | | | | involve either selling a contract to another investor, |
| publicized by the media. Illegal property flipping and | | | | or buying the home and immediately selling it to |
| real estate wholesaling have nothing in common. | | | | another investor at a discount. Unlike illegal property |
| Illegal property flipping is a result of buyers paying | | | | flipping with real estate wholesaling nobody is getting |
| over inflated amounts for a piece of real estate. | | | | hurt. Wholesaling presents the perfect win-win |
| Then they either getting a large amount of cash | | | | scenario for all parties that are involved with the |
| back at closing or they are working hand in hand with | | | | transaction. The buyer is happy because they are |
| the sellers who then pays them off in exchange for | | | | getting a great deal on a piece of real estate and the |
| buying the piece of property at an over inflated price. | | | | wholesaler is happy because they are making a |
| The buyer is essentially sacrificing his or her credit in | | | | $5,000-$10,000 fee for their services. |