Ethics often determine the long-term success of paper flippers. Transparency, fairness, and genuine care for the seller's situation should guide every deal.
Here’s how to operate ethically:
Clear Communication: Always disclose that you're wholesaling the property (paper flipping) and not purchasing it directly. Clear communication eliminates confusion and builds trust. This can not be stressed enough. Transparency is always key in wholesaling.
Avoid Exploitation: Understand that many sellers you work with might be in financial distress. Ensure your offers help their situation rather than take advantage of it. Although the goal is to of course make a profit, keep in mind that it is not to further cause distress to the seller.
Fair Offers: While you aim to make a profit, avoid making unreasonably low offers just because the seller is in a bind. Fair offers reflect respect and professionalism.
Accountability: Document every part of your transaction. Provide both sellers and buyers with clear written agreements. This practice prevents disputes and miscommunications. You don't have to disclose your wholesale fee but contingencies and any other pertinent information should always be disclosed.
Operating ethically sets you apart from competitors and ensures your business has sustainable growth and a positive reputation in the industry.
The information in this article are of the opinion and experience of the author. Due diligence should always be practiced before investing in real estate.
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