It is not a matter of ignorance on my part that I disparaged the practice of the "find and assign" method.
Klever and I agree on how it works, or how it is supposed to work when it is successful.
The disagreement that I have is in the ethics of the practice - when buying from uniformed, sometimes elderly individual home sellers. I have no problem with you buying in bulk, or in pieces from banks and investors.
Banks may be foolish enough to sell at huge discounts at auctions or in bulk outside of the MLS when they could net more selling their properties through traditionally listing them on the MLS. - I have no problem if you are able to take advantage of foolish banks and witless asset managers.
Every REO contract addendum I have seen. ( I have read dozens of these contracts ) Every REO contract states that the contract is NOT to be assigned. Either you and the bank sellers are ignoring this contractual item in your assignments, or you are negotiating them out of the contracts.
I said I was disparaging and continue to disparage wholesalers who target individual homeowners who are unaware of their property value. You see, while I believe in the theory of evolution of the species as proposed by Charles Darwin, I do not believe in the morality of social and economic Darwinism.
Economic Darwinism at its greediest proposes that it is okay to take advantage of foolish people and senile people. The proponents and defenders justify their actions by analogy to the law of the jungle. Survival of the strongest by the strong (those with superior market knowledge) over the weak ( Elderly, trusting and uninformed homeowners)
When a licensee in California is purchasing real estate from a consumer,she or he is obligated to disclose to that seller that the purchaser holds a real estate license. Whether you are licensed or not, you are not exempted from the golden rule which is to treat others as you would wish to be treated. Certainly, an impaired or naive homeowner deserves to know that they are selling at a HUGE discount to what they could sell for if they listed on the MLS (the capitalization is Klever's - not mine)
My attacks are on a fairly narrow segment of people who call themselves wholesalers. That is those who mislead longtime homeowners about the value of their property and the alternative or mainstream methods of selling property. Also those who disguise their intention to assign the contract to another buyer. Klever describes it as the simplest form of wholesaling. Perhaps it is so simple because extras like disclosure and fair dealing are not standard included equipment.
While wholesaling might make tremendous sense to the Klevers of this world, and be "easy money" it is a lose- lose proposition for the credulous homeowner who gives his property to Klever and his associates at a 20%, 30% or more loss, when they could easily have disposed their property much closer to its market value for a marketing fee averaging less than 10% - Many consumers on Trulia object to the famous 6% fee on a market rate sale. Isn't a wholesaler discount of 30% five times worse for the consumer?