I try hard to be moral in all aspects of life, so this question pertains to that.
I’ve read a lot about flips, bird-dogging, and other REI methods. They are obviously legal, but are they moral? The way I understand it, and I may be wrong, the intent is to take advantage of someone’s predicament.
For example, I find someone that is recently divorced and can’t afford to keep their home. The property is worth $150,000 and she still owes $110,000 on it. I tell her that I can put cash in her hand and keep her out of bankruptcy or foreclosure if she will sell the property to me for $120,000. She likes the idea of $10,000 cash and keeping her credit and we close. I then turn the property around, sell it for $140 - 145,000 (quick sale) and make a neat $20 - 25,000 profit.
I know this is a simplistic version of events, but it is the basic gist. My problem is that I am basically tricking this woman out of her equity. It seems that the moral thing to do would be to offer to help her sell the home for a standard realtor’s fee of 3%, or even to split the profits with her. That would be an honest attempt to help her while profiting. The flip thought process is to hide the truth concerning the profit and ability to sell quickly, thereby making the seller feel they have no choice but to let me handle the deal for them.
Am I wrong on this? :help