Real Estate Flipping: Is It Legal?
by: MayC |
Total views: 22 |
Word Count: 311 |
View PDF | Print View
Share This Article
A lot of people have the false impression of flipping, on whether or not it is legal. There have been some situations where investors, in their eagerness to close on deals, do some tweaking with the activities involved in flipping properties. However, flipping, in itself, is NOT illegal, but is a very legal, profitable business.
Flipping is when you buy a piece of property that you can "flip" or sell to another buyer for a profit. Anytime you buy and sell a house is called flipping. But the term is more associated with wholesaling.
How is that legal? Well, what happens is that you find a good piece of property, put it under contract at a price you agree on, you find a buyer, have the buyer close on the contract at the price you and the buyer agree on. Basically, you are only acting as the middleman who locates a property for a buyer. Now how is that illegal? It's just like charging for your professional fee for your services. Both the seller and the buyer need you. The seller needs you to find a buyer, and the buyer needs you to locate a piece of property he can purchase.
There are investors out there who cover up problems and misrepresent the property to be in good condition when it is not just to get that deal closed. That is fraud. As an investor, it is your duty to provide accurate information, both to your buyer and seller, to maintain credibility.
Rigging or falsifying documents to get the buyer approved is illegal.
Some investors might do some tweaking on the requirements to get the loans approved, which might be a common practice for the lower income buyers. All loans are based on facts investors provide, and if the some documents are falsified, even when the buyer is not qualified, it would cause loan defaults.
Share This Article
Rating: Not yet rated Next Article - Understanding the Foreclosure Crisis and Previous Article - Open House - Be The Best
About the Author
Real Estate Investing Is an excellent way to plan for the future!! Magnificent Real Estate Investing Tips Inside!! There is ALWAYS TONS of Money to be made in Real Estate
Comments
No comments posted.Add Comment
Popular Articles about: Real Estate
1: Renter's Rights in New York City2: The Future of the Housing Market
3: Where New York City Apartments Fall in the Global Economy
4: Tenerife Property On The Rise For 2008
5: Buying and Renting in Atlanta
6: Euro Set To Spur 2008 Malta Real Estate
7: More Foreign Buyers Increase Demand for New York Real Estate
8: Renting and Buying in Boston
9: How Can You Make Money Through Real Estate Investing
10: Is the Superfund Capable of Restoring Confidence?
11: Economic Development: Seven Clues to Successful Incubators
12: Foreclosure rescue and Foreclosure Options
13: Renting and Buying a Home in Dallas
14: Brief guide to repossession
15: Tips for selling your house
16: Investing in Real Estate
17: Investing in Florida Beach Real Estate
18: Important tips for buying property.
19: Shortage of 3 crore houses in the country.
20: Cash Buyers And Selling Your Property Fast
21: Sandra Apartments Cyprus
22: Trials and Tribulations in the New York City Rental Market
23: Why The Mortgage & Banking Industry’s Latest Attempt To Fix The Housing Debacle Will Fail
24: Problems In Rented Houses
25: Why Buy A Short Sale?
26: making real estate investing work-when you're married
27: Learn How A Website Can Help Your Real Estate Investing Business
28: Buying A Home, The Best Investment You Can Make
29: Buying Properties - 5 Most Common Mistakes of An Unprepared Buyer
30: How to Handle Disputes with Your New York City Landlord