Posted by John Merchant on January 11, 2003 at 10:52:24:
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Flipping…when is it ILLEGAL??? - Posted by Craig
Posted by Craig on January 10, 2003 at 18:01:59:
I am interested in buying low end properties with cash, rehabbing them and reselling them to other people who want to either owner occupy them or rent them out. Is this called flipping and is it LEGAL?
Please advise!
Re: Flipping… is not ILLEGAL !!! - Posted by JT-IN
Posted by JT-IN on January 11, 2003 at 04:14:09:
Craig:
Flipping property is NOT illegal. What you hear so much about today is, about deals where someone buys a property worth 25K, (and truely worth 25K), then find some unsuspecting party to sell it to for 65K, after arranging a bogus appraisal and financing, etc. An inside job all the way. This is illegal and referred to by the media and the gov’t as “Flipping”, which gives it the conotation of being illegal.
What is illegal is Fraud… and the above e.g. is fraud. The fact that it was a quick turn around of a property, known as Flipping, is not a crime. You can buy a property today, and sell it tomorrow w/o consequence, as long as there is no Fraud or misrepresentations involved.
You make a good buy today, and sell it tomorrow for a decent profit, we call that an Entreprenuer around here…
JT-IN
Re: Flipping… is not ILLEGAL !!! - Posted by Craig
Posted by Craig on January 11, 2003 at 20:11:06:
Thanks…Just wanted to make sure. I don’t look good in “Prison Clothes”. I want to keep my company on the up and up…no gray area! Any advice as to whether I should become a C-Corp, S-Corp or LLC?
Please advise!!