Posted by yshNJ on June 27, 2003 at 11:25:22:
Hi Bill,
Remind me to argue with you next time and lets see if I can get anything for free!
I admire your writing.
“illegal flipping” - read this! - Posted by Bronchick
Posted by Bronchick on June 25, 2003 at 16:00:53:
If you didn’t understand “illegal flipping” vs. “legal flipping”, read this article:
That article explains why so many people are under the mistaken presumption that flipping properties illegal.
Re: “illegal flipping” - read this! - Posted by RichV(FL)
Posted by RichV(FL) on June 25, 2003 at 17:09:52:
Bill,
I have been following the Mortgage Fraud articles on Inman myself.
These scam artists out there ruin it for the investor who simply wants to buy properties well under value and sell at a higher price.
I would certianly not consider that illegal.
Just some thoughts…
RichV(FL)
Re: “illegal flipping” - read this! - Posted by Bryan-SactoCA
Posted by Bryan-SactoCA on June 25, 2003 at 19:39:42:
The problem is that the very act of buying under value and selling at a higher price is considered illegal, from what I read.
You DON’T READ! - Posted by William Bronchick
Posted by William Bronchick on June 25, 2003 at 21:15:40:
That’s not what the article said! It said selling it for MORE THAN IT IS WORTH combined with BOGUS ARPRAISALS.
In fact, there isn’t ANY article that ever said that buying under value and selling for a higher value is illegal. It’s exactly this misunderstanding that leads to people having false ideas about flipping.
Re: - Posted by hr_va
Posted by hr_va on June 25, 2003 at 21:04:38:
Therefore wholesaling would be considered illegal. I will be dumbfounded if flipping becomes a crime. As long as the investor is not colluding with brokers and appraisers, whom is being hard in these deals?
Re: “illegal flipping” - read this! - Posted by Eric(MI)
Posted by Eric(MI) on June 25, 2003 at 20:56:02:
It is general comments like those you just said that causes this whole uncertianty. The act of buying low and selling high is NOT illegal.
QOUTE FROM ARTICE:
"Property flipping relies on collusive relationships between mortgage brokers, real estate appraisers and settlement agents.
Inflated property appraisals are essential to most property flipping schemes, enabling crooks to buy cheap and make back two or three times their investment."
You’re right, I’m wrong… - Posted by Bryan-SactoCA
Posted by Bryan-SactoCA on June 25, 2003 at 21:46:45:
Property flipping relies on collusive relationships between mortgage brokers, real estate appraisers and settlement agents.
Inflated property appraisals are essential to most property flipping schemes, enabling crooks to buy cheap and make back two or three times their investment.
So the “flipper” buys a house at close to FMV, gets a fake appraisal for 3x that, then sells it at the inflated price to the “sucker”, right? And regular flipping is buying for far less than FMV from a motivated seller than selling to a rehabber for your price + a few grand as a finders fee, from what I gather from CRE articles.
Re: auction of Real Estate - Posted by Randy (SD)
Posted by Randy (SD) on May 09, 2005 at 08:19:46:
Look in the phone book for auctioneers, you don’t want to do this yourself. You want to choose an auctioneer who has a good reputation, I have been to many auctions at auction pavilions, estate auctions (at the property site) and real estate auctions. In a typical estate/real estate auction first they auction off the contents and personal property then the real estate. If it’s just a real estate auction they will typically allow “viewing” 1-2 days prior to the auction to allow prospective bidders time to perform due diligence, the winning bidder must present a non refundable deposit (typically around $5000) at the conclusion of the auction the balance in certified funds in about a week.
Free book for you! - Posted by William Bronchick
Posted by William Bronchick on June 25, 2003 at 21:57:44:
You’ve been a good sport here, so I think you’ve earned a free copy of my “Flipping Properties” book! It explains legal (and illegal) flipping, too!
Email me with your address.