Posted by Jimmy on September 09, 2007 at 07:17:03:
flipping properties is ok.
flipping contracts is another idea, entirely. if structured right, the assignment fee is not an illegal real estate commission.
but if you are trying to get paid by a seller by finding him a buyer, and you want the seller to hand over the compensation, you are in dangerous waters.
your escrow instructions can specify all kinds of perfectly legal payments to third parties (legal fees, title premiums, appraiser fees, and assignment fees).
Is flipping properties legal? - Posted by Brian Carter
Posted by Brian Carter on September 08, 2007 at 23:41:59:
I was watching TV one late night and saw the informercial for John Anderson and his Inverse Purchase method of purchasing real estate, however, after a little googling… I found some people saying that flipping properties is illegal unless you have a RE license. Some were even saying they took his course and made $10K plus as he mentions, but were sued later because there were not licensed agents. So, my question is, do you have to have a license to bring a motivated seller and a buyer together for a fee?
Thanks in advance for your time.
Brian Carter
Posted by Garrett on September 20, 2007 at 09:49:29:
Flipping a property you own (either you or your LLC is on title) is okay. Bringing a buyer and seller (a person other than you who is on title) together requires a real estate license.
Re: Is flipping properties legal? - Posted by Rich-CA
Posted by Rich-CA on September 09, 2007 at 21:50:08:
Flipping is buying a property, repairing a property, then selling a property. The buying and selling part are no different than for an owner occupant (except the dates are closer together). The repairs - well an owner can do pretty much what they want with their property. So the question is: why would any rational person claim this is illegal?