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Welcome to The Prosperous Living Crusader - One of The Net's
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In publication since January 16, 1998, The Crusader explores
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WHAT YOU'LL FIND IN THIS WEEK'S CRUSADER
1. The Wealth Crusaders "FREE INFO" Series
2. Feature Article:
Misunderstood Investment Property "Flips"
3. Other Free Ezines We Think You Might Enjoy
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THE WEALTH CRUSADERS "FREE INFO" SERIES
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THIS WEEK'S FEATURE ARTICLE
Misunderstood Investment Property "Flips"
By Rich DuFour
Eventually you will hear it. It will come from your banker, real estate agent, or maybe your barber. "You can't do that, flipping is illegal". Weather you're a beginner or a seasoned real estate investor, at some point in your real estate investment dealings someone will try to pull out the dreaded "illegal flip" card on you.
Arm yourself with this knowledge and know the facts. What's Legal? What's illegal? Here is an excerpt from "Preforeclosure Profit".
Purchasing and reselling an investment property fast (or slow) with or without working on it is called a flip. Another term that has been used to describe this is "quick turning" a property. There have been some negatives associated with the word flip. In the past there have been illegal activities going on involving the resale of properties and they were commonly called flips by the media.
So what's an Illegal Flip?
Basically, an Illegal property flip involves some kind of fraud. Illegal flipping is any resale of a property in which the seller has twisted the facts around in order to sell it. This could be finding a buyer and then helping them 'fudge' on their loan documents to ensure approval. It could also be that the seller didn't disclose known problems with the property and went ahead with the sale anyway just to get rid of it quickly.
If you buy a house today you can sell it that same day or tomorrow or a year from now. Really, any resale of a property could be called a flip. As long as you let your conscience be your guide and keep it 'above board' you will have no worries. The advice of a good real estate attorney wouldn't hurt either.
I think the term 'speculating' fits best to describe what we do. There are 3 methods I've used to flip these properties:
1. Double Close (simultaneous buying and selling)
2. Assign the contract
3. Close on the property and sell shortly thereafter.
Flipping real estate property may have gotten a false image over the years. However, Investing in properties and reselling them quickly is not only very legal, it's very fun and extremely profitable! Make sure you understand the legal and ethical ways you can flip properties for incredible profits.
Rich DuFour has written a detailed step-by-step manual on flipping properties for huge profits. He has created a bare bones 'to the point' guide for fast profits in the specialized niche of foreclosure real estate investing. Visit his web site for more details at http://www.preforeclosureprofit.com/
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Until next time - God Bless!
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