Flipping Houses
As Seen On
Menu:
There has been a lot written about flipping houses. Some say it is
great way to make money. Some say it is very difficult. Some even claim it is illegal.
So, just what is the truth?
First, let us begin by saying there are many different methods
of flipping real estate.
Most programs only show one, but "The Simple Man's Guide to Real Estate" details them all,
including "fix & flip", the double escrow, assigning, and various combinations.
Let's take care of the "illegal" claims, first. Flipping houses, if done the way it was meant to be done, is completely
legal. But it becomes illegal when unscrupulous investors, working with unscrupulous
appraisers or lenders, conspire to defraud either buyers or lenders. This is done when an investor gets
an appraiser or lender to over-value a property for the purpose of selling for a higher-than-market value,
or for the purposes of getting a bigger mortgage so the investor can pocket
more cash. For this reason, HUD issued a policy (not a law) that lenders who provide HUD/FHA or VA insured loans must include a "seasoning clause" in
their mortgages, which can make some forms of
flipping difficult by requiring a property be owned at least 12
months before it can be resold. Of course, there are exceptions, with the
most important one being that the clause can be waived as long as
the seller can show he is not selling for more than the legitimate market value. In short, the
flipping is not what is illegal - what is illegal is the fraud that can be perpetrated when crooked people abuse flipping.
We strongly urge our clients to always operate in an ethical fashion. Such fraud is not necessary.
Our program includes details on every legitimate method
of flipping houses, and if you use the strategies in our program, not only will you
be within the law, but you will profit immensely, and earn yourself a solid
reputation as a good person to do business with.
Now, about it being difficult. People like John T Reed claim that in order to flip real estate,
the investor
must first buy the property and only then find a buyer to resell to. Let's put
that falsehood to
rest right now - if you will look at these
online courthouse docs,
you will see that
you can, indeed, resell at a double escrow (both transactions occuring at the
same time), without ever having to finance a single
penny. Or, you may simply sell your purchase agreement to another investor prior to closing, so you never need to finance anything.
The reality is that there are a number of ways to flip real estate, and
our program covers them all, in detail. Some methods require financing -
others do not. Some methods do not require cash or credit. And
most methods are quite simple to do. If Mr. Reed were a true real estate investor
worthy of writing about such matters, he would know that.
That said (and proven), let us consider other claims that flipping real estate is very
difficult and
time-consuming. Since the most difficult part is finding a suitable property,
the rest of the
transaction consists of negotiating the deal (no different from any other
transaction), find a new buyer,
then wait until closing when the closing agent takes care of everything else.
Personally, we have never
found laying on the beach, waiting for a closing, to be all that
time-consuming or stressful.
Then there are the unfounded fears that for some unknown reason, your seller
and/or your buyer
will revolt at closing when they "discover" you are making a profit.
We can only assume that the investors who have this fear feel it is necessary
to keep it a secret that they are
an investor. We do not advocate that. Again, we stress ethical conduct. Simply
make sure your seller and your buyer are fully aware that you are an investor -
it is
nothing to be ashamed of! If they know this, they will obviously know, up
front, that
you must make a profit - you would not be in the deal, otherwise. At closing
there will
be no anger because they were not deceived. In over 30 years of doing this, we
have not seen one casewhere closing did not complete because of such problems, because the problems
never arose in the first place.
Yes, flipping real estate is a great way to make a lot of money in a short period of time.
And it, like any
other endeavor, can be stressful at times. It is not as easy as many "gurus" would
have you believe, but it is not all that difficult, either. The secret lies in
1) knowing
which properties lend themselves to flipping (we show you how to find them),
2) being honest and up front, and 3) using the right contracts, specially
designed for flipping, such as the ones in our contract software.
"The Simple Man's Guide to Real Estate" with its free mentoring can teach you #1, and our program includes software that takes care of #3.
And if you
are the kind of person deserving of success, #2 should not be a problem,
either - just be honest and forthright :o)
So, now you know that flipping houses is legal, relatively simple
and requires no cash or credit. So, what are you waiting for? Why not
Order our low-cost program today - or, at least
check it out more fully here. Even if you choose not to
order, you will find an incredible amount of free information in our site,
including free eBooks on restoring credit, ridding yourself of debt, reducing
taxes, saving money and so much more.
WEBMASTERS: Add valuable free content to your website - articles, free ebooks and more. Click here for details
Simple Man's Guide®is a registered trademark of IntelliBiz.
"Flipping Houses" copyright 2007