Real Estate Flipping: Not Gymnastics, But Lots of Investor Exercise
You have all heard the term before, I’m sure. Flipping is just real estate investment slang for the process of buying and selling a property quickly, with hopes of a healthy profit. Flipping is neither illegal nor unethical — it is simply business.
The idea that this process is illegal was born out of the media, whose reports have a tendency to become inflated in order to tell a more exciting story. And it is this: that flipping involves an attempt to deceptively inflate the market value of a property in order to turn a profit, to the extent even of falsifying documents and/or colluding with others to defraud a buyer. That is not flipping; that’s fraud, which is both illegal and unethical.
Now that we’ve covered the difference between flipping and fraud, we’ll press on, to more important matters.
In order to flip a property, you must first do your research. Search for the cheapest properties in the best neighborhoods. Find honest buyers who are eager to sell at a bargain price. You may need to anticipate minor repairs and/or cosmetics; it’s almost always a good idea to paint the interior, which is a quick and easy (and relatively cheap) way to brighten any room. read more…
