Maryland AG warns against "flippers"
I ran across the following link in the State of Maryland's web site. It's a brochure put out by the state's Attorney General warning homebuyers against buying from "flippers".
http://www.oag.state.md.us/Consumer/flipbrochure.pdf
Any thoughts?
Alex
[addsig]
Thank you for the link, very interesting warning.
As long as you are not doing anything illegal that caused the word "Flip" to be a bad (4 - letter) word especially in the governments eyes, then it shouldn't be a problem.
Of course the part about the deed, not being in your name as the seller, may pose a problem such as in a L/O purchase.
As long as you get the deed when you purchase the property, then everything should be OK.
Best of luck,
John (LV)
This is merely a brochure that educates the home buyer against the "flipping scams" of the late 80's and early 90's. These scams are why the term "flipping" has such a bad reputation, and also why alot of lenders won't loan money against a property that the seller hasn't owned for at least a year.
As ethical investors, we don't intend to mislead or lie to our customers (the buyer). The buyer should get an appraisal and home inspection, and you, as seller, should sign a disclosure statement for the property. The business of buying low and selling for retail or wholesale is still not illegal. This brochure is talking about buying low and selling for inflated values.
Roger
That's also why we use the term wholesaling instead of flipping. If you check out the "FAQ" link at the top of the page, then you will see a link for "Wholesaling FAQs." Wholesaling can be done in a number of ways. As long as you aren't scamming the buyer out of their money, then you should be fine.
Tanya
Deal is we need to start ratting on the people that are doing flips when we see them. I suggest this industry wide. The govts definition of a flip by the way is much different from the investor. And believe me Lenders have no idea what a flip is they are out there some where on mars. They think a flip is something bought right away and sold quickly but the FBI has laid down the criteria and its much much different than that. It doesnt even resemble buying and selling at FMV. I dont post what the FBI considers a flip. Why because some moron will read it and do it. So your on your own. But FYI. Lenders really dont have a clue as to what it is you would be suprised
I read that article by the way. Be very carefull of this. Theres nothing wrong getting a little more for your property and working hard for qualifying them. BEWARE of consumerism. Ronald Regan hated this it produces 2mill dollar judgements for some knit wit that pours hot coffee from Mcdonlads on there lap. One more word the Realtors are said to be the most powerfull lobby in washington. Watch out for them. All said you know the difference bettween making a little more on your propertys and whats out of bounds