subject: What Is Flipping Houses? [print this page] Flipping houses is when you purchase a property with the intention of reselling it very quickly. There are right ways to flip properties as well as wrong ways. Be sure that if you decide to flip house you do it right so you dont have to worry about going to Club FED. If you ever decide that flipping houses if for you then you will need to know a little about it so you wont get in trouble.
The main part of quick turning properties the right way you need to remain honest and ethical because there are going to be people that count on you. Buyers always want to believe that they are getting a good deal and that is why it is easy to mislead them, so dont. The first way you can mislead a buyer is by telling them problems that you repaired but really didnt or repairs that are half done to save some money. The worst thing that will happen is your buyer will realize that they bought a property that isnt as promised during the buyers remorse period. That is when they look for all kinds of ways to reverse the transaction. So be sure you give them exactly what you promised.
Also keep a record of any repairs that you have made and if you used a serviceman, have their contact information and receipts on hand as well. You never know when you will have to prove that you did everything right.
If you decide to work without a real estate agent and you find a buyer for your property, its ok to get a little information from them to make sure they can afford the house, but dont offer them any advice that can cause them to lie on their loan documents. That is a federal crime and is the quickest way to land you in jail.
Last but not least, dont over inflate your deal so you can make a profit. No one wants to lose money, not even the buyer so if they feel like they paid too much for a property. They will go through every channel they possibly can to get recourse if you tried to make a fast buck off of them. So if your property wont appraise for the price you are selling it for then you need to hold on to it until you can get the value you want or simply pay to unload it.
