Saturday, June 7, 2008

Flipping Real Estate, Not Quite "nothing Down"

The present scenario of blistering real estate prices has made “flipping” the hottest rage. It basically involves buying an under priced property, refurbishing it and then selling it at market value to make a tidy profit. In places where property prices plummeted, flipping has been a major flop. However, it can still be a worthwhile option, provided you learn to identify the pitfalls. Otherwise, as someone famously proclaimed “It might not be as lucrative as you thought”. Flipping can be seen as the latest fad in the “nothing-down” movement. Nothing down movement basically means to get into a deal without any sort of initial investment. Of late, it has sort of developed into a tool to overcome objection. When real estate gurus are trying to sell information, they encounter the frequent “but I don’t have any money” response which they need to conquer if they are to make a sale. The bitter truth is that real estate investors generally do not use any “nothing down” techniques.

Not quite “nothing down”: The reality of flip business is quite the contrary to what you may have believed, flipping is all about cash. One cannot expect to get a mortgage as the business costs would be extremely high, considering the fact that you will own the property for a couple of days. Also, it's not possible that you make use of the buyer’s cash because you really don’t have a buyer until and unless you have closed the deal. The amount will usually be far greater than a wannabe could obtain and could mount to hundreds of dollars. Real flippers tend to lose money or earn little profit on certain deals, but its okay since they make it up, by gaining exceptional profits on other deals. However, a wannabe is actually trying to make a profit on every deal he/she makes because they only have that one deal at that time. Unfortunately, the flipping business does not allow itself to be prone to outcomes that are predictable.

Risks involved: A lot of real estate investment techniques tend to suspiciously sound like “brokerage”, sadly flipping is one of them. To do a brokerage deal, you are required to possess a broker’s license or be a salesman with a license, who is affiliated to a licensed broker. Normal regular people, think that they can get around the system by not calling themselves brokers. The law has however enlisted a doctrine called “substance over form” which means it’s not what you call yourself that matters, but what you do. If you do look like broker, you’ll be asked to produce the license and hold you to the standards of behavior of brokers, which is notably a fiduciary duty.

Flipping looks dangerously similar to getting a seller and buyer together just for the sake of commission. This activity in simple words can be termed as brokerage. The practice of flipping has reached hysterical propositions with popular real estate markets like South Florida, witnessing flipping contracts on condos even before they are built. Certain states like New Jersey prohibit “net listing”. It’s a practice in which the seller says “just get me certain amount of dollars and the rest you can keep whatever the amount higher than that”. Net listings came to be ethically questionable as brokers tend to recommend less than the market price to increase his take, again flipping notoriously resembles net listing.



Blogger ninest123 Ninest said...

ninest123 10.17
prada handbags, red bottom shoes, michael kors outlet store, tiffany jewelry, ray ban sunglasses, nike air max, louis vuitton outlet online, christian louboutin, cheap oakley sunglasses, nike free, replica watches, polo ralph lauren outlet, louis vuitton outlet, louis vuitton handbags, kate spade outlet online, michael kors handbags, ugg outlet, louis vuitton, tory burch outlet online, burberry outlet online, michael kors outlet online, nike air max, christian louboutin outlet, cheap ugg boots outlet, oakley sunglasses, prada outlet, polo ralph lauren, ray ban sunglasses, louis vuitton outlet, tiffany and co, gucci handbags, replica watches, longchamp outlet online, christian louboutin shoes, longchamp handbags, cheap ugg boots, oakley vault, burberry outlet online, ugg boots clearance, michael kors outlet online, ray ban outlet, nike outlet, chanel handbags, cheap oakley sunglasses, oakley sunglasses, jordan shoes, ugg australia

October 16, 2015 at 8:36:00 PM PDT  
Blogger ninest123 Ninest said...

michael kors outlet online, air jordan, north face pas cher, mulberry uk, guess pas cher, nike air max, burberry pas cher, longchamp, nike roshe, coach outlet, coach outlet, hollister uk, nike air force, true religion outlet, michael kors canada, air max, scarpe hogan, ray ban uk, nike free pas cher, nike blazer pas cher, lululemon outlet online, michael kors uk, nike air max, true religion outlet, air max pas cher, louboutin, lacoste pas cher, ralph lauren uk, hermes pas cher, nike roshe run, abercrombie and fitch, kate spade outlet, longchamp pas cher, ralph lauren pas cher, new balance pas cher, michael kors, coach purses, true religion, true religion jeans, hollister, converse pas cher, nike free, sac vanessa bruno, vans pas cher, north face, coach outlet store online, tn pas cher, timberland pas cher, oakley pas cher, ray ban pas cher

October 16, 2015 at 8:39:00 PM PDT  
Blogger ninest123 Ninest said...

nike roshe, nike air huarache, baseball bats, p90x workout, ferragamo shoes, asics shoes, louboutin, vans outlet, herve leger, valentino shoes, nike air max, babyliss, new balance outlet, insanity workout, chi flat iron, nfl jerseys, ray ban, air max, abercrombie and fitch, giuseppe zanotti, hollister, mont blanc pens, oakley, converse, vans, longchamp, beats headphones, ralph lauren, north face jackets, reebok shoes, north face jackets, abercrombie, bottega veneta, jimmy choo shoes, iphone case, birkin bag, soccer jerseys, lululemon outlet, ghd, hollister clothing store, instyler ionic styler, converse shoes, nike trainers, celine handbags, mac cosmetics, wedding dresses, gucci, timberland boots, mcm handbags, soccer shoes, michael kors outlet, longchamp outlet

October 16, 2015 at 8:41:00 PM PDT  
Blogger ninest123 Ninest said...

michael kors handbags, ugg, moncler, montre femme, canada goose, sac louis vuitton, pandora uk, wedding dress, louis vuitton, swarovski uk, marc jacobs handbags, louis vuitton canada, moncler outlet, pandora charms, canada goose outlet, coach outlet, michael kors outlet, moncler, links of london uk, canada goose pas cher, uggs canada, louis vuitton pas cher, moncler, moncler, michael kors outlet online, swarovski jewelry, juicy couture, moncler, hollister canada, supra shoes, louis vuitton uk, canada goose outlet, moncler outlet, moncler, ugg boots, barbour jackets, doke gabbana outlet, pandora jewelry, canada goose, canada goose outlet, canada goose, ugg soldes, canada goose, thomas sabo uk, karen millen, sac lancel, replica watches, ugg, juicy couture outlet, barbour, toms outlet, pandora jewelry
ninest123 10.17

October 16, 2015 at 8:48:00 PM PDT  
Blogger Zheng junxai5 said...

louis vuitton bags
adidas running shoes
louis vuitton outlet
copy watches
gucci belts
retro 11
louis vuitton handbags
michael kors outlet online
kate spade handbags
jordan 3s
cheap ray ban sunglasses
longchamp le pliage
louboutin femme
lebron 12
cheap jordans
cheap rolex watches
longchamp handbags
louis vuitton
ray ban sunglasses outlet
oakley sunglasses
ghd hair straighteners
true religion outlet
nike air max uk
true religion jeans
oakley sunglasses
ray ban
michael kors outlet online
kate spade
ray bans
coach outlet
air jordan 4
coach outlet online
ralph lauren outlet
michael kors outlet
cheap ray ban sunglasses
beats by dr dre
louis vuitton
coach factory outlet
louis vuitton outlet

May 6, 2016 at 6:31:00 PM PDT  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home