Illegal FlippingIn Most Cases Illegal Flipping is "Loan Fraud" Flipping is Legal. Buying Low and Selling High is Legal and Always Has Been.  A illegal flip is not what you may think. When you really take a look at flipping the real problem is real estate Loan Fraud based on phony appraisals and soft money.
Unlawful flipping is the new real estate buzz word for the news media. Every other day you hear a news anchor flapping their lips about Illegal Real Estate Flips.
The truth is, all of the real estate flips that caused problems were really based on real estate Mortgage Loan Fraud and Pumped-Up Home Values By Dishonest Appraisers. Flipping Real Estate is Nothing More Than Buying Low and Selling High For a Profit.
In our capitalistic business society flipping takes place ever day: If you are into illegal real estate deals be sure and sign-up for the following course because you may need it sooner than you think. Jurisdictionary People buy and sell stocks and bonds – that’s legal. People buy and sell cars and trucks – that’s legal. Antique dealers buy and sell antiques and art – that’s legal. What the big stink is all about is there have been hundreds maybe thousands of crooks that would buy cheap real estate in low end neighborhoods and do shoddy rehab.  Then hire a dishonest appraiser to inflate the home value then have their shady mortgage broker make a loan to a straw buyer at the inflated price. This has nothing to do with illegal flipping. This is all about Loan Fraud. Next they would pocket the money and resell the property to another flaky buyer with a new appraisal and a new loan for more money and move the idiot into the house and let the property foreclose.
Sometimes the crooks would refinance the same property 2 or three times before they would find a straw buyer to dump the property on. All of The Above is "Mortgage Loan Fraud" When all the real estate lenders were busy getting rich selling 100% Stated Income and Pay Option Arm Loans to people that could not afford the loans they never bothered to investigate questionable real estate borrowers.
 There were ten's of thousands of loans made to straw borrowers for hundreds of millions of dollars that were totally fraudulent. Most "Illegal Flipping" occurred because the Greedy Lenders were willing to overlook questionable real estate loans that were based on inflated appraisals and originated by dishonest mortgage loan brokers. Besides the loans were being sold to Fannie Mae and Freddie Mac with no recourse. ** NEWS ALERT** May 6, 2010 (Bloomberg) - Freddie Mac, the mortgage company operating under U.S. conservator-ship, fell 8 percent in New York trading after requesting $10.6 billion more in Treasury Department aid while reporting a first-quarter loss. Fraudulent real estate loans involve phony appraisals from dishonest appraisers who took money under the table and greedy sellers that t wanted a quick buck.
Loan officers falsified loan applications so buyers would be approved, all of which is Mortgage Loan Fraud. Most of the transactions involved "Loan Fraud" NOT Illegal Flipping.  The sad part of this scenario is that Greedy Mortgage Lenders and Wall Street Bankers allow this fraud to happen because they were making Billions of dollars every month selling real estate securities backed with sub-prime stated income 100% real estate loans. And the mortgage securities were insured by "AGI" the Greedy Insurance Company the U.S. Government bailed out with $140 Billion in tax payer’s money. Somebody must take the blame so let's blame it on Illegal Real Estate Flipping. TV, Cable News and Newspapers have incorrectly reported "Loan Fraud" as Illegal Flipping... And the mortgage lenders that are still in business like it that way because they do not want any additional negative publicity. Fraudulent real estate flipping schemes require a team of crooks working together something like this: • Generally there is a dishonest the real estate investor who buys or controls the property. • Then the investor brings in his friendly real estate appraiser to phony-up the market value of the property.
• Next the real estate mortgage loan broker agrees to make a loan based on the inflated market value of the property. • Then they would find a flaky buyer that just got his credit repaired and offer the property to the buyer with 100% financing using a Pay Option Arm Loan with a start rate of 3% for six months.
• Next the escrow is closed by someone that is in the click with no questions asked. Everyone with the exception of the buyer is in on the loan fraud, falsification of loan documents and inflated real estate appraisal.
It usually takes several unscrupulous parties to consummate an illegal transaction involving Loan Fraud.
Moral of the story flipping real estate is perfectly legal so long as there is no loan fraud involved. Illegal flipping is really Mortgage Loan Fraud. Flipping is only illegal when loan fraud is involved. Otherwise, buying low and selling high is perfectly legal and it is ethical. Now that is out of the way if you want to make some money flipping real estate check out the following links: Flipping real estate can produce some nice profits just make sure to stay on the right side of the fence. The key to making big money is learning how to find Anxious Sellers and do your own deal without using a Realtor. If you think you need Realtors then use Realtors Buyers/Agents to buy or sell property.
During my tenure as a Realtor, Broker, Real Estate Agent, Property Manager and Mortgage Broker I have learned many ways to do business. One thing I learned years ago is it’s not what you ask for when you write up a purchase agreement its how you ask.
We will be publishing a paper on all the ways to write real estate purchase agreements and how to owner finance real estate purchases. But for now there is much work to be done on this site and updates that take time. Flipping is buying low and selling high, it happens every day in the stock market and you do not hear about illegal stock sales, you hear about crooked stock brokers. Loan fraud is the problem, there is no such thing as illegal flipping.
LOW RISK REAL ESTATE FLIPPING: Keep in mind legal issues can remove all your profit in a hart beat. Protect yourself and watch the videos on this site.Go to Jurisdictionary and watch the FREE Instructional Videos. Left Side Half Way Down...
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