Are You Wholesaling And Flipping Houses Legally_


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Are You Wholesaling And Flipping Houses Legally_

  1. 1. Are You Wholesaling And Flipping Houses Legally?You may be concerned that your potential new real estate opportunity and whether you are reallyflipping houses legally. This process is legal when done properly!Yes, some scam artists have taken advantage of the wholesaling process to scam the homeownersand their buyers. In addition, house flipping, has gave rise to many inexperienced investors makingplenty of blunders and losing cash in their investments.You and I both know that youre not going to take advantage of the buyers or the sellers. In fact,wholesaling offers a win-win situation for everyone involved in the deal. You just have to beware ofscams that can pop up. Its also a good idea to know what kinds of scams these con artists are alsorunning.Why are People Wary of Wholesalers and House Flippers?It was incredibly easy for a buyer to get duped or just be overly optimistic about purchasing realestate for way more than its worth when looking at a house. Part and parcel of making a sale,especially when flipping houses legally is to make the buyer fall in love with the house. A duped buyeris then stuck with a property they cant make a profit on or a mortgage that they will have a hard timepaying for.One popular scam that con artists use on buyers is to work with a crooked home appraiser whovalues a home for far more than its true market value. Then the investor gets larger profits on aproperty and the buyer gets stuck with a loss of profits and even bad credit when they realize theycant pay for the home and make needed repairs or even sell the property for enough to cover themortgage.Weasel Clauses in Those ContractsYoull also find some buyers and sellers whove been burned by contracts with weasel clauses. Theseare clauses that you can add to any agreement to purchase contract, but are written in such amanner that you can easily pull out of the property sale without worrying about the homeowner suingyou for not closing the deal. Some clauses are more like weasel clauses that allow the investor topull out of a property sale for any reason on very little notice.There are good reasons for inserting clauses in your purchase agreement. You may learn that thehouse needs major repairs that would screw up your profit margins or are looking for a specific kind ofhouse for a buyer and learn that the property doesnt fit.When flipping houses legally with the homeowner let them know that the purchase is contingent onyour being able to find a buyer. Youll be surprised how many homeowners still want to sign thatcontract with you. Many homeowners are just glad that someone is actually interested in buying theirhome and are willing to wait a little while for you to find that buyer.There are Advantages to Flipping Houses Legally!Show any wary homeowners and buyers that there are plenty of benefits to wholesaling and flippinghouses legally. The homeowner gets to unload a property thats costing them money, time andenergy. The buyer gets a cheap property that they can still sell for a profit of their own, live in or even
  2. 2. fix up and rent out. This is because youll only be marking up the price on that wholesale property alittle bit. Plus, you can pay a little extra cash to any person referring the homeowner or the deal toyou, creating an extra benefit for the homeowners friend or family.Lastly, you will get to take home cash profits for little work and even less money down on theproperty.You have nothing to fear when wholesaling and flipping houses legally. The practice of selling realestate is only as good or as bad as the investor whose selling that house.real estate burbank