Learn how to avoid illegal property flipping and protect yourself as a buyer. Hire a property appraiser to determine the true value of the property and watch out for common signs of illegal flipping. Refuse to buy if the seller avoids questions about the property's condition or if the price seems inflated compared to similar properties in the area.

1. The Most Common
Indicators of Illegal
Property Flipping
Flipping
America
Today
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2. Next Page
Property flipping is popular but can be illegal if the property's condition and
value are misrepresented. This form of mortgage fraud has serious
consequences. Legal property flipping involves accurate property
disclosures. Selling a property at a higher price through flipping is legal, but
doing so quickly and at an inflated price is illegal. This article highlights
indicators of illegal property flipping, its consequences, and how to avoid it.

3. Illegal Property
Flipping: An
Overview
Next Page
Property flipping involves buying,
renovating, and reselling a property
for profit.
Illegal flipping occurs when a
property is bought below market
rate and quickly resold at an inflated
price.
Fraudulently evaluated properties
mislead buyers and can cause
financial distress.
Illegal flipping can lead to criminal
charges, penalties, and
imprisonment.

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What are The Common Indicators of
Illegal Flipping?
Misleading Documents: Sellers may
provide false or altered documents,
such as phony income statements,
to deceive investors.
Predatory Lending: Buyers may be
misled into high-interest loans they
can't afford, leading to financial
distress or foreclosure.

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False Evaluation: Sellers may
manipulate property evaluations to
inflate its worth, making it seem more
valuable than it actually is.
Concealment of Defects: Sellers may
hide significant property defects, such as
code violations or structural damage, to
increase its perceived value.
Flips With no Repairs or Improvements:
Properties may be resold multiple times
without significant repairs or
improvements, potentially indicating a
fraudulent scheme to inflate prices.

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Penalties for Illegal Flipping
Up to 30 years imprisonment and
a $1 million fine upon conviction.
Additional charges for unlawfully
obtaining money from banks.
Possible combination of
imprisonment and fines for
offenders.
Severe financial and legal
consequences for those found
guilty.

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Negative Consequences of
Illegal Flipping on Buyers
Financial Losses: Buyers may overpay for
properties inflated above market prices, leading
to significant financial losses.
Legal Issues: Illegal flipping may involve fraud or
illegitimate activities, exposing buyers to legal
issues and title complications.
Negative Impact on Community: Flipped
properties left unoccupied may attract
vandalism and crime, reducing the quality of life
for residents and eroding community trust.
Foreclosure Risk: Lack of disclosure about
property issues, such as damage or problems,
increases the risk of foreclosure and affects
property value and safety.

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What to do to Avoid
This Illegal Act?
Hire a property appraiser to determine the
property's true value and avoid overpaying.
Look out for signs indicating potential illegal
flipping:
The seller refuses to answer questions
about the property's condition and price.
The property is priced significantly
higher than similar properties in the
area.
The person handling the sale isn't the
owner or authorized representative.
The seller promises immediate property
use before completing the sale.
Promised repairs are not included in the
sales contract.

9. Thanks
Flipping America Today
lejoy@prpbay.com
+1 415-510-0127
https://www.fat.homes/
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