How flipping goes bad

You always seem to out do yourself with these posts. Being down here in FL I know of that scheme well. Thanks for looking out for us all.

Good info. Clearly to define what illegal flipping REALLY is. I know the info will answer alot of question new investors have on flipping. Legal or illegal? Thanks for the post.

As always Bill another good post.

Steve.

Bill YOUda man!

thanks & you know what , Just to tell something I had A RE Agent in FL that seemed strange & I'm the type I like to Learn & know whats going on So for some reason something told me to wait & see what the hell was going on with the Agent He wanted me to Buy the Homes Right then & there & I was like NO! cause i want more Detail Of what i'm getting into i'm not just jumping into something , Right after I told him to Provide me more Info , He fleed I never Heard from his ever & i'm like something just did not seem Normal about this RE Agent then the Normal RE Agents I've dealt with before he seems inpatient & kinda Creepy .......LOL .
& after then I never heard from him again .

So I'm like After reading this Post It brought more light on Maybe my six senses were telling me something wasn't right .

all I have to say is Luckly whatever He was trying to Pull I didn't Fall for it & Now It makes me Be more Careful Of how I Do Business & whom I do it with .

If thats your real name lol

Don't let us find out you being the ring leader of any upcoming stings

Playing Devils Advocate, other than doing these illegal things, no one on here can claim these guys didn't know what they were doing

I jokey joke......kind of

They all new what they were doing. We had a whole family here doing that with brand new houses. The guy was a builder for years and got greedy. They started using banks in Ca. They got over 52 million before they got caught and sent to jail.

Bill

thanks for another great post

Regards
Tom

Appreciate the info Bill, never would have thought of something like that so good to open my eyes to the criminal mind a bit more. Im always looking at houses in the S. Florida market so I will be more careful now and really listen to what others are saying. Sometimes it is not all cut and dry and you need to "read between the lines"

Jordan

Interesting post!

I don't remember reading that strategy in Deans book! lol

THAT IS FREAKIN "AWSOME"

thanks, Bill. and, of course, peace,

thanks, Bill. and, of course, peace,

oops

thanks Bill,

I didn' t know about the Sarasota scheme...

but I did know about some developer in Pensacola that was taking money from buyers in Cali with the promise of newly built homes, set up with Property Managers, Realtors, Lenders... the whole deal...but apparently the funds were not put in an escrow account, but in his instead, and then... poof! the developer was nowhere to be found, nor the money, nor the houses... nothing.

So, yes.. due dilligence...

Wishing everyone success,

valerie

Thank you Bill. You really do have GREAT post!

God Bless,
Jen

That was deeeeep!!!! A real eyeopener Thank you for that!!

Reminds me of something I read a while back: Why work so hard to make money illegally when you can do it right legally and get to keep it?

Mark K

Several years ago some one approached me about a real estate investment. I went and looked at the property and lissened to the plan of how it was supposed to work. It looked very fishy and a lot like the deals Bill outlined above. Needless to say I did not move on the "great Deal". Six months later I saw on the news the guy that was showing me the home getting hauled away in hadcuffs, and the news talking about a illegal real estate ring.

The first key for me in this market would be a broker that could find me a loan with no money down.
I remember when that was possible, but lately they are as rare as hen's teeth. Sorry about that comaparison it's an old local saying.
If anyone knows of one of these mythical creatures in Louisiana I would love to see it.

Thanks for sharing Bill! As usual, more great info. How they got away with it in this market is surprising.

Oh, great, here in CA, no wonder I can't get a loan out here! What banks was he using?

thanks for all that u share with us,here on the site to keep us on our toes and eyes open to the REI and wht everelse that try to slow us down,thanks again

if its done right

I did three closings this week. All flips. All from investors. All legal.

Like death and taxes, flipping will always be around and there will always be new ways to work around it. They recently had to change the law back to allow flipping because it was greatly hindering the housing market.

Flipping is a necessity in the RE market. Without it, this business will go further in the toilet.

Everyone on this site is a flipper whether they want to admit it or not. Embrace it and accept it, but just do it the right way and walk away if a fraud one comes your way.

Everybody on this site is striving for a flip. It's what we do. Just don't be in collusion with anybody to make a profit and you will be fine. Unfortunately, it is stories like the one above that makes people think flipping is a bad word. It's not. Perhaps a better word for what we do is arbitrage. Buying low and selling high. Making money on the spread between what we buy it for and what we sell it for. It's what stock market traders do. It's what commodity traders do. So NEVER feel bad about flipping.

Thank you for a great post and also for sharing with all of us