Tuesday, June 21, 2011

Flopping ? Latest Real Estate Scam

Flopping

Flopping

Real estate markets are somewhat inefficient. However, the imperfect market also allows room for scams. Meet the newest one: ?flopping.?

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As detailed by Lew Sichelman, a long-established real estate writer, flopping involves selling an asset at less than market price (to a friendly party, of course) and then reselling it to market.

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The property that is bought low and resold high generates a profit, which is split among the parties ? generally, the original seller and his non-arm?s-length buyer.

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The protectors against this kind of nonsense used to be real estate appraisers, who even in an inefficient market were seen as the guardians of value. A 10 percent price swing is fine, and hard to prove, but there were at least professionals who knew the submarkets well and could help zero in on that pricing.

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How can it harm you as a buyer?

To read more CLICK HERE

This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Flopping ? Latest Real Estate Scam is brought to you by SimplifyEm Pay Rent Online and Property Management Software

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Source: http://www.trexglobal.com/property-management/newsletter/flopping-%E2%80%93-latest-real-estate-scam

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