
Flopping
Real estate markets are somewhat inefficient. However, the imperfect market also allows room for scams. Meet the newest one: ?flopping.?
?
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.
?
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.
?
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.
?
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 SoftwareYou might also want to read:
- Mortgage Guide ? Why Hire a Real Estate Broker The first person you consult about buying a home is a real estate agent or broker. Although real estate brokers provide helpful advice on many aspects of home buying, they......
- Mortgage Guide ? Tips on Negotiating Mortgage Settlement Costs Customs and practices during settlement often vary regionally, with buyers and sellers free to negotiate which party pays certain fees. In slow-moving real estate markets, for example, the seller may......
- Points Paid by the Seller One point is 1% of a mortgage, and can usually lower a mortgage interest by .25%. A point is interest that you have pre-paid in order to ?buy down? the......
- Charge Your Own Mortgage Interest | Installment Sale Capital Gains Tax Planning One method of seller financing is to hold a note for many years. For example, you sell a property to a buyer who has no down payment. He takes an......
Source: http://www.trexglobal.com/property-management/newsletter/flopping-%E2%80%93-latest-real-estate-scam
premier league fixtures tupac shakur uni keri hilson hammer ryan reynolds mayo clinic
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.