The Legality of House Flipping

[flip_it_fast]

I cannot tell you how many times I have heard or read someone saying that house flipping is illegal. That is just ridiculous. I think the reason some people have gotten that impression is because of all of the mortgage fraud cases that have come to light over the past couple of years. House flipping is completely legal, mortgage fraud is not.

When you Option a house and sell it, the end buyer is responsible for their own financing, no “fudging” on your part, and no possibility of fraud.

The Buyer agrees to pay a certain amount, and has a down payment and credit to match, and knows the deal. The haven’t been misled, and you haven’t helped anyone commit fraud.

When you “Flip” a house by selling it for retail price to a retail buyer, who works with a legitimate appraisaer and Mortgage Broker and gets their own financing, with no “funny stuff,” there’s nothing even slightly illegal or grey about it. It’s simple and easy, with no B.S.

As long as all parties involved have gone through the proper channels, there is nothing illegal about house flipping. It's a great way to make money if you know what you are doing.