Not even close - Posted by John Behle
Posted by John Behle on May 15, 2000 at 22:36:27:
Your real estate agent is very in-adequately trained - to say the least.
Blockbusting is illegal and has nothing to do with flipping properties. It is as described below - using discrimination to lower property values.
There are laws related to inflating property values fraudulently through “flipping”. There is nothing illegal about buying a property cheaply and selling it at market. Nor are there laws prohibiting a knowledgable buyer from paying more than market if they want.
It only becomes illegal when there is mis-representation as to property values, loan fraud or artificial inflation. For example, there has been a great deal of artificial inflation through flipping to straw buyers in the New York area in the past. The building gets sold between associated people and companies over and over at higher prices to inflate values. Many times the building would then be torched.
“Flipping” in the way it is talked about here in this forum and “flipping” as lenders, news media and etc. understand it are not the same. Finding a bargain and selling it at or below market or even for a little bit of a premium by offering easy terms IS legal and always will be in a free country.
I’ve been an agent and broker for 22 years and teach courses in real estate law for our state.