Posted by J on April 03, 2000 at 17:22:37:
I think sometime writters should watch what they say.
FIVE ARRESTED for flipping real estate in Baltimore! - Posted by David
Posted by David on April 01, 2000 at 20:43:25:
All,
Interesting story about people in Baltimore being arrested for flipping real estate. It seems that the main problem is that false appraisels were used to accomplish this.
The fraud is the part that gets one in trouble not the flipping, but flipping is getting a bad name and just watch there will be restrictive legislation that hurt the honest as well as the less than honest. Here’s the link.
David
Another one - Posted by hkCA
Posted by hkCA on April 05, 2000 at 12:40:55:
Subject: Just another case of irresponsible reporting
Date: Wed, 05 Apr 2000 10:19:12 -0700
From: publish@cricorp.com
To: news@inman.com
Editor,
Your article at Electronics, Cars, Fashion, Collectibles & More | eBay states:
“Property flipping, which is illegal, involves buying property and reselling it at inflated prices based on
fraudulent appraisal values. Large loans are made based on the inflated appraisals and sellers and those participating in the scam line their pockets with the extra cash.”
I don’t know where you get your facts, but “property flipping” is not illegal. It is done every day and just like any other activity, it can be abused. “Flipping” usually involves buying distressed properties such
as foreclosures and quickly reselling for market value. There is nothing illegal about it.
Reporting what you think you know without getting educated on what it is you’re talking about does a disservice to those who don’t fully understand the term, “property flipping.”
Knowing, of course, that you are a responsible company and that you, as editor, are equally responsible to the public for providing accurate information, I’ll be watching with eager anticipation for the posting of your retraction or correction of the facts.
Letter to editor sent…NEXT (nt) - Posted by JohnAz
Posted by JohnAz on April 03, 2000 at 09:30:06:
NT
I sent this to the Editor… - Posted by David Alexander
Posted by David Alexander on April 02, 2000 at 20:37:12:
Flipping property is not in itself Illegal.
Any Person has the right to buy and sell a property whenever they wish.
No different than buying a bicycle and seller it later, whether that be a hour or a year.
When you make remarks of this nature it makes it bad for Real Estate Investors across the country to make a living and make money.
The bad of the transaction comes when people do things fraudulently, title companies, appraisal companies, and mortgage companies using phony figures to skew the transaction and inflate prices, etc.
The two things have no relation to each other.
If you found a rare coin today and took it to an appraiser and found it it was a collectable and worth $1000 you could immediately sell it and profit.
On the otherhand if you took the rare coin to an appraiser and said I need an appraisal for $1500 dollars so I can sell this coin for more thats fraud (and somehow rewarding them appropiately for it), dont confuse the two.
Cordially,
David Alexander
Re: FIVE ARRESTED for flipping real estate in Baltimore! - Posted by Tim in South Jersey
Posted by Tim in South Jersey on April 02, 2000 at 07:24:16:
I would suggest everyone on this list contact the editor of the news artical and inform him flipping is not illeagal as he states, but fraud is.
… and now for their correction … - Posted by hkCA
Posted by hkCA on April 05, 2000 at 13:40:14:
Here is the response I got to my complaint. Check out the correction. They outdid themselves.
Subject: RE: Just another case of irresponsible reporting
Date: Wed, 5 Apr 2000 10:56:29 -0700
From: “Editorial Team”
To: publish@cricorp.com
Thanks for your note. We have recently updated this story. Please check
The editors.
Inman News Features
1250 45th St. Suite 360
Emeryville, CA 94608
Email: news@inman.com
Phone: 510-658-9252
Fax: 510-658-9317
Re: I sent this to the Editor… - Posted by Greg in Dallas
Posted by Greg in Dallas on April 02, 2000 at 23:10:42:
Dear Sir or Madam,
Thank you for taking the time to point out the illegal activity going on with these
unscrupulous appraisers and unscrupulous mortgage brokers and title agents. There have
been many appraisers and investors in the past who’ve gone to prison for this exact same
thing.
You probably didn’t realize it but you called flipping illegal when you said, “Property
flipping, which is illegal, involves buying property and reselling it at inflated prices based
on fraudulent appraisal values.” Now that kind of flipping is illegal, but property flipping
done right is not illegal. You may want to work on your definition of Property Flipping:
the purchase and re-sale of a real estate, or a good or service for a higher price.
With that noted I must say that I found your article equally alarming that you would go so
far as to call flipping illegal.
If this is the case then every general contractor is a criminal because he is purchasing the
services of tradesmen and then reselling that service at a higher price to an end user. Are
you saying he should be indicted simply because he chose to do all the legwork and hire
all the needed people to get a job done for someone rather than getting paid for doing a
good coordinating job himself?
What about the new car dealership who takes your used car as a trade in and says that
he’s giving you $2000 worth of credit towards the purchase of your new car (but you
know he’s only giving you $50 worth of credit when he finishes off the paper work) and
then he turns around and sells your used vehicle at the auction or on his own used car lot
for double or sometimes triple and even quadruple what he gave you for your car. But
shouldn’t he be indicted for his efforts? He’s flipping vehicles isn’t he? I thought he was
doing you a service by taking your car off your hands and handling all the clean up and
prep work along with the sales and holding work needed to get top dollar for your used
car. Should he not be adequately compensated for his “hard days” work?? Or should
he be indicted??
Mr or Ms Editor, please post a correction to your, perhaps mistaken, remarks about
flipping real-estate or to put it another way the buying and selling of real estate for a
profit. Even though I haven’t flipped property doesn’t mean I should be forbidden from
flipping if I choose to.
Please let me know when you’ve posted your correction. I look forward to hearing from
you on this matter.
Thanks,
Greg
Nuff Said!! - Posted by Greg in Dallas
Posted by Greg in Dallas on April 02, 2000 at 22:41:59:
David,
I couldn’t have said it better!!
Re: FIVE ARRESTED for flipping real estate in Baltimore! - Posted by T Jent
Posted by T Jent on April 04, 2000 at 24:29:29:
I have a similar concern over a developing negative perception about the “predatory lending industry.” Although there are certainly reprehensible people who set out to defraud borrowers with false representation, I am beginning to hear rhetoric from some politicians that makes no distinction between fraudulent practices and mere high interest rates. They seem to equate all high interest rates as “gouging” and “unfair practices”. (Why are they unfair? Because some borrowers make foolish agreements they later regret). They would like (as politicians do) new laws to protect people from themselves. What really concerns me is that politicians and legislators will not realize the legitimate and valuable place occupied by the hard lending industry. We already have anti-fraud laws. I’m not a lender; rather, I just do not want my choices as a borrower limited because some people make poor choices.
Re: Thanks for the heads up. I sent a response to the editor.(nt) - Posted by chris
Posted by chris on April 02, 2000 at 11:10:05:
nt
I AGREE, THIS IS A MUST READ AND A MUST DO !! (nt) - Posted by Ben (NJ)
Posted by Ben (NJ) on April 02, 2000 at 10:08:30:
nt
Re: FIVE ARRESTED for flipping real estate in Baltimore! - Posted by Craig
Posted by Craig on April 04, 2000 at 12:36:16:
Be concerned, be very concerned. Most politicos don’t give a frank about what’s good for anything but their career. They have to get their constituents all riled up about something to make it appear as though they’re doing you the little guy a favor by passing another law that will help you the consumer not have to think about anything when you buy, or borrow in this case. Things like this make the beaurocracy bigger and bigger, restrict competition in the market place(pretty much to those backing the politico) and make it more difficult for new people to break into certain industries. Just follow the money trail and you’ll see why stuff like this happens. In the real estate and mortgage industry you can usually trace impending legislation to people like the National Association of Realtors, Mortgage Bankers Association, Brokers Association and the state associations for such.
Re: Ditto… - Posted by Warner(ATL)
Posted by Warner(ATL) on April 02, 2000 at 16:27:39:
The article starts off by saying that flipping is illegal. I just had to provide the editor with a little creative real estate investing education.
Re: I AGREE, THIS IS A MUST READ AND A MUST DO !! (nt) - Posted by NJDave
Posted by NJDave on April 02, 2000 at 12:12:00:
Subj: (no subject)
Date: 4/2/00 1:09:57 PM Eastern Daylight Time
From: NJSPOCH
To: news@inman.com
The act or process of “flipping” real estate is not in itself illegal. Must we now scrutinize your writers for the accuracy of their article’s content? I thought that’s what editors were for. Get on the ball, guys!
David M. Petrovich, MBA R/E a/k/a NJDave
Re: I AGREE, THIS IS A MUST READ AND A MUST DO !! (nt) - Posted by Joe
Posted by Joe on April 02, 2000 at 14:24:47:
I agree and sent a letter to the editor and I think we all should as well.