I am very scared, and I don’t know what I should do!!! - Posted by Anisa Young
Posted by Anisa Young on June 19, 2000 at 22:38:52:
I have been into real estate for the past year. So far I have 4 properties. 1 Duplex, and 3 Single Family homes. So far I made $48,000 cash by flipping them. My sister is becoming an appraiser, and she has told me that what I am doing is illegal according to what she is learning in school, and I am facing Federal Jail time. I didn’t know what I was doing was illegal, I basicly learned everything I know from this web-page, and it worked. But now I am being told “FLIPPING” is illegal. I thought I was just finding real good deals. This is what I did…
First Duplex I got a mortgage for, we got it for $65,000. That wasn’t a flip. We use it as a rental property.
Second House was a Hud Home. I bought for $45,000. Sold it for $75,000. It didn’t need any repairs.
Third House was a house a Friend of mine bought for $40,000. And Sold it to me for $85,000 after adding 400 feet of square footage.
Now I bought this Third property with CASH… for only $16,000. We Fixed it. Now it’s worth $50,000. I have a buyer, we suppose to clost this week.
But now that she has told me these things, I don’t know what to do.
She says you can not flip a property for a large amount in a short amount of time, like the same day.
Someone please shed some light on what I should do about what I have already done.