Posted by ScottE on May 05, 2000 at 20:58:48:
Ed,
Hmmm… Apparently you need to listen to your own advice. Let’s see if I can remember it correctly when you said,
“Do you always presume that everyone knows what you meant, even though you said something different?”
Sound familiar? If not, you can check your response to my post below.
Obviously Shirley is new to the flipping side of RE investing, so how is she to know that when you say she can sell what she “own(s)” you meant that she was the owner of her interest and not the property itself?
Try to be clearer when you post. It is the responsible thing to do.
I was asked a flipping question but was stumped(long) - Posted by Shirley(OH)
Posted by Shirley(OH) on May 05, 2000 at 14:40:33:
I’m a newbie and I’ve been ravishing this site for a little over a year now and I’ve decided to start wholesaling for some much-needed cash then move on to notes or tax leins. I read and reread the Quick Flip Primer articles in the how-to section of this site. I called a couple of rehab investor’s and asked the appropriate questions(according to the article): price range, area, ability to close quickly, etc. One rehabber stated that he doesn’t do contract assignments but pays $200-300 finders fees(I don’t think so). Anyway, I spoke with a friend about what I wanted to do and she asked me the difference between a flipper and a real estate agent. I tried to explain but I’m not sure if I know the difference myself. Correct me if I’m wrong but I’m signing a contract(containing a weasel clause) with the buyer to purchase the home with the intention of assigning the contract to a rehabber for a slight markup allowing the rehabber room for a substantial profit. I don’t need a license for this in the State of Ohio do I?
Thanks,
Shirley
Thank you Stacy(AZ), Ed Copp(OH), eric and ScottE. nt - Posted by Shirley(OH)
Posted by Shirley(OH) on May 05, 2000 at 20:39:14:
nt.
Re: I was asked a flipping question but was stumped(long) - Posted by eric
Posted by eric on May 05, 2000 at 15:54:51:
I’m not an attorney. Always seek the advice of an attorney. Ok, so now that we’ve got that out of the way, let’s go ahead. What I have been told, by those in the know, is that the contract gives you an equitable interest in the property; an interest that you then can legally sell. That is what you are actually selling and marketing; a contract, not a house. This is why you do not need a license to “flip”, but you have to be careful - for instance, a lot of “flippers” will swear that a house is worth $x when rehabbed - this could be interpreted as an appraisal, which, at least in my state of Florida, you DO have to have a license for.
This is a fairly common question, and one which would be appropriate for a FAQ. I notice that this site doesn’t have one. May I humbly suggest such an item? There have been many outstanding updates to this site recently, and I think a FAQ would be a great addition. It would probably be have to be subdivided much as the newgroups now have been, in order to keep it comprehensible, otherwise, it might be too broad.
Re: I was asked a flipping question but was stumped(long) - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on May 05, 2000 at 15:00:01:
Shirley,
You are just fine as long as you are the seller.
“For another and for a fee” is what makes you an agent.
For yourself, as the seller makes you the seller. You do not need an agent to sell what you own…ED
Re: I was asked a flipping question but was stumped(long) - Posted by Stacy (AZ)
Posted by Stacy (AZ) on May 05, 2000 at 14:48:50:
You are signing the contract to buy the property, therefore you are a primary, not an agent. Agents working for others don’t sign contracts as buyers. You’re OK. Double-check the OH statutes just to be sure.
Stacy
Yeah, JP… - Posted by George(OH)
Posted by George(OH) on May 06, 2000 at 08:26:59:
At the least, it would probably reduce the number of redundant, newbile questions - such as the ones that are usually posted by ME! 
George(OH)
Re: I was asked a flipping question but was stumped(long) - Posted by ScottE
Posted by ScottE on May 05, 2000 at 15:45:23:
Just so you know, you don’t have to be the seller, Ed. If provided for in her contract with the seller, Shirley could assign her interest to another for consideration.
So that you’re not confused, Shirley would be the ASSIGNOR and the person she gave the assignment to would be the ASSIGNEE.
Re: I was asked a flipping question but was stumped(long) - Posted by ED COPP (OH)
Posted by ED COPP (OH) on May 05, 2000 at 15:57:55:
Scott,
When Shirley “assigns” her interest for “considerarion”, she would have then SOLD (her interest, not the property) for consideration (something of value). So she would be the seller of her interest for something of value (might even be taxable if she made a profit). I am correct here or the last guy that audited me at the IRS is wrong…ED