Are You Wholesaling and Flipping Houses Legally?

">purchase' contract, but are written in such a manner
You may be concerned that your potential new realthat you can easily pull out of the property sale
estate opportunity and whether you are really flippingwithout worrying about the homeowner suing you
houses legally. This process is legal when donefor not closing the deal. Some clauses are more like
properly!'weasel clauses' that allow the investor to pull out of
Yes, some scam artists have taken advantage ofa property sale for any reason on very little notice.
the wholesaling process to scam the homeownersThere are good reasons for inserting clauses in your
and their buyers. In addition, house flipping, has gavepurchase agreement. You may learn that the house
rise to many inexperienced investors making plentyneeds major repairs that would screw up your profit
of blunders and losing cash in their investments.margins or are looking for a specific kind of house for
You and I both know that you're not going to takea buyer and learn that the property doesn't fit.
advantage of the buyers or the sellers. In fact,When flipping houses legally with the homeowner let
wholesaling offers a win-win situation for everyonethem know that the purchase is contingent on your
involved in the deal. You just have to beware ofbeing able to find a buyer. You'll be surprised how
scams that can pop up. It's also a good idea to knowmany homeowners still want to sign that contract
what kinds of scams these con artists are alsowith you. Many homeowners are just glad that
running.someone is actually interested in buying their home
Why are People Wary of Wholesalers and Houseand are willing to wait a little while for you to find
Flippers?that buyer.
It was incredibly easy for a buyer to get duped orThere are Advantages to Flipping Houses Legally!
just be overly optimistic about purchasing real estateShow any wary homeowners and buyers that there
for way more than its worth when looking at aare plenty of benefits to wholesaling and flipping
house. Part and parcel of making a sale, especiallyhouses legally. The homeowner gets to unload a
when flipping houses legally is to make the buyer fallproperty that's costing them money, time and
in love with the house. A duped buyer is then stuckenergy. The buyer gets a cheap property that they
with a property they can't make a profit on or acan still sell for a profit of their own, live in or even
mortgage that they will have a hard time paying for.fix up and rent out. This is because you'll only be
One popular scam that con artists use on buyers ismarking up the price on that wholesale property a
to work with a crooked home appraiser who valueslittle bit. Plus, you can pay a little extra cash to any
a home for far more than it's true market value.person referring the homeowner or the deal to you,
Then the investor gets larger profits on a propertycreating an extra benefit for the homeowner's friend
and the buyer gets stuck with a loss of profits andor family.
even bad credit when they realize they can't pay forLastly, you will get to take home cash profits for
the home and make needed repairs or even sell thelittle work and even less money down on the
property for enough to cover the mortgage.property.
Weasel Clauses in Those ContractsYou have nothing to fear when wholesaling and
You'll also find some buyers and sellers who've beenflipping houses legally. The practice of selling real
burned by contracts with weasel clauses. These areestate is only as good or as bad as the investor
clauses that you can add to any 'agreement towhose selling that house.