n the 21st century,
everyone knows the word Do you see the similarity with
"gay" refers to people that "gay?" One definition is upbeat
are homosexual, but back in the and accepted, while the other is
1950s, the meaning was contested. (currently) unacceptable and
The alternate definition was downright scary. The majority of
"full of joy and mirth." the world understands "flipping"
as an illegal activity, where a
Can you imagine the confusion? small minority are trying to
Tell one group of people that redefine it as a legitimate real
you're "gay" and they'll assume estate investment strategy.
you're happy. Tell another group
and they'll reach for a cross and The reason: good old Uncle Sam.
a can of gasoline. When the government talks about
flipping, they use the second
Right now, "flipping houses" definition. According to the
creates the same effect. It has Department of Housing and Urban
two definitions: Development, flipping occurs
when:
1) The process of *legally*
selling a property for a fast A recently acquired property is
profit, sometimes using little or resold for a considerable profit
none of your own money with an artificially inflated
value
2) The process of *illegally*
selling property for an Being closely related to the
artificially inflated value, government, attorneys,
often involving a group of accountants, and the press are
criminal appraisers, loan hanging on to that definition.
officers, and investors So, the next time you visit them,
don't be surprised if they "flip of flipping), allowing another
out" (pun intended) at your buyer to close on the property in
strategy. your place.
The exact opposite is true with Which definition will win? If
real estate investors. You can "flipping houses" follows the
buy a house and then "flip" it to etymology of "gay," the more
another investor for a small but acceptable definition will come
fast profit, allowing you to out ahead. Who knows? Maybe
reinvest your money and repeat they'll make a movie about it.
the process. You can also assign
contracts for a fee (another form
About the Author:
Jon Morrow is the owner of Real Estate... Answered, a web site that answers dozens of questions about flipping houses (http://www.realestateanswered.com/category/questions-answers/flipping/) for free. He also manages over $20 million of real estate investments, focusing on luxury homes and multimillion dollar transactions.
Source: www.isnare.com
