f the loans are insured by the Federal Housing Authority (FHA), a government authority, which has now cracked down on the scheme and many of those involved now face the long arm of the law!.

If you read a media article, or hear a real estate agent or mortgage broker claim flipping is illegal you know they are wrong and you need to look furthe

As a property investor it's important to keep up with trends and news, but you also need to be able to separate fact from fiction! One of the biggest false stories in the media recently has been claims that double closings are illegal. They are not.

This misinformation has arisen from a number of indictments on what the media has described as "property flipping scams" which is totally different to double closings. Under the double closing system, the funds from the second closing are used to pay out the first closing.

An escrow system is used so the agent, or middleman, can trade the property and make a profit without using their own funds.. It is a legal, ethical and profitable process which investors have used for a century or more to create wealth.

You've probably read about what has been referred to in the media as illegal property flipping schemes whereby some people purchase inexpensive, poorly maintained properties , then carry out poor renovations and resell the property to na?ve purchasers at ridiculously high prices, way above market value.

Generally it isn't the sale that is illegal, but the loan process as all those in the lending chain conspire to submit illegal loan applications in conjunction with a false appraisal. As a result, buyers end up with an over priced house and a loan they can't repay.

Unfortunately for the scammers, a lot of the loans are insured by the Federal Housing Authority (FHA), a government authority, which has now cracked down on the scheme and many of those involved now face the long arm of the law!.

If you read a media article, or hear a real estate agent or mortgage broker claim flipping is illegal you know they are wrong and you need to look further

"property flipping scams" which is totally different to double closings. Under the double closing system, the funds from the second closing are used to pay out the first closing.

An escrow system is used so the agent, or middleman, can trade the property and make a profit without using their own funds.. It is a legal, ethical and profitable process which investors have used for a century or more to create wealth.

You've probably read about what has been referred to in the media as illegal property flipping schemes whereby some people purchase inexpensive, poorly maintained properties , then carry out poor renovations and resell the property to na?ve purchasers at ridiculously high prices, way above market value.

Generally it isn't the sale that is illegal, but the loan process as all those in the lending chain conspire to submit illegal loan applications in conjunction with a false appraisal. As a result, buyers end up with an over priced house and a loan they can't repay.

Unfortunately for the scammers, a lot of the loans are insured by the Federal Housing Authority (FHA), a government authority, which has now cracked down on the scheme and many of those involved now face the long arm of the law!.

If you read a media article, or hear a real estate agent or mortgage broker claim flipping is illegal you know they are wrong and you need to look furthe

rocess which investors have used for a century or more to create wealth.

You've probably read about what has been referred to in the media as illegal property flipping schemes whereby some people purchase inexpensive, poorly maintained properties , then carry out poor renovations and resell the property to na?ve purchasers at ridiculously high prices, way above market value.

Generally it isn't the sale that is illegal, but the loan process as all those in the lending chain conspire to submit illegal loan applications in conjunction with a false appraisal. As a result, buyers end up with an over priced house and a loan they can't repay.

Unfortunately for the scammers, a lot of the loans are insured by the Federal Housing Authority (FHA), a government authority, which has now cracked down on the scheme and many of those involved now face the long arm of the law!.

If you read a media article, or hear a real estate agent or mortgage broker claim flipping is illegal you know they are wrong and you need to look furthe

h prices, way above market value.

Generally it isn't the sale that is illegal, but the loan process as all those in the lending chain conspire to submit illegal loan applications in conjunction with a false appraisal. As a result, buyers end up with an over priced house and a loan they can't repay.

Unfortunately for the scammers, a lot of the loans are insured by the Federal Housing Authority (FHA), a government authority, which has now cracked down on the scheme and many of those involved now face the long arm of the law!.

If you read a media article, or hear a real estate agent or mortgage broker claim flipping is illegal you know they are wrong and you need to look furthe

f the loans are insured by the Federal Housing Authority (FHA), a government authority, which has now cracked down on the scheme and many of those involved now face the long arm of the law!.

If you read a media article, or hear a real estate agent or mortgage broker claim flipping is illegal you know they are wrong and you need to look further for up to the minute, well informed comment.

The controversy has had some affect on the industry with some title and escrow companies refusing to do double closings. Those that do continue with the practice quite rightly are well aware of the potential for fraud.

As a property investor it's up to you to remain in control of your deals, stay ahead of the process and anticipate issues that can affect the close, particularly if you are buying and reselling a property quickly using a double close.

Be aware that some financial institutions have implemented a "seasoning" process on the vendor's property. This means that if the seller hasn't owned the property for six month or more the financial institution will treat the proposal as suspect and reject the buyers application to borrow money.

This will leave you in big trouble if you purchased the property cheaply and are selling it on in a hurry for a profit. Before signing the contract make sure the buyer, their agent, and the conveyancing lawyer are all aware there could be a seasoning issue.

Better still, if you are really in control of the whole process you will be able to steer the buyer to a lender who is familiar with double closing and will ensure it is a smooth process. Remember, seasoning is just an underwriting suggestion, it isn't a law which has to be enforced.

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