Flip (from the Dictionary of Real Estate Terms): purchase and immediate resale of property (within hours or days) at a quick profit.
Consider what often happens with illegal flipping.
A home is purchased by a group of illegal flippers. An appraiser is part of the group. Magically, the property gets a new appraisal on the basis of a suddenly higher valuation, and the property is sold to an innocent buyer.
The key to the process is the faked appraisal.
This is where a reputable appraiser comes in. We either are called upon by the lender to do a review of the appraisal or the buyer may hire an appraiser to find out all there is about the property. Some contractors buy and do quick updating and the property looks nice but is it permitted? Non-permitted work may affect future mortgages or home owners insurance. Contact the appraisers at www.socalappraisalserv.com to advise you on properties that you may be considering purchasing.
To read more about illegal flipping go to: http://www.appraisalscoop.com/
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