Property 'Flipping

[WebBoard]

From: Kylie S


Hi,

I was reading another forum where the term Property Flipping was used.

Does anyone know what this refers to? Is it only applicable in the US?

Thanks
Kylie

 

[WebBoard]

Reply: 1
From: The Wife


Hi Kylie,

If we are talking about the same thing here, a "flip" is when you PASS a deal onto another person for a small fee.

Its different from 'onselling' a property, where you purchase, and then sell quickly after, otherwise known as a "quick-turn-around".


In a flip, you never own the property or put any money towards it at all.


Traditional Australian flips usually consist of a single person, locating several good deals, purchasing some for themselves, and passing a couple on to "flipees" for a fee, thereby creating a "flip"


Its a double bonus for the "flipper", as they can acquire property cheaply, by buying in bulk, and they receive a small fee from their flippee, so it can be used as a quick cash raiser.

This is how I define flipping, and how I practise it, I would like to hear from anybody else if they are doing it another way, so I can tell you you're doing it wrong, or you should be using a different term )

 

[WebBoard]

Reply: 2
From: Kylie S


Thanks TW

Can you tell me a little about your book.

Where is it available?

Ta Kylie

 

[WebBoard]

Reply: 2.1
From: The Wife


Hi Kylie,

I hate to advertise on this forum, the book is $21.95, and available through me. I noticed you dont have an email address showing, if you want, you can email me at [email protected] for further info,

Cheers!

 

[WebBoard]

 

[Ross Sondergeld]

Question for FLIPPERS...

Reply: 1.1
From: Ross Sondergeld


Hi everyone,


>Traditional Australian flips usually consist of a single person, >locating
>several good deals, purchasing some for themselves, and >passing a couple
>on to "flipees" for a fee, thereby creating a "flip"

Does a flipper need a real estate agents license?


Ross on the Gold Coast



_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.

 

[WebBoard]

Question for FLIPPERS...

Reply: 1.1.1
From: Robert Forward


Absolutely NOT Ross.

I negotiate a deal enmass and pass the details of some of these properties to others to buy.

And that is what separates a flipper to a buyers agent. Please correct me if I am mistaken but a buyers agent gets there commission from the sale price of the property. So if a buyer agent was to negotiate to half the price of the property doesn't that mean you get paid less??

A flipper just flips for a nominal figure and that is it. As long as the property is Pos geared I will flip a property.

Cheers
Robert

 

[WebBoard]

Question for FLIPPERS...

Reply: 1.1.1.1
From: Robert Forward


Hi Michael.

Beat you to that..

You are mostly correct. Though it changes from State to State.

Cheers
Robert

 

[WebBoard]

Question for FLIPPERS...

Reply: 1.1.2
From: The Wife


Nope Ross,

People dont need a real estate licence for flipping ( they do pay tax on the flip fee though),

People dont need real estate licence for wrapping, or managing their own property or walking up to a front door of a house, and asking if the people would like to sell their house to them.

To much is mystified about property, under the guise of real estate agent licence, I think real estate agents have their place, and they help a tremendous amount of people, but they really are just the middle man in selling property, some of us like to go wholesale )

But hey, there ARE some GREAT re agents!

Do buyers agents need a real estate agents licence?

 

[Kristine..]

Question for FLIPPERS...

Reply: 1.1.2.1
From: Kristine .


G'day, All

Having finally discovered how to retrieve posts from the archives, here is a 'cut & paste' job of my post of 14th February.

My current email is [email protected] but the email address at the end of this clip still works

Cheers, Kristine

Forum
[ Contents | Search | Reply | Next | Previous | Up ]



Re: Part 5 of the 9 biggest benefits of getting a buyer agent
From: Kristine re JohnE comment licensing buyers agents
Remote Name: 61.12.192.41
Date: 14 Feb 2001
Time: 21:46:50


Comments
John:

Section 4 of the Estate Agents Act (Victoria) 1980 clearly states that "estate agent or agent means any person who exercises or carries on or advertises or notifies or states that s/he exercises or carries on or that s/he is willing to exercise or carry on or in any way holds himself out to the public as ready to undertake the business of (a)selling buying exchanging letting or taking on lease of or otherwise dealing with or disposing of; (b)negotiating for the sale purchase exchange letting or taking on lease of or any other dealing with or disposition of; (c) collecting rents for; or (d) compiling information or preparing reports on the sale purchase exchange letting taking on lease of or otherwise dealing with or disposing of- any real estate or business on behalf of any other person:

"estate agent's licence means a valid and unexpired estate agent's licence under this Act

and Section 38 "Unlicensed person pretending to be licensed as agent" shall be guilty of an offence.


I am not familiar with legislation in other states, but the law in Victoria says you can act on your own behalf in buying selling etc, but if you act on behalf of another person - and note, the Act does not even mention charging a fee - then you must be a licensed estate agent.


So if you ever think of moving to or investing in Melbourne, I know where there's a terrific - and legal - buyer's agent!

Cheers

Kristine

[email protected]



Last changed: March 01, 2001

 

[WebBoard]

Question for FLIPPERS...

Reply: 1.1.2.1.1
From: Robert Forward


Well Kristine.

That shows how much you really know about the process of flipping.

I actually have a question for you....

Tell me Kristine, as a buyers agent does negotiating the price of a property to lets say 70% of FMV cut down on your income/commission??

If it does why would someone use a Buyers Agent, it would be like cutting off your own nose to spite your face. With you going out and negotiating to a lower price so you can get paid less, somehow that just doesn't make sense to me.

I, as well as many others I dare say, will be very interested and eagerly await your answer to this.

Cheers
Robert

 

[WebBoard]

Question for FLIPPERS...

Reply: 1.1.2.1.2
From: The Wife


Hiya Kristine/The Girl! )

***After a quick consultation with a legal friend of mine ( mind you it was quick, he said he would check it at work) This section you showed us....***


(Section 4 of the Estate Agents Act (Victoria) 1980 clearly states that "estate agent or agent means any person who exercises or carries on or advertises or notifies or states that s/he exercises or carries on or that s/he is willing to exercise or carry on or in any way holds himself out to the public as ready to undertake the business of (a)selling buying exchanging letting or taking on lease of or otherwise dealing with or disposing of; (b)negotiating for the sale purchase exchange or )



***Appears to be a job description/rules, for this particular society.****

**** This Part***...

(letting or taking on lease of or any other dealing with or disposition of; (c) collecting rents for

*** Would not allow on-site managers, or the occasional solicitor or accountant to collect rent for you, or reckon up a lease, or for me to go get all the rent for my mums houses.***

***Either you guys have some very weird laws down there, or, this is just a 'society' law, or I have misread it, or you are totally right!

But....If you are right, I don't understand you're point?

Is you're point that , Flippers are illegal?

To be honest here, There is no job description for a flipper, no union, no superannuation etc etc etc...

There cant be, because it doesn't have a classification, its not a job, Its a process, " Whereby, telling someone of a particular deal, it becomes what is known as , "a flip"

There is no job description for gazumping, I I know a few people who wander this earth who are 'gazumpers' ( bless their evil little hearts).

I know there are proffesional looking low ballers, but there isnt a job description called "Low baller" (hahahaha, can you imagine a man saying, Hi, I'm a low baller!)

So I guess what I am saying is, Flipping is a process, it is a name given to an occurrence that happens, a phenomena.

Most people who say, oh yeeeah, I'm a flipper! Are of a new breed calling themselves ( or not) Freestylers.

Freestylers, fancy themselves to be entrepreneurs, go getters, insanely crazy in a fun kinda way, and actually, most of us are pretty darn good looking )

Freestylers , fancy themselves as giving it a go, they will try anything once, twice if it felt good!

Now we cant go forming a union/superannuation around a freestyler either, ( Heaven forbid, we are FREEEEEE), if we did, we would have to do that to the " Buy and Holders".

( By the way , we love the buy and holders, as it is part of our plan, to buy and hold)

Freestyling is an occurance a phenomena)

Now certainly, if you have tried a flip, and you believe you have found your niche, and you are going to go and do it full/part time, then I would certainly urge you to join a group called 'buyers agents', for your own protection, because you will need, super/union/profesional advertising...etc etc etc...all the things, an already established society can give you.

But, If your just 'freestyling'.....let me in on whats hot and whats not please )

 

[WebBoard]

Reply: 2.1.1.1
From: Dave Tot


To the wife.

Ya missed the clincher at the end of the quote:

"............ on behalf of any person..........."

I think you will find that refers to third parties.... Eg: agent acting as property manager etc for owner..........etc

So of course we are free to do our own deals without a licence etc...like you said.