"Flipping" - Fraud or Good Business?

According to the recent article in The Clarion Ledger Online Fix it, resell it - at a profit by Arnold Lindsay alindsay@clarionledger.com "Purchasing and reselling houses is a lucrative trade in which investors buy below market value, make needed repairs and hope to sell at a profit." The practice, commonly referred to as "flipping," is really just renovating and reselling, said Bob Allsbrook, chief economist at AmSouth bank. Allsbrook said "flipping" actually refers to investing in a real estate venture that allows you to profit before the construction occurs because strong market demand causes prices to rise. While the practice isn't new, questions have arisen recently over the business practices of some companies. Federal officials in February indicted 10 people for their alleged mortgage fraud "flipping" schemes. Among the government's allegations are defendants sold houses at inflated appraisal prices and split the profits with co-defendants. Read the full story . . . .