All Forum Posts by: Brit Foshee

@Brit Foshee

Real estate laws (and financial) laws often don't follow a path of logical thinking, trying to apply business applications we use in personal property will take you down the wrong path with real property.

Your 1. ; houses aren't cans of beans, car wholesalers (dealers) do need a state license.

         2. Buying means closing, so long as you have good funds to buy you can sell 30 seconds later, no problem, but you can't use the end buyers escrow money anymore.

         3. Correct, you can have an employee, but not on strict commission, not in real property unless you are a broker. You can pay them ten bucks an hour to find deals, they can contract in your name (not theirs), do some digging in basic real estate principles and you should see why real property is different than personal property.

          4. I didn't make this stuff up, it's predatory dealing in real property, you'll find that capitalistic system is often very socially oriented due to the nature of real property, property rights are more sacred in real property than with your car title, owners are protected much more. Equity stripping is stealing equity or rights of ownership, and you don't buy at a discount from retail, you buy at a market value or a distressed value. And no, when you buy you do not have equity, equity is established over time, minimum of one year for your books after you have an appraisal, otherwise equity is recognized when you sell. Equity for refinancing can be recognized by a lender at 6 months refinancing with an appraisal. 

If you immediately resell a property at a profit, your purchase was a distressed sale, or if it was at market, you sold at a premium price to a willing and able buyer, that's fine, but to a point so long as your buyer was competent meeting the requirements of the transaction, where you didn't take gross advantage of a buyer.

Additionally, all investors should be aware of Tort Law, most here are not, as well as predatory dealing.