Investing in residential property? Protect yourself against illegal "flipping"

If you're considering investing in rehabilitated residential property, you're making a smart choice. Real estate values have been climbing at the same time demand for homes has been increasing — an impressive combination.

Considering flipping a house?

Often, people and companies that sell rehabilitated real estate buy a run-down property and invest a lot of money and sweat equity in order to make it attractive to a buyer. They reap the reward when the property is sold for much more than what was originally paid for it. Not only is this is a lucrative opportunity for those with a bit of extra cash, it also makes more housing available at a time when it's in demand. Additionally, it's often a good investment choice for the eventual buyer as well.

Know the risks

Before you invest in a rehabilitated property, you should obtain a professional appraisal from an appraiser who has your interests in mind. Too often, homes are "flipped" for considerably more than they were paid for – without any substantial improvements to justify the higher price. You're the one left holding the bag. Shouldn’t you have someone on your side making sure your money is being invested wisely?

Protect yourself and your investment

It's easy to protect yourself: Hire a professional appraiser to ensure the property's improvements truly justify the asking (or agreed upon) price. If you're buying more than one property at a time from the same buyer, it's even more important to have the properties appraised by a professional working for your interests.