This weekend in both the Tampa Tribune and St. Petersburg Times there was an article about a local agent and his business partner who are making money flipping short sales. Basically they negotiate a low price with the seller's bank and then flip it to a buyer as a same day closing for a higher amount most times netting about 10-15k per transaction. They are using funds A-B and B-C and the option contract they are using is being sent to the original bank so they know what the buyer is going to do. The Tribune article was less flattering but it was written by Shannon Behnken who is a "Doom and Gloom" journalist.
Now, is there anything wrong with it? I think as long as the transactions taking place are disclosed to all parties then why not. Is it unethical to make money in this market? Is it illegal to flip a property? As long as full disclosure has been made then so what. Now the question is since he is a Realtor how does he list the properties for sale. Is it in MLS? He is not technically the owner just an agent/flipper so can he list it in MLS. I am not sure. That would be the only issue I would have.
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