Flip This House… But Isn’t Flipping Illegal??? Not the investor’s ethical kind!

Posted by I Love Murphy on March 10, 2008

Everyone is an investor in some form, fashion, or another. You may own stocks, bonds, have a bank C.D., or own real estate. There’s many ways to make money in real estate – rent, leases, appreciation, and more.

During the housing boom, flipping houses was almost a national pastime. Shows like Flip This House, Flipping Out, and Flip That House attracted huge viewing audiences, and nearly every book in Amazon’s real estate top sellers category had the word “flipping” in its title.

If you mention house flipping to a real estate or law enforcement professional, however, they are more likely to think that you are talking about committing a crime. To them, the word “flip” is a nasty four-letter word. HUD (the U.S. Department of Housing and Urban Development) declared it so when it released its FR (Final Rule)-4615 Prohibition of Property Flipping.

So, is flipping good or bad? Legal or illegal?

Well, that depends which form of flipping you’re talking about. The illegal variety consists of selling a home multiple times over a relatively short period in order to artificially inflate the home’s value and cash out the inflated equity. To begin, a con artist will purchase a home (typically a dilapidated property that costs very little).

He or she will then obtain an inflated appraisal for the property – by finding an appraiser willing to go along with the scam, stealing an appraiser’s identity to forge a fake appraisal, or using a phony appraisal document. The con artist can then apply for a loan for the inflated amount. (Or, the con artist will apply for the loan and then, with the help of a cooperative loan officer, obtain the inflated appraisal to present to the lender.) In either case, the con artist usually takes out the loan in the name of a straw buyer (someone who owns the home in name only) or by using a fake or stolen identity.

Eventually, the house flipper either sells the home to somebody who is unaware of its true value or abandons the home.

That’s illegal flipping in a nutshell.

Legal flipping consists of buying a home for less than its true market value (usually at least 20 percent less), fixing it up, and then selling it at or near its true market value. This fix-and-flip approach is the type of flipping they do on TV shows like Flip This House and Flip That House. It is a shrewd and honorable way to earn a buck in real estate.

As a consumer, knowing the difference between the two types of flipping is important. Know the illegal form of flipping so you don’t break the law or get stuck with an overpriced piece of real estate that’s being used in a flipping scheme. Know the legal form of flipping, so you can fix and flip your way to wealth in real estate.

About the Author: Ralph R. Roberts, GRI, CRS is an experienced real estate investor and consultant and the author of Flipping Houses For Dummies (John Wiley & Sons).

In working with The POLTROCK TEAM, you won’t have to worry about becoming the prey of an illegal flipping scheme when you’re looking to buy a home or land in the mountains. It’s extremely important, no matter where you are, to work with a Realtor who’s looking out for your best interest so your investment doesn’t become a bogus one.

If you’re looking to invest in the mountains and want to do the legal flipping by purchasing a great property to make money in the short term or long term, let us know! We come across great values, not every day, but regularly and need people who are looking to invest. Call us us today and let me know! Not only that, subscribe to our blog and you can find out great values as we come across them!

John and Jessica – The POLTROCK TEAM – RE/MAX of Murphy, NC – Real Estate in the mountains of North Carolina – www.MyMurphy.com – JohnPoltrock@gmail.com – Call (877) 837-3002 and demand The POLTROCK TEAM!!!

New Change in 1031 Tax Information Makes It Better for you Vacation or Second Home!

Posted by I Love Murphy on March 4, 2008

1031’s have long been a real estate investor’s friend. For those of you who are unfamiliar with them, it is a section of the IRS tax code that allows a person to sell an investment property and purchase another – tax free.

1031’s of course are simple in theory but have a few stipulations by the IRS. If you are considering buying a mountain property and want to do a 1031, we would be happy to guide you through the process.

Here’s the basics behind the new rule: a person who owns a vacation or second home for at least 24 months, uses it for 14 or less days a year, or less than 10% of the time it was rented in any of those years, can qualify that dwelling unit for a tax-deferred Exchange. You don’t have to rent it out for an extended length of time, it could be rented for just 14 days a year and still can qualify.

Want more help? Contact us! John and Jessica – The POLTROCK TEAM at RE/MAX Mountain Properties – www.MyMurphy.com – JohnPoltrock@gmail.com – Call Toll Free (877) 837-3002 and demand the POLTROCK TEAM! for Homes, Land, and other types of real estate in Western North Carolina

John Poltrock in the Mountain Lakes Board of Realtors 2007 Million Dollar Club!!!

Posted by I Love Murphy on February 6, 2008

Just released in the Cherokee Scout Newspaper, the announcement of the Mountain Lakes Board of Realtors 2007 Million Dollar Club achievers! Congratulations to everyone who reached their goals in 2007.

It is folks like these who make valuable contributions to our community and economy. Many of the agents in this class and production level donate their time and money to things like the Mountain Lakes Board Scholarship which is given to outstanding students in areas our Board services to help offset the cost of loans.

When the Million Dollar Club winners are calculated based on production, it is done by sides involved. For example, if a $100,000 home is sold, the "listing agent" would only be allotted $50,000 toward his production level if another agent sold it. If the "listing agent" also worked with the buyer, the full $100,000 would be allotted toward their production. A minimum of $1,000,000 in production is required for that club and $750,000 in production to be awarded the Diamond Club award. Some folks have the misconception it is how much money that person made last year, and I can assure you it is not how much money that person made.

Again, congratulations to all of our Realtors who achieved a spectacular level of production and professionalism.

John and Jessica Poltrock – The POLTROCK TEAM – RE/MAX Mountain Properties in Murphy NC – www.MyMurphy.com – JohnPoltrock@gmail.com – Call (877) 837-3002 and demand the POLTROCK TEAM!

Hiwassee Valley Pool and Wellness Center is a great asset to the town of Murphy and Cherokee County!

Posted by I Love Murphy on February 4, 2008

Since the opening of Hiwassee Valley Pool and Wellness Center, the people of Murphy have really enjoyed being more fit! Myself included, folks have been going to many of the different offerings the Wellness Center offers. The gym features many weight machines, free weights, ellipticals, tread mills, and more! The "class room" features many different classes like pilates, yoga, and more.

One of the landmark features is the pool itself. Right now, most people notice it because of the giant white dome that covers the pool during the cold months so it can be used year around. Its offered to many groups for swim classes, kayaking, and more! In fact, my daughters basketball team had a pool party to celebrate the end of the season yesterday.

Costs are very affordable considering all they have to offer. Although they have several different plans, I would say the two most common is $35 per month for an individual or $55 per month for a family per month.

They are a great compliment to the Murphy Community. Next time you’re going through the town of Murphy, look for Konaheeta Park and the Hiwassee Valley Pool & Wellness Center is right there.

695 Konaheta Street; Murphy

(828) 835-3700

John and Jessica Poltrock – The POLTROCK TEAM at RE/MAX of Murphy NC – Homes and Land in the Mountains – Real Estate for sale in Cherokee County – www.MyMurphy.com – JohnPoltrock@gmail.com – (877) 837-3002 – Demand the Poltrock Team!

*Note* – Many people commonly misspell Hiwassee. Many times you will see Hiawassee which is not local to our area in North Carolina. There’s Hiawassee GA, which is 20-30 minutes away from us…

Maintaining the right moisture level in your home

Posted by I Love Murphy on January 29, 2008

Did you know there’s a level of "Relative Humidity" to keep your home’s air at? If your house is like mine in the winter, everything seems to dry out. The weather and time of year really can have a lot to do with it. My clock has a digital hygrometer built in, so I’m able to track what the air is like. Here lately, it seems to stay around 33%. What does that mean exactly?

If your house is at 30% or less – its too dry. This can cause problems just like excessive moisture. Your skin dries out, drywall will crack or gap in areas, you’ll be more susceptive to colds

If your moisture level (relative humidity) is above 50% – you’re too moist. This can lead to mold, allergy concerns, rot, damage electronic equipment, and other things can occur if its too high.

With all of that said, you should try to maintain your household humidity around 45%. Simple humidifiers (or dehumidifiers if you’re too moist) can help the situation. You can have whole-house units installed by a local HVAC company that will do the trick. Not only that, they can provide professional recommendations that will make your air in your home safer and healthier.

Two Local Heating and Air Contractors:

Cherokee Heating and Air – 828-837-8411
Elliott’s Heating and Cooling – 828-837-4364

Want more? Read the article I am came across at USA Today that answered a lot of my questions.

John and Jessica Poltrock – Real Estate in the Mountains of Murphy, North Carolina – Homes and Land – www.MyMurphy.com – JohnPoltrock@gmail.com – (877) 837-3002 – Demand the POLTROCK TEAM!

REMAX Customer Appreciation Picnic 2007

Posted by I Love Murphy on October 30, 2007

This year was a great picnic!!! We had a great year thanks to all of our clients, and here’s our appreciation shin-dig to thank them! Here are some pics from it:

The RE/MAX Hot Air Balloon goes up and gives rides! In fact, so many people road, we literally ran out of fuel on the last trip up.

Then there was the blow up toys for the kids which was a favorite

Tim the Magician performed magic tricks for the kids to watch – this guy was good!

And the Hay Ride by Alan Worley

And then the Children’s Miracle Network Auction! Pictured here is one of the biggest bidding hits – the rooster! Originally a door prize, the rooster was donated back by one of our clients, Bob & Evelyn Bradley. It went on to raise over $500 by being bid on twice!

We had the picnic at McGuire’s Millrace Farm this year, and they did an outstanding job. Everything came together flawlessly and Frank Barber cooked some amazing food! They did such a great job, we’ll be having it there next year.

We appreciate all of you and will look forward to the 2008 picnic. Have any other pictures from the event? Send them our way!

John and Jessica Poltrock – The POLTROCK TEAM at REMAX of Murphy – Real Estate in the Mountains of North Carolina – www.MyMurphy.com – JohnP@remax.net – (877) 837.3002

Blessed in the Mountains

Posted by I Love Murphy on October 30, 2007

It’s sometimes easy to forget just how lucky you are. The fires in California caused by arsonists (what were they thinking????) that set San Diego and surrounding areas ablaze makes me realize just how good mother nature is to us here in the mountains of North Carolina. Fires are more controlled by the mountains, tornadoes are not common because the mountains break up the winds, and hurricanes are rarely more than a rain storm by the time they make it to us. In fact, it must even reflect in our insurance rates because our clients and customers are always shocked to hear how low our rates are.

Our hearts and prayers go out to those in California who have lost your homes, businesses, and more. We even received notice one of our real estate mentors, Brian Buffini (Brian’s Website), lost his home as a result of the flames.

John Poltrock – REMAX Mountain Properties – Real Estate in Murphy NC – www.MyMurphy.com – (877) 837-3002 – JohnP@remax.net

We’re Officially Moving!

Posted by I Love Murphy on October 30, 2007

Great news! We’re changing (and certainly upgrading) our location to 4800 US Highway 64 West in Murphy. The owner/broker of our office, David Ritz (recognize the name? He’s Jessica’s brother!), is not only creating a new real estate office, but a the nicest professional building in the entire town of Murphy – or for that matter, Cherokee or Clay County! With office space for lease on the 3rd level, REMAX on the second level, and retail/office space on the first, this is truly raising the bar

Officially named Cornerstone, it was presented with many names. I had the idea of letting everyone in the area try their hand at the name, so that’s what we did! David ran an ad in the Cherokee Scout newspaper with a write in slip offering their name. The Ritz, The Rock, Ritz-o-Rama, The Compound, and many others came in. Cornerstone was selected, and we gave away a dinner at Enrico’s Italian Restaurant in Hiawassee.

We should be moving in tomorrow so long as Verizon is able to switch over the phones in time. As soon as that happens, we’ll start moving! It’s a gorgeous building and you’ll have to stop by and see it! Gorgeous rock fireplace, scraped hard wood floors, BOLD colors, and more than I can describe – just come see it for yourself! There will be a grand opening, we just don’t know when yet.

Can’t wait to see you in our new office at Cornerstone!

John and Jessica Poltrock – The POLTROCK TEAM – REMAX at Murphy, NC – (877) 837.3002 – www.MyMurphy.com – JohnP@remax.net

When you want results, demand the POLTROCK TEAM!

Chatuge Lake Information

Posted by I Love Murphy on October 2, 2007

Lake Chatuge is one of the gorgeous mountain lakes. In fact, it is likely one of the most visited in our local area. According to the Tennessee Valley Authority (TVA), it is their 4th most developed lake in their system with 42% developed in some form. It is situated in Clay County North Carolina and Towns County Georgia. It was impounded in 1942 and is 13 miles long. With over 130 miles of shoreline and consisting of over 7,000 acres.

It is primarily used by the TVA for power generation and flood control, which is why the water table fluctuates throughout the year. During the summer, it is targeted to have between 1923 and 1927 feet. The TVA tries to have the water table to "recreational levels" on June 1st and maintain that through August 1st.

Something interesting is that the TVA owns land or land rights in some form to the 1933 elevation around the entire lake. If you would like to alter the shoreline at all, the TVA MUST approve it. The TVA Hiwassee Watershed Team is available to do any kind of permitting or any of the sort at 221 Old Ranger Road in Murphy North Carolina. You can call them at (828) 837-7395.

Approximately half of the land is owned by a government entity – The US Forest Service, the TVA, and various county land. For example, 44 acres of property consists of the Georgia Mountain State Fairgrounds.

More information about much of this can be obtained directly from the TVA by calling 1-800-TVA-LAND.

John and Jessica Poltrock – The POLTROCK TEAM at RE/MAX of Murphy, NC – www.MyMurphy.com – Call Toll Free 877-837-3002 and demand The POLTROCK TEAM!! – JohnPoltrock@gmail.com

Category: GENERAL INFORMATION