From Dream Homes to Financial Nightmares
The Thin Line Between Profit and Loss in Real Estate
Whether you’re someone who sells houses, buys them to sell later, or is just interested in how it all works, it’s important to know about doing things the right way. Let’s break it down into three big ideas: rules for being fair, or we call it “Ethics”, fixing up houses to sell for more, or we call it “Flipping”, and avoiding tricks that trick people into bad deals, we call it “Predatory Lending”
Fixing and Flipping Houses: Have you ever seen a show where someone buys an old house, fixes it up, and then sells it for a lot more money? That’s called flipping. It sounds fun and can be good for the neighborhood by making old houses look new again. But, it’s important to do it the right way. This means making real improvements and not just making the house look good only on the outside to sell it quickly. It’s all about making the neighborhood better, not just making money.
Avoiding Bad Deals or Predatory Lending: Sadly, some people try to trick others into making bad deals, especially when borrowing money. This is called predatory lending, and it’s a big no-no. It’s like telling someone they can borrow money knowing they won’t be able to pay it back, just to make a quick buck. People who sell houses need to help their clients avoid these bad deals by teaching them what’s good and what’s bad and standing up for what’s right.
Ethics for Selling Houses: In Maryland, there are special rules that people who sell houses need to follow. These rules are like a big list of dos and don’ts that help everyone play fair. For example, they say you should always tell the truth to the person buying the house and make sure you’re not just thinking about making money for yourself. Schools like Tristar Academy teach these rules to make sure everyone knows how to be fair and honest.
So, what can we do to make sure we’re all playing fair? It starts with learning the rules and sticking to them. For that Tristar Academy’s MD Ethics, Flipping, and Predatory Lending Course will help you, Here you will learn:
- Master the obligations and rules as mentioned in the NAR and Maryland Code of Ethics
- Apply the Code of Ethics guidelines and principles to your practice as outlined by the National Association of REALTORS®
- Understand how the recent changes to the code can affect your business
- Resolve disagreements with colleagues through the successful implementation of mediation techniques
- Structure and protect your real estate flipping business through the use of the latest techniques.
- Understand how ordinary steps in the mortgage process are used by predatory lenders to cheat borrowers
- Identify how borrowers are cheated through routine steps in the mortgage process by predatory lenders.
- Protect your clients and yourself from predatory lending practices
These courses are delivered online by experts via Zoom allowing you to attend from the comfort of your home. Register Now This course is a 3-hour Maryland Continuing Education Requirement Category: D – Real estate ethics or professional standards