Flip to Yourself? Profitable or not?

[Account Closed]

My Partner and I are just getting started in the investment part of Real Estate. We recently attended a free seminar by KeySpire's Scott Mcgillvray in Tampa Florida. We received a lot of good, basic information but, what stood out to us the most was the "Flip to Yourself." model. I'm sure the actual way of flipping has been around forever, but that was his trademarked phrase. Basically, you purchase a home (with any financing), repair or renovate, and then sell it...to yourself at maximum appraised value. According to the model, you keep the property, turn a profit on the flip, you don't pay taxes since it was not a transaction between two entities and the closing, holding and financing fees are cheaper. It sounds like a savvy way to maximizing your profits. (remember I am brand new in this world, be gentle)

Has any one bought and held properties using this method?

How did you sell it back to yourself? Refinance?

Did you use a real estate agent?

[Brad Shepherd]

I'm not sure if you're quoting the details right, but as you've stated, it doesn't make much sense. You can't sell a property to yourself (I'd love to see the title company's reaction when they go to receipt that contract! :), or even from yourself to/from your entity. But it does sort of sound like what's described on this site as a BRRRR method: Buy, Rehab, Rent, Refinance, Repeat. It's not a sales transaction, but a refinance transaction that puts money in your pocket. The refi proceeds are not taxable, there are of course no agents involved to pay, though of course you'll pay the lender fees.

Does that sound like what you had in mind?