In Brief: Jul. 24, 2000

FLIP TAX Property flipping--buying a home, renovating it and reselling it at a higher price--is smart business. But a recent Senate investigation found that this practice--with a fraudulent twist--is on the rise in major cities. Shady brokers are flipping properties using inflated appraisals and falsified renovation documents. Be sure to check out mortgage lenders and brokers as well as the property, or hire a closing attorney.

FUNDS FOR PEANUTS With so many mutual funds out there touting $2,500 or higher price-tag minimums, a fledgling investor can be discouraged. But there are fund companies that allow investors to open accounts with as little as $250. Below are a few good performers who rank in the top half of their category:

Annual Min. Future Fund* Return** Invest. Invest.

First Mutual 29.6% $250 $50 Pax World 18.7% $250 $50

Excelsior Blended Equity 23.09% $500 $50

Excelsior Value & Restructuring 25% $500 $50

Main Stay MAP-Equity I 22% $500 $100

*no-load **based on 5-year average source: Morningstar Inc.

BANK ON IT Automakers have long been involved in consumer finance, so it's logical that one would start a bank. BMW has just launched an online bank at www.bmwusa.com/banking It offers two credit cards, car loans, of course, and other financial services, with a rewards program that features free merchandise and travel. But check the rear view, BMW. General Motors is rolling out its own virtual bank in the fall. Other carmakers are likely to follow.

--By Carole Buia