Lisa,
Flipping double wide can work pretty well but you generally will not get the percentage returns you can get on single wides.
You need to check with an attorney about the legality of collecting a finders fee but I’ll tell you it is done all the time, legal or not. You need to weigh the consequences. I think there is a pretty small chance of having a problem if you do that once or once in a while. If you do it as a business, you may run into a problem.
But, the main thing I wanted to say is that 85% of appraisal is not a very good deal. There are much, much better deals out there. You will go broke working with a spread that small.
Tom
Posted by lisa slack on March 25, 2003 at 07:03:44:
I posted earlier about flipping double wides…I picked one up at 85% of appraised value…and I have found some lenders who still (unbelievably) offer Fannie Mae rates to better credit buyers…I have found out though that due to title seasoning…I will not be able to flip, so what I will do is assist this seller, and just take a consulting fee on the final HUD statement page two line 1305…titled Consulting fee…I am wondering though…(and I guess I will need to consult a real estate attorney about this question…unless one of you folks have had any experience with it)…can I charge the difference between my 85% and the full appraised value that the seller will be selling at for my fee…or can I only LEGALLY charge the usual 4% for the consulting fee…I know most of the time 2-4% is the max allowed for consulting fees…
Anyone who does any consulting…YOUR advice would be appreciated!!!
thank you…
lisa slack