flipping w/o seasoning - Posted by Jon

import · May 17, 2005, 8:58am

Posted by Jonathan Rexford on May 17, 2005 at 20:03:45:

Yes. That is why we never take the money from the BUYERS side of closing

import · May 17, 2005, 8:58am

Posted by Jon on May 17, 2005 at 08:58:49:

Can someone give me THE definitive technique to flip property without seasoning? How can I flip with the new lender restrictions out there?

Thanks!

Jon

import · May 18, 2005, 2:54pm

Re: flipping w/o seasoning - Posted by Crista

Posted by Crista on May 18, 2005 at 14:54:56:

Am I correct in understanding that seasoning = 12months ownership? If I were to list a house through a realtor, do I just tell them up front that I’ve owned it less than 12 months and let them deal with finding a qualified buyer?

import · May 17, 2005, 11:07am

Re: flipping w/o seasoning - Posted by Richard-(FL)

Posted by Richard-(FL) on May 17, 2005 at 11:07:09:

Jon,

There is another method you can use, but everything has to be done carefully.
You can have the seller sign a LPOA (that you record on public record), and you can have the them sign a deed that you hold in trust (don’t record unless absolutely necesary).
This way, the LPOA gives you control of the property without taking title (as long as the LPOA actually states that you have control of the property).
The deed in trust will be used to protect your interests, but as long as it is not recorded, then the title seasoning corresponds to how long ago your seller took title to the property.

Hope this helps.

Sincerely,

Richard

import · May 17, 2005, 10:47am

Re: flipping w/o seasoning - Posted by Jonathan Rexford

Posted by Jonathan Rexford on May 17, 2005 at 10:47:22:

Find cash buyers.
Use Private Lenders.
Use the Simo close deal with selling owner finance notes.
As stated below find lenders that have know problem…a local lender may not have an issue.

Their is away which is more in detail that I do, than I can type.

import · May 17, 2005, 9:20am

Re: flipping w/o seasoning - Posted by DaveD (WI)

Posted by DaveD (WI) on May 17, 2005 at 09:20:39:

Flip to those where seasoning isn’t an issue, like those with cash or their own credit lines. Or use lenders who don’t require seasoning.

import · May 17, 2005, 3:48pm

Re: flipping w/o seasoning - Posted by Jon

Posted by Jon on May 17, 2005 at 15:48:57:

Hi Jonathan,

Does your method involve an assignment of beneficial interest in a trust?

Can anybody share some details on how that works?

Thanks,

Jon

import · May 17, 2005, 1:22pm

Re: flipping w/o seasoning - Posted by Chris-Fl

Posted by Chris-Fl on May 17, 2005 at 13:22:36:

I’d like to hear if you’ve got the time to type the way in a little more detail.

import · May 17, 2005, 9:24am

Re: flipping w/o seasoning - Posted by Jon

Posted by Jon on May 17, 2005 at 09:24:47:

Hi Dave,

Thanks for the reply. Can you suggest any lenders where seasoning might not be an issue?

import · May 17, 2005, 3:55pm

Re: flipping w/o seasoning - Posted by Jonathan Rexford

Posted by Jonathan Rexford on May 17, 2005 at 15:55:57:

Find a property to flip. Find a buyer to flip it too. Assign the contract that you have with the buyer that you have back to seller.

import · May 17, 2005, 10:45am

Re: flipping w/o seasoning - Posted by Mark-Chgo

Posted by Mark-Chgo on May 17, 2005 at 10:45:15:

You are essentially only going to have seasoning issues with government backed loans, such as FHA. Line up a good mortgage broker. If your buyer has issues with his lender, or has none, you can refer him to yours, who can get the loan done.

Good Luck!
Mark

import · May 17, 2005, 9:43am

Re: flipping w/o seasoning - Posted by DaveD (WI)

Posted by DaveD (WI) on May 17, 2005 at 09:43:18:

Pick up the phone and call around. Or, get face to face with them. phrase your question something like this: "I will frequently buy a house, then pretty quickly sell it for a profit. Which lending programs do you have that will work with this, and which ones won’t? And find out why they do or don’t work.

If you are serious about buying and selling, you should have a clear understanding of what works in your neck of the woods - both on your buy side, and for your take-out buyer. For example, FHA has tightend their seasoning requirements, so we don’t use most FHA programs. Most national lenders don’t have a problem, but many of their employees don’t know that, if you know what I mean.

import · May 18, 2005, 9:38am

Re: flipping w/o seasoning - Posted by Jon

Posted by Jon on May 18, 2005 at 09:38:55:

I like the idea of assigning the contract back to the seller and getting paid the assinment fee out of the closing.

My thought was to have a straight option agreement with the seller for 90% of FMV, a sales contract for 100% FMV with the buyer, then assign the contract I have with the buyer back to the seller.

I guess the thing I’m having trouble with is the sales contract with the buyer. Who’s name is listed as the seller on the contract? If the sales contract is in my name as the seller, then I could run into seasoning issues.

I’m sorry if this is a simple issue to get around and I’m certainly no expert, but I know mortgage lenders and I know what they expect to see for a contract. They want to see the seller’s name as the current owner of the property and the buyer’s name as the party qualifying for the loan.

Can someone fill in the blank for me on this?

Thanks very much!

Jon

import · May 17, 2005, 7:44pm

Re: flipping w/o seasoning - Posted by John

Posted by John on May 17, 2005 at 19:44:01:

Do you find that many lenders are not willing to pay your assignment fee? I am primarilly asking regarding retailing to end buyers.