Loans for flipped properties - Posted by Doug

import · April 3, 2002, 4:09pm

Posted by Brad on April 03, 2002 at 17:15:22:

Maybe you could fiance it yourself, or do a leaseoption. You’ll probably make more money in the long haul. I’m just a newby so dont take my word, I am just guessing.
Good Luck and God Bless you in all your investing

import · April 3, 2002, 4:09pm

Posted by Doug on April 03, 2002 at 17:09:16:

Help:

I am working with an investor to flip properties in the Northern California Bay Area. We buy the properties in a distressed state paying cash for them. We have done a good job in the buying, fixing and selling the single family residences. However, we have had a very hard time lately getting mortgages for our customers. We have been declined numerous times because the lender said that the property was flipped. The lenders want the properties to be seasoned for a year or more before they will consider lending.

I currently have three houses for sale and will have another two in about four weeks. Our customers are first time home buyers with credit scores in the mid 600 range and they are putting about 5% down and we are paying their closing costs.

Does anyone have any ideas on how we can get around the flipping problem?

We are considering renting to our buyers on a month to month basis until we can get the loan done so that we can have some income coming in.

Ideas anyone? Help!!!

Doug

import · April 29, 2002, 10:37pm

Re: Loans for flipped properties - Posted by Cathy NJ

Posted by Cathy NJ on April 29, 2002 at 22:37:43:

When flipping a property you MUST make sure you follow your state and your lenders guidelines regarding your interest in the closing you CAN NOT have any business or personal relationship with the seller- Your opening statement said We do not go there… Good luck!

import · April 4, 2002, 8:50am

Re: Loans for flipped properties - Posted by James Harris

Posted by James Harris on April 04, 2002 at 09:50:24:

If you are still looking for financing for your customers? If you call me at 660-909-3874. My name is Jamesa Harris of Associated Funding.

import · April 4, 2002, 7:15am

Re: Loans for flipped properties - Posted by Marcos

Posted by Marcos on April 04, 2002 at 08:15:26:

How many mortgage brokers have you talked to? Now of course this could be a regional issue, but I doubt it. I have 4 different mortgage brokers that I have worked with, and everyone says there is no problem, they know the programs to go through. I found them through referrals from active investors. Until you have talked to 100 brokers then I just don’t believe it, you just keep asking around until you find someone who can handle it. Ask other investors, I guarantee someone is getting around it.

Also, you must control the process. You tell the buyer that they’ll have to get their financing through one of these brokers, and you explain why. They probably cannot get financed any other way, so I probably won’t do the deal if they aren’t willing to work with my mortgage brokers. There is a side benefit to that as well, if the buyers are working through your broker, you have much more control over moving the process along.

On the flip side, you could offer owner financing and have a note buyer cash you out at closing. If you do it correctly you could get up to 95% cash out. Look on the paper board for that. A good contact would be Michael Morrongiello.

Marcos

import · April 4, 2002, 6:41am

Re: Loans for flipped properties - Posted by Greg X

Posted by Greg X on April 04, 2002 at 07:41:14:

Looks like no one has a good answer for this problem other than the L/O?

Who has REAL answers to the title seasoning dilemna?

import · April 3, 2002, 11:49pm

Re: Loans for flipped properties - Posted by Sean

Posted by Sean on April 04, 2002 at 24:49:03:

Doug,

This is why the private lenders (pension funds) that we work with have developed the simultaneous closing. If you are interested in loans that have no seasoning, title or prepayment issues and don’t appear on credit, send me your contact info. Our points range from 5-10.

import · April 3, 2002, 8:38pm

Re: Loans for flipped properties - Posted by tdv

Posted by tdv on April 03, 2002 at 21:38:17:

Yes, this is a new problem and I was wondering when it would rear its ugly head.

New FHA rule on loan underwriting have created this dilema. The Gov’t agencies feel they weren’t getting their fair money for investor bought homes, so they wish to discourage it legally.

My understanding is there is a 6 month rule, and anything more than that is bank dependent (Bank policy).

Options: I could suggest you find a good realtor/mortgagr broker and ask thim which methods to deploy to close the loan?

You could do a LO for 6 months to a year with a loan commencing then?

The new law is making it tough to get all cash with less then 6 months

PS. I have heard some escrow and title companies saying they won’t do flips? This is technically illegal for them to say I beleive. But they can state it as their policy.

The only way around it would be to sue the title/escrow company?

import · April 3, 2002, 8:38pm

Re: Loans for flipped properties - Posted by Tex

Posted by Tex on April 03, 2002 at 21:38:15:

just to let you know that statedloans.com hits you up for an automatic 10 pts right off the top, maybe more. If you can afford that then they are a good route to go.

import · April 3, 2002, 8:38pm

Re: Loans for flipped properties - Posted by tdv

Posted by tdv on April 03, 2002 at 21:38:08: