Posted by Ken (Fl) on October 09, 2003 at 12:23:59:
Gary,
To the best of my knowledge there is no flipping law, so I don’t understand the difficulty.
You may find an issue with seasoning on the current mortgage but that can be worked out by a competent mortgage brocker if you need to go that route. You may need to supply receipts of what you did do.
You could also suggest a hard money lender to the buyer. Use that money for purchase/rehab or both.
Create a note for the equity, Sub 2, L/O.
I think you find an easy solution here on the message boards.
Posted by Gary Baird on October 09, 2003 at 10:15:27:
We have a house we purchased for 22K. Its ARV is around 68K and it needs about 15k to hire someone to bring it to that 68K range. We are trying to wholesale the home for 39K. We cleaned it up, had the yard cleaned up, put doors back on, had the furnace and a/c serviced and cleaned, etc., but we haven’t done anything major.
We have a couple that is willing to pay us the 39K, but they want to borrow an additional 11K for the repairs. Two problems: we haven’t had the house for more than a month, and we haven’t done any major improvements, so how do we get around the flipping laws?
I think the house would comp out at around 50K as-is with a generous appraiser. How do we structure the deal so we get our 39K and they get their 11K for repairs/updating?