If you want to flip for a living title seasoning will be a problem. If you can’t figure out a way to play with the lenders don’t play at all. Because they have the cash that you want.
I’d hate to see you come back in a month with
a title seasoning problem.
The site I gave you specializes in selling homes quickly. Their partnership discussion board talks about retail flips and how to avoid title seasoning.
Have you consulted a local attorney on how to avoid title seasoning? That may be your best bet.
Posted by WDorsey-FL on January 19, 2003 at 15:16:47:
I have 2 opportunities to do a retail flip. I’m able to tie up 2 properties for $10k less than I can sell them for in a hot area. I don’t know what my buyer’s lender’s requirements are at this point but I want to avoid the title seasoning problem just in case.
So, should I tie up the property with a contract then simply assign the contract to a retail buyer for my profit? Or should I get an option on the property and have the seller sign a deed with the Grantee field blank and all other appropriate paperwork; and have my title company hold everything until we are ready to close. Then when I close on the properties, the original seller will be the closing seller and my buyer will be the actual buyer; my profit would be paid to clear the cloud on title. I hope that makes sense. Just not sure the best way to do this.
Posted by WDorsey-FL on January 21, 2003 at 15:54:46:
I don’t really want to walk away from the deal simply because the lender won’t play. I checked the website and it there wasn’t anything on retail flips there.
Before you beat yourself to death find out if your lender will close with unseasoned title. If they do then you can setup a simultaneous closing. Problem with this is you might have to pay for two escrows.
If they don’t I recommend having your attorney draft a clause to allow a cancellation fee of your seller/you contract.
An excellent site that deals with retail flips is nodiscount.com. Spend sometime searching their agent/marketer discussion board.
There are several ways to get this done but procedures vary from state to state.