BiggerPockets

You need to explain your plan. What are you planning to do with the property after you buy it?

Some lenders want to see that you have owned the property for some time period before they will finance it. That would apply if you're trying to refinance it or if you're selling it to someone else. Exactly how long depends on the lender, and depends on the loan. A cash out loan will need more "seasoning" than a rate and term refinance, for example.

If you're trying to do a fix and flip, there are a LOT of costs they skip over on shows like "flip this house".

Ok so what I'm thinking is borrowing money from a hard money lender and buying a house for a quick fix and flip of the house. From what I have read here and other places this is the way to start making some money. So are you saying that a lender will want you to hold onto the house longer? So when you agree to their loan there is time period you agree to? With that you have to wait to sell the house?

First, to answer your question, the problem is with the lender of the person who would be buying your house. If the person who wants to buy your fixed-up house is trying to get an FHA loan, their lender will require that the seller (you) have owned the home for at least 90 days.

Your options are to wait the 90 days to sell or to find a non-FHA borrower to sell to.

As for this point...

Originally posted by Francisco Torres

Ok so what I'm thinking is borrowing money from a hard money lender and buying a house for a quick fix and flip of the house. From what I have read here and other places this is the way to start making some money.

Quick? Potentially.

Easy? No. Especially in this market.

I would suggest that before you seriously consider getting into the rehab and flip business that you do a LOT of research on a number of subjects, including:

- Your market. What's selling and not selling in your market. What price ranges, what types of houses, which neighborhoods, etc.

- Your buyer demographic. Who's buying in your neighborhoods? What types of loans are they getting? What are their FICO scores? Do they have cash or do they need help with closing costs? Etc...

- Financing. Where will you get the money to do this? You mentioned HML...do you know any?

- Rehabbing. What do you know about the cost of construction and rehab? If not much, you need to learn. You need to learn how to estimate the cost of a rehab job, how to find contractors, how to manage contractors, etc.

- Financial Analysis. What's a good deal? Why? You need to learn how to tell the difference between a bad deal and a good deal. Then you need to be able to tell the difference between a good deal and a great deal.

If you have the cash to jump in and learn from your experiences, go for it. But keep in mind that if you do this, you'll likely lose money on your first deal (many people do). The other alternative is to spend several months learning everything you can about the business, and perhaps find a mentor.

Good luck!