BiggerPockets

Does anyone know where I can read about the Federal and state laws for FLIPPING properties? For example, do you have to hold a certain amount of time before you can even put your place up for sale? Any resources/websites would be great. Thank you!

There is no statutory authority, State or Federal, the prohibits flipping of real estate properties.

Several lenders have instituted "seasoning" requirements and FHA has their own seasoning guidelines. However, most FHA underwriters, loan officers etc do not apply them correctly.

I performed an in depth analysis of the FHA seasoning rules in my blog post here: http://realestatelaw.typepad.com/where_is_blackacre_anyway/2009/04/seasoning-.html

Dwight,

Even if you are a dealer to real estate, there is no law that prohibits or restricts your ability to do business.

There is a new Colorado law that requires disclosures on both sides (to lenders also). Here is a link to an article and the text of the law: Colorado House BIll 10-1133

There are laws in some states that prohibit transactions that might be considered "Equity Skimming"

In Washington state this falls under RCW 61.34 which some are saying here generally places many of the preforeclosures "off-limits" to RE investors.

They are applying this law to many situations here. It is a very new law though and will likely be challenged in the courts. There have been many incidents were low ball comps have been used and it is said there is no equity and the investor turns around to sell it for significantly more. The law was enacted to prevent this type of activity. I believe it goes to far.

Vanessa, looks like the answer is there are no federal rules, but you would be wise to check on the regs of your state. I suggest visiting the local REIA group. They will know what is off limits for your area.