BiggerPockets

This is true for some - but not all - REO, because the new deed from the bank carries this sort of deed restriction.

But that does not apply to all properties.

was talking today with a Realtor from Coldwell Banker and he said that I have to keep the house for 3-4 months before selling and i can't put it under contract and assign it anymore because this is illegal.

Completely incorrect! Wholesaling is NOT illegal (leave it to an agent tro say that) and assigning contracts is NOT illegal either.
Banks do not allow assignments of contarcts on short sales or REO's but that is their own rules, there is nothing illegal about it.

FHA just lifted their 90 anti flipping rule, at least here in CO.

Before posting this, please make sure you are accurate as this is a very hot topic and the proper information (and current) is essential. To my knowledge, FHA has not lifted their 90 day seasoning policy in any state. I do know that banks are exempt, but private owners must hold property for at least 90 days before a new buyer may enter the laon process with FHA.

The only time flipping is illegal is when you are defrauding a lender. Therefore, make sure your buyers are cash, and if they are not cash then make sure they are using bank funds not regulated by fannie may or freddie mac. e.g. a portfolio loan. You basiclly want the lender to understand what you will be doing and have them create a loan program for you.

As for this Realtor, I would say they just don't understand investing, most people don't. I would just find a new agent or ask them to tell you where you can find info that its illegal... The secret is there isn't any place.... Learn from people who understand the business (this is a great site for that) and apply what you learn...

I hate closed minded Realtors. I had a Realtor the other day that had never heard of Wholesaling and did not understand Sandwhich Lease Options. When I explained what we did the only thing she said was "Your not a licensed Realtor, how can you do that?"

I think some Realtors look at Investors as either competition or crooks, the good ones see a potential customer. I would just laugh it off and find another realtor.

Jeff

A lot of realtors adhere to the following policy: When in doubt, say it's illegal.

I have realtors tell me all the time that what I'm doing is illegal. I don't even argue anymore.

If you have questions about the legality of what you are trying to accomplish- ask an attorney. Most realtors don't know what they are talking about when it comes to creative real estate.

The realtor was probably referring to the 90 day deed restriction for some Fannie Mae REO's. The one's I've seen require that you can't resell or refinance it for more than 10% of what you bought it for within 90 days.

I agree that realtor's throw out the "illegal" word when they don't understand something. They are actually trained that way. Real estate licensing classes are mostly hours upon hours of what's illegal and all the ways that you can go to jail, lose your license, or get sued.

I never share with a realtor that I'm buying a property from or with that I plan on wholesaling the property. You are just setting yourself up for problems.

Originally posted by Jeff And Cheray Warner

Forgot to mention, DON'T tell the Realtor that you are Wholesaling anyway. Just tell them you are looking at it for an Investment. If it's a REO, the Realtor is working for the Bank and will try to get every penny they can. That's my opinion.

Jeff

Definately agree with this. It's just that many agents do not view real estate from an investing perspective, so it's difficult for them to be open to different possibilities and strategies.

I'm very surprised some Realtors haven't come on here and got all "crabby patty" on everyone for verbalizing their opinions and experiences.

obviously as an investor I completely agree when asking a Realtor anything related to "investing" you're wasting not only your breath but the oxygen it takes when the agent gets all gaspy for air and flaring their arms around like a monkey screaming, " the end is near! the end is near"

I'm on board with flower Steph, I don't waste an argument anymore, I've done enough deals with enough Realtors that I don't need to "educate" them anymore, it's their fault not mine they don't know any better.

caveat, when you do find a Realtor that at least understands and does what you ask them to do, consider an informal marriage.

I'm very surprised some Realtors haven't come on here and got all "crabby patty" on everyone for verbalizing their opinions and experiences.

The broker part of my life does not condone agents that pass on what they don't really know. Like this agent may have overheard a conversation about seasoning requirements and tells herself wow I didn't know that, and I'll pass on my new knowledge and let everyone know I'm up to date. Trouble is they only heard part of the conversation but they are willing to pass on this new found knowledge to the next agent who won't check it out.

The good news is this type of agent doesn't usually last to long, the bad news is they will be replaced by a similar new agent. The good news is more investing courses are being offered as continuing education for licensees and a small dent is being made..

The part of my being all crabby patty would be saved for the investors that don't set them straight. You don't need to argue, you don't need to educate them, just tell them "its a shame for someone who professes to be an expert to go around giving so much bad information, and someone in your profession better get all their facts straight before it lands them in trouble, Do you think anyone wants to do business with someone that doesn't even know their own business? I would ask you to show me the proof that what you said is true, but I know you can't because it isn't. I suggest that at your next sales meeting that you have your broker cover the subject so you and the rest ot the office can get it right."

Correct me if I'm wrong but I think it is illegal to wholesale Real Estate.
For a Realtor! :mrgreen: