120% only if you sell your flip before 12 months?

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120% only if you sell your flip before 12 months?

Stephen Lofthus
Real Estate Investor · Westfield, IN · Member since 2014 · 94 posts · 10 votes
Is this correct? Scenario: If you purchase a home for $100,000 you are only able to sell this home for $120,000 within the first 12 months of signed contract?
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  • Brit Foshee
    Investor · Fort Myers, FL · Member since 2012 · 462 posts · 200 votes
    12y

    No.  Only if your contract stipulates this.  You can sell for whatever you'd like unless your purchase contract states otherwise. 

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    12y

    You're likely confusing the FNMA REO/short sale resale restriction which prohibits a resale or mortgage for Moore than 120% of your purchase price, for 90 days.

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  • Stephen Lofthus
    OP
    Real Estate Investor · Westfield, IN · Member since 2014 · 94 posts · 10 votes
    12y

    @Brit Foshee thanks.

    @Wayne Brooks  thanks

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  • Account Closed
    Real Estate Investor · Houston, TX · Member since 2014 · 42 posts · 5 votes
    12y

    I agree with Brit Foshee. 

    It is only based upon stipulations in the contract. 

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