90 day flip rule strong

[Alfredo O.]

good evening everyone. I have a question regarding this 90 day flip rule that is currently preventing any flipper from selling a property 90 days after the deed transfer. Is this something that currently has no strong way of getting around? We sold properties last year without having any issues but it seems like in 2017,  we are beginning to hit some roadblocks. I just cannot believe that if we buy a property and went to flip it in under 90 days that it should be this difficult to actually make this happen. I understand as a rule does not allow you to sell this property to anyone who is obtaining FH a financing or conventional financing. Can someone shed some light on this rule?

[Wayne Brooks]

Which "90 day flip rule" are you referring to?

There are two:

1. If you buy a Fannie REO/short sale there is a deed restriction prohibiting deed transfer (or loan encumbrance) for more than 120% for 90 days, the key being the date of the Deed Transfer.

2. If selling Any property to a buyer using FHA financing, you can't sign the Purchase Agreement with them for 90 days after you Closed on it, or FHA will deny their loan.