Ozone Park, NY · Member since 2017 · 5 posts · 0 votes
i bought a investment property in the state of new york and i plan on flipping it but my mortgage broker told me that i need to hold on to it for a period of six months before i can sell. I tried looking up on the web as to why i would need to hold on to it for that period and im not seeing any information supporting that six month claim. So my question is can i sell my mortgaged investment property in less then six months to lower my holding costs?
Ozone Park, NY · Member since 2017 · 5 posts · 0 votes
8y
lol thanks mike for the reply but thats the million dollar question am i able to sell right away. hell i just found out the broker is making over 6k off of me.
Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 957 votes
8y
@Riccardo Dux, while @Michael D. is probably right, I'd make sure there isn't a prepayment penalty in your mortgage. A lot of commercial mortgages are structured that way.
Investor · San Jose, CA · Member since 2011 · 355 posts · 90 votes
8y
Joking aside - and I wasn't really joking - if the house is yours you can sell it. As @Scott Wolf mentioned, take a look through the loan docs to see if it says anything in there about a pre-payment penalty.
Is this just a regular house purchased in your name with a regular loan?
Investor · New York City, NY · Member since 2014 · 141 posts · 65 votes
8y
Sometimes an institutional seller, like Fannie Mae or HUD, will put a restriction on the timing of your sale, for instance: you may not sell within three months for more than 125% of the sale price. I don't know who you bought your property from, and I don't know if this was in your contract, but this is a common restriction for people who buy distressed properties, fix them up, and then sell.