Does the "Seasoning Period" apply to flips?

Question

I've been learning about RE Investing for about 8 months now. I'm primarily looking at rehabbing a distressed property and selling it outright as quickly as possible.  I've just stumbled across this concept of a "Seasoning period".  I've read other posts about it which makes me think it only applied to refinancing or cashing out of a property you just purchased.   I'm planning to just list the property on the MLS as soon as its rehabbed. Does a seasoning period still apply? (I know on HGTV the gurus say, "I want this rehabbed in 12 days and relisted in 2 weeks!"  Granted, HGTV is not known for being close to reality, but in reality, would you have to hold it longer even though the property is ready to sell?

Trevor Rutherford · Answer

I've seen most seasoned flippers buy around Oct. rehab through the winter months to rid the 90 day gridlock among other things. Banks try to get rid of inventory before new year. Prices may be good, but inventory goes quick.

Sean Blomquist · Answer

@Ralph Stowe it typically doesn't apply to flips.  The only time you may be challenged is if you buy a bank owned property and they put a deed restriction on it.  That means you can't sell it for a profit or encumber the property for more than a certain amount above the purchase price for typically 90 days.  I see fewer and fewer of these now, but they were more common a couple of years ago.  Other than that, you can turn it as soon as possible.  Good luck.