FHA/Wells Fargo - Hold time & Profit

FHA/Wells Fargo - Hold time & Profit

Real Estate Investor · Gainesville, GA · Member since 2009 · 241 posts · 34 votes

I've been working on this SS for a while now, a fixer upper in a great & desirable area !! I plan not to do any work, maybe cleaning - that's all. Based on what the bank is telling me I believe I have a pretty good deal in my hands.

Is 30 days the minimum amount of time required to keep this property before selling? Also, Is there a limit or amount that I need to stay below as far as profit goes? Ex:: Bought the house for $90k and one month later sold for $140 or more?

Thank you.

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  • Real Estate Investor · Member since 2009 · 88 posts · 48 votes
    15y

    Was the original loan an FHA deal and are you going to try to attract and FHA buyer?

    If so FHA is going to want the net to be 88-90% of what the BPO came in at.

    They will also put stips on the sale side if it is within 90days of the first transaction.

  • Real Estate Investor · Gainesville, GA · Member since 2009 · 241 posts · 34 votes
    15y

    Just received the SS approval this past Friday :)

    Yes, the original loan was FHA & I am trying to attract Cash Buyers instead of FHA.

    NO STIPS OF ANY KIND SO I CAN UNLOAD THIS PROPERTY FOR A PROFIT AT ANYTIME.

    Thanks anyway.

    L.Souza

  • Specialist · MA · Member since 2009 · 858 posts · 306 votes
    15y

    If you sell to a cash buyer, there should be no issues. If you sell to an FHA buyer, you would have to hold at LEAST three weeks from what I've seen.

    Good luck.

  • Banker · Fort Lauderdale, FL · Member since 2010 · 22 posts · 13 votes
    15y

    FHA Flipping Rules
    If you have rehabbed a property dont be shy of an FHA borrower/buyer. If within 90 days - you will need 2 appraisals (usually borrower only pays for one), an inspection report that meets guidelines, be prudent if the seller could show/say what was done on property to substantiate value.

    Depending on price range but opening up the buyer world to folks who need/have financing surely increases this pool of potential buyers.

    I am in South Florida and values as you can imagaine are all over the place. Folks here have been doing well flipping properties.

  • Real Estate Investor · Member since 2009 · 88 posts · 48 votes
    15y

    Congrats on the approval.

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