Real Estate Investor · Toronto, Ontario · Member since 2010 · 413 posts · 114 votes
14y
Inventory levels were much higher 2 years ago. So now I can't pick the best of the best out there. Those properties now get bid up pretty fast and no profit is in them. So I'm having to purchase some properties that I wouldn't even look at before.
Investor · Reston, VA · Member since 2011 · 683 posts · 191 votes
14y
I think the answer is: "it depends". I closed on the sale of a flipped short last month. It worked out great. I got word yesterday that the bank has approved another short that I have under contract. On the flip (no pun) side, I have had lenders come back with outrageous "new" BPO's. The shorts are definitely closing but many of the prices are much higher than 2-3 yrs ago.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
Most of the big lenders these days will impose resale restrictions when you purchase a short sale. BoA and Wells will make you hold for 90 days, and Chase will make you hold for 120 days unless you do "substantial refurbishment." Most other medium and large lenders are imposing some sort of restriction as well.
So, make sure you read the short sale approval letters you're signing if you're planning to do a quick flip...
Houston, TX · Member since 2011 · 50 posts · 8 votes
14y
The deed restriction period depends on the investor holding the note. I have had approvals from BOA requiring only 30 days. All my Chase short sales have required no holding period. I have wholesaled them the following day after buying. It all depends on if you are dealing with Fannie Mae, Freddie, FHA e.t.c
Some loans are easier to short sale than others. It all depends on who owns the note NOT the servicer.
Investor · Reston, VA · Member since 2011 · 683 posts · 191 votes
14y
I got another short under contract over the weekend. It will be a flip. I'm not sure yet of the restriction period. It doesn't really matter much to me. I pay cash on flips and the carrying cost is minimal. I've found that the only way to get a decent deal is to go directly and immediately to the lister. They will assign you to one of their partners.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
Also, regardless of specific deed restriction period, make sure you read the language in the approval letter (that you'll be required to sign) very carefully. There may be language that essentially says you don't have any other agreements in place (as the buyer or seller) at the time of closing -- which means that if you have a contract from an end-buyer, you are committing fraud.