Selling fixer to relative and avoiding seasoning period.

[Jimmy Chao]

I am weighing some options to help my younger brother buying his first primary with a fixer. I was told by another investor that I will run into a seasoning problem, but i don't see how if i don't plan on refinancing. I just wanted to get some confirmation from BP crowd. What do you guys think? This is the scenario:

I buy a fixer with some hard-money. Before seasoning period ends, I want to sell to my younger brother who purchases with conventional mortgage.

Is there anything wrong with this idea?

[Ken M.]

Quote from @Jimmy Chao:

I am weighing some options to help my younger brother buying his first primary with a fixer. I was told by another investor that I will run into a seasoning problem, but i don't see how if i don't plan on refinancing. I just wanted to get some confirmation from BP crowd. What do you guys think? This is the scenario:

I buy a fixer with some hard-money. Before seasoning period ends, I want to sell to my younger brother who purchases with conventional mortgage.

Is there anything wrong with this idea?

I don't see anything wrong with that. Hard money is a type of business loan for non-owner occupying investors. That loan is being paid off by someone who checks the box on the conventional loan application that they will be occupying the property. Underwriting does their thing with the new buyer. There is no seasoning requirement involved since the property isn't a short sale and it isn't someone buying REO from a bank with a seasoning requirement. And nobody is telling a lie in the transaction.