My husband and I are in just beginning the process of buying our first home to flip. In talking with a woman at the bank she said new lending laws in Ohio require that you own the home a minumum of 90 days before it can be sold. Has anyone heard of this? Can anyone direct me to where I could possibly find more information regarding this issue? Thanks.
The only thing that I have heard that is new in Ohio is that you will get a with a major tax hit when you sell it, this was put in place to stop flippers.
I am not aware of a law that states that in Ohio or any other state, however, there are lending criterias which would prevent a buyer from purchasing the home from you before 90 days. Assuming you finance the purchase, the new buyer's lender would require you to have owned the property for at least 90 days, in some cases 6 months.
You can get around that if you were to pay cash for the purchase, temporarily owner finance via a wrap or lease option, have the property placed in a single asset entity and sell the entity to the buyer, or perhaps utilize a land trust to transfer the beneficial interest in the property.
Do a search for topics on land trusts here on BP for more info on that.
Land Trusts are my specialty. Let me know if you have any questions about how to use a land trust.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing