Fannie Mae/Freddie Mac Question

[Jarcelyn Dorsey]

Can you wholesale Fannie mae or freddie mac homes????

Jarci
Thanx in advance

[J Scott]

Originally posted by Bill Gulley:

Hi, allow be to tweak this a little, 20% profit, you could buy a 100K house, put 40K in it and sell it for 160K. I believe it's also 90 days to conveyance, not contracted....Bill

Nope, not 20% profit, actually 20% above *purchase* price...in fact, it doesn't even say "20%" anywhere in the addendum, it refers to a specific dollar amount, which is 20% above the purchase price.

Here is the exact wording from the FNMA addendum:

"GRANTEE herein shall be prohibited from conveying captioned property to a bonafide purchaser for value for a sales price of greater than $____ for a period of ____ months from the date of this deed."

The asset manager fills in those two blanks (hand written), and in most circumstances the $ amount is exactly 20% above the purchase price and the time period is 3 months.

The only exception to this is when they forget to fill in those blanks (which happens about 20% of the time in my experience), in which case there is no restriction.

And yes, you can put the property under contract for sale at any time...you just can't close for 3 months...