All Forum Posts by: Tim B

My frustration is - there is a growing demand for renovated houses in the Minneapolis market and requiring 90 day seasoning just slows down the process. Buyers are getting a sense that we have reached a price bottom and are out buying again. Very few buyers want to take on a rundown REO. There is a definte need for rehabbers to fixup REOs.

I recently resold an REO - my deed took 30 days to record - 1 day prior to the resale closing - apparently the county is so backed up on recording deeds. My buyer used conventional financing so 90 day seasoning was not an issue.

Chris - I think factoring 6-12 holding period is to long. The holding costs will add up and it's too expensive to carry a big inventory of properties. Plus I need the cash to buy more REOs. We need to find finacing to flip these properties - sell them and move on the next.

The reality is with a short term lease if the buyer wants out - they can get out with their deposit. To get them out of the house and resell it - the buyer needs to sign a cancellational agreement - which usually means returning their deposit. The big deposit is more a psychological commitment.

There must be some lenders willing to finance these flips, once renovated - will check with my local investor group for ideas. That 3% down FHA is important and I guess we just have to figure a 90 day holding period into the cost of during these flips.

The market is turning and there are plenty of end user buyers for fixed up REOs - they don't want to buy a fixer. Lots of REOs to buy and flip - we just need the financing to resell.

I think staging works in all price ranges - houses sell faster and for more money staged - don't waste your money on pro stagers - too expensive - buy nice small furniture on craigslist and move it from project to project.

As far as putting buyers in before closing and doing a short- term lease - be careful - I did this one time and ended up with a tenant to evict and a house to rehab AGAIN! See the topic on 90 day seasoning.

Your right that the 90 days starts after the deed is recorded and our county is so backed up it takes 30 days for the new owner to show on the records.

Reluctant to do a short lease - buyer moves into property prior to closing then nit picking property and backing out of purchase.

I'm not wholesaling but selling to end users and have not had a buyer in place to do a double close. Several times in multiple offers - I pay cash - get a better price on the REO - then resell to one of the other losing bidders.

Even conventional financing lenders are very suspicious of flipping - we had to write a letter to Wells Fargo declaring we had not purchased the property with the intention of flipping it - I need to find other lenders willing to finance quick resales.

Purchased a fixer and someone offered me $15,000 more to buy it as is. Since I just closed on the property - how can we get around FHA's 90 day seasoning requirement.

I just did this on another property - bought an REO and sold it immediately. My buyer used Wells Fargo conventional loan and they were reluctant to finance the deal. Wells would only finance up to the amount I paid for the REO - requiring my buyer to come up with additonal down payment.

If your flipping or rehabbing and reselling in less then 90 days how do you finance the resale - without using hard money?

Already waived the inspection contingency. Can not think of any other contingencies - any ideas.

Contract states seller can sue for actual damages or specific performance. How often does this actually happen?

Has anyone had to back out of a cash purchase and then sued by the seller? Seller has no deposit and only 3 days after signing the purchase agreement, no inspection contingency.

Doesn't seller have to sign cancelation agreement to resell property.

Shane, your right to be concerned about why the basement did not drain - make sure you checkout the sewer. It could be a more expensive fix then repairing the frozen pipe damage.

In my situation, a cash purchase, the buyers title policy is calculated based on the full purchase price(no lenders policy) - over $1000.
Tilte opinion $125