Posted by phil fernandez on April 18, 2002 at 19:28:02:
Your problem will arise with the seasoning issue. Many lenders today require that you hold the property for 6 months to a year. Check the archives and type in the word “seasoning”. There you will find many discussions on this issue.
A realtor only charging you 1/2% commission , c’mon now, is that really going to happen.
Does the previous sale hurt the new one? - Posted by Lisa
Posted by Lisa on April 18, 2002 at 19:01:11:
I am interested in purchasing single family homes then turning them for QUICK profits. Hopefully selling them even before escrow closes however, if I have to close first and take title BEFORE I re-sell wouldn’t the last sale (the one I just bought) show up on the comps? Wouldn’t it be hard to turn around and mark up the house $50,000 or whatever and put it back on the market the next day? Also, I found a realtor that will put my lising in the MLS for a 1/2% commission but do you think it will be hard to “re-sell” right after this one closes since it was in the MLS at a lower price just yesterday?
Re: Does the previous sale hurt the new one? - Posted by Kristine-CA
Posted by Kristine-CA on April 18, 2002 at 19:37:40:
Lisa: if you assign your purchase contract and let your buyer close, there is no public record (unless you want there to be one) of what your purchase price was, but of course your buyer is aware of what you paid.
If you close, then indeed what you paid gets recorded and is the comp and this seasoning issue that Phil mentioned does seem to be coming up. If you have a cash buyer, it doesn’t matter, but for your buyers who need lenders, I guess it could be a problem.