Flipping - Posted by Jake

Posted by Joe Kaiser on April 25, 2006 at 18:45:02:

Generally, lenders can’t tell you whether or not you can sell your
property. All the can do is make it more expensive to do so.

is there a pre-payment penalty? If not, you’re not in anyway
hamstrung. Of course, your partner’s lender may have some issues
about the flipping thing so you’d want to sort that out too.


Flipping - Posted by Jake

Posted by Jake on April 25, 2006 at 18:30:48:

I have a property I just recently exercised my option to purchase. Purchase price $270,000.00 with $5000.00 dwn and $1800.00 in credits on payments for the last 18 months.Current market value $320,000.00.My wife is doing an 80/20,loan property in escrow as we speak.My partner wants to buy the property from me at full market so I can take out the equity.Problem is my lender said I have to hold on to the property for six months.Any way around this pls help.

Re: Flipping - Posted by Charles Parrish

Posted by Charles Parrish on April 25, 2006 at 23:21:07:

You could cancel your loan and assign your contract to your partner. He will give you your down payment and credits back plue the assignment fee. Why would he pay full market value, how smart is your partner, or does he desire to live in the building.

I would think that you and your bride would give him a little break.


Re: Flipping - Posted by dutch

Posted by dutch on April 25, 2006 at 22:22:35:

Could you just assign your option to your partner for your equity, and let him close on the deal?


Title Seasoning… - Posted by JT-IN

Posted by JT-IN on April 25, 2006 at 18:47:11:

This is called Title seasoning. They do this to avoid having someone buy a property, then sell it to their partner immediately, allowing them to take out their equity. (Sort of a joke, but sorta not… it is just this type of thing that they attempt to stop-gap).

The good news is that not every lender will have the same requirement. Shop them and find another lender who doesn’t require 6 month seasoning. Suggestion: When you talk to the next lender, tell them that it is a flip, and make sure that they have NO seasoning requirements…? If they do, then find another one, until it meets your objective.