Posted by David G. on November 25, 2003 at 20:22:50:
One way to avoid the seasoning issue is…
Sign a contract with seller for a discount price. That contract should have a clause that says that you can assign your position to another party for the same price or higher. If its higher… seller agrees to give you the difference at closing.
Sign a contract with your buyer where you are selling the home for full value.
3.Assign your contract to the seller. Now your seller can deal with your buyer. This document should be notarized, in case you need to cloud title.
Go to closing and collect the difference.
This is one of the techniques taught by Paperbiz.com for $7,000.
More questions re: possible 1st deal - Posted by Sheri in OK
Posted by Sheri in OK on November 25, 2003 at 17:02:17:
I posted last week about a possible 1st deal, but I was concerned about getting financing because we have alot of debt. I’ve spoken with some lenders, and one thing I’ve been hearing is that when we go to flip, many lenders will have an issue with “seasoning”. I’ve read about this on this website but would like to know if it’s a big problem when you try to flip a house quickly, we’d like to flip within 4-6 months. I did find comps for this house and the numbers look very good, again our only problem is getting financing. The owner is elderly, and needs cash quickly to move into an assisted living community, so that doesn’t allow for too much creativity. Thanks for any advice or suggestions.