seasoning of ownership/chain of title - Posted by RP-VA

Posted by JoeS on March 06, 2002 at 20:11:59:

Seasoning is an issue, but one that can be dealt with. It used to be you could do a simultaneous closing, buying, selling and selling the note all in one day. Not so easy to do anymore. I’m sure there are other investors with more years in this business than I who have better plans, but here is my business strategy, for what it’s worth.

When I want to sell a house retail, I buy it outright in the name of my corp. I then spend a couple of months doing minor rehab. During this time I build up my base of buyers. When the property is finished, it will appraise at full market value because it is in excellent condition. I work with a couple of mortgage brokers who are able to do an origination loan for my retail buyer. All said and done, I have title for about 6 months start to finish. That takes care of the seasoning issue for me. Hope this helps.

seasoning of ownership/chain of title - Posted by RP-VA

Posted by RP-VA on March 06, 2002 at 19:59:29:

Would someone please explain these two things to me? How big a deal is seasoning of ownership when trying to sell a rehab/flip property? Will it be difficult for a prospective buyer to get financing to purchase a rehabbed flip if there is no chain of title or seasoning of ownership. This could really be a difficult thing to overcome. How do you get around it. Do some lenders not have a seasoning or chain of title requirement? Any info/advice would be greatly appreciated. Thanks.