Posted on: 16th Nov, 2007 08:45 am
If a 1-4 sfr is being purchased in the name of an entity and this will not be homestead property, is there any law that restricts the immediate sale of the property? Just to make this interesting, lets say that the original seller will be buying the property back.
maybe there arent any laws...but lenders have anti-flipping guidelines
"If a 1-4 sfr is being purchased in the name of an entity and this will not be homestead property, is there any law that restricts the immediate sale of the property? Just to make this interesting, lets say that the original seller will be buying the property back."
Please explain the entire transaction.
As banker0679 stated there are anti-flipping laws concerning these transactions. You cannot sell a property to the same group or same people and keep raising the value, if there is no improvement to the property.
Please explain the entire transaction.
As banker0679 stated there are anti-flipping laws concerning these transactions. You cannot sell a property to the same group or same people and keep raising the value, if there is no improvement to the property.
The entity purchasing the property will lease the property back to the seller until the seller is in a position to repurchase the property. The payments received will be applied similar to a "rent to own" program, thus effectivly lowering the repurchase price. This transaction does not appear to fall under the definition of flipping as defined on the HUD website.
hey
cqrix2004......Please understand that i meant lenders not HUD.
HUD has general guidelines but most lenders carry their own guidelines.
They generally have a 6month rule for flipping properties.
They will make the exception if it was a foreclosure, sold from an estate, or you can prove renovations made on the property.
This applies if you're selling for profit....if not...then there arent any guidelines that i have seen
cqrix2004......Please understand that i meant lenders not HUD.
HUD has general guidelines but most lenders carry their own guidelines.
They generally have a 6month rule for flipping properties.
They will make the exception if it was a foreclosure, sold from an estate, or you can prove renovations made on the property.
This applies if you're selling for profit....if not...then there arent any guidelines that i have seen