Is real estate flipping illegal in some states? By flipping I mean, buying a property and selling it within a month or so? I have heard some people saying you gotta wait for a 90 day period before you can sell a property after buying it.
Re: real estate (question)
welcome back chandbeti.
long time ha.
well i think ppl have forgotton you as you are stil waiting for a response. now move back to shor and cric forum.
Re: real estate (question)
don’t know:confused:
I have heard the same that 90 day maybe longer does apply. I think it has something to do with Mortgage rates and locking into them (but a big I think).
^
hey, what about when the transaction is done in all cash?
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*Originally posted by Chandbeti: *
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hey, what about when the transaction is done in all cash?
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^ I saw that one coming too. pun intended
If the transaction was in 'Cash' so to speak,,,then you may sell your property the next day after signing the 'Sale deed' unless there's some hitch in it too. or may it was a "Pagri system" who knows :Pagri:
Conditions are that the property tax is paid off according to the regional
PT laws + Land transfer fee....
Re: real estate (question)
In my experience in MA, you can flip a property as fast as you can. Usually the items that take time and sometimes quite a bit of time is the process from signing of the deal to closing. In one instance, it took a month to close even thou the property was bought by CASH no lenders were involved. BTW, most of the time is spent on title search usually performed by title insurance companies. This step is important to ensure that there are not going to be any problems in future.
Hope this helps
Re: real estate (question)
So, what I have heard is probably a myth- Some states have a law that a property cannot be sold within 90 days of it's purchase be it cash or bank loans( which in itself brings out more complications). And what about this, I have heard a bank won't finance the mortgage to a house which has had a hike in it's appraised value in the last 90 days?
Thanks boston and raindance.
Re: real estate (question)
If the property was purcahsed under market value the bank won't have a problem financing the deal at a higher value. As long as the value of the house can be justified and comparable sales are present within the subjects neighbourhood it isn;t such a big problem. I helped this guy getting loans for investment properties. This was in Oct/Nov. He had purchased the houses below market value. One he sold within a month of purchase for 20k more than what he purchased it for. Two he is selling now at higher values ofcourse. But again in Northern VA real estate is soaring anyway so it's normal for properties to appreciate with months. The same may not apply to other areas as far as frederickburg or Culpepper etc since they are far out and appreciation is slower there. Some states may have restrictions on flipping properties, VA doesn't. Make sure when you get a loan you do not have a prepay penalty or if you do its a soft prepay not a hard one. If you sell under a soft prepay you have no penalty where refinancing will cost you either 6 months of interest or 2% of your remaining balance. Under a hard prepay you are doomed to pay the penalty whether you sell or refinance.
And title search does not take a month. I can get back a title report within two days in my own county! If the title is really messed up, meaning that there are lots of unreleased liens showing up against the property it may take time to clear it up. It's rare for a property to have an actual unreleased lien against it though. Usually if deeds are not recorded in the courthouse(which is the settlement companies job) the title search may come up with outstanding liens but its all a matter of getting the deeds recorded and title is cleaned up. IF the property has a lien against it the bank will not finance the deal unless the lien is paid off. They may arrange for the lien to be paid off at closing by deducting the amount from cash to the seller anyway.
Re: real estate (question)
FF Ji, aap ko tou buht pata hey…
In New York, it takes like 2 months to get an appointment with your financial adviser for re-financing your mortgage. Which idiot put a T in mortgage?
where I live the property values trippled in the last 10 years, I am sure it is the case in all places.
Re: real estate (question)
I love it when FF talks shop. It is such a turn on. grrr… :love: