Cirumvent the 90 day Fannie Mae deed restriction

[Uriel Gonzalez]

I have heard you can accomplish this with a Trust. But how do you make a trust? Now considering I get an REO under contract and plan on wholesaling it and at what point of the transaction do you make it? Before locking it up?? Any guidance would help, I know the bare minimum as to how it can be done.

[Wayne Brooks]

The 90 day restriction is for "more than 120% of the purchase price". 123 LLC buys, immediately sells to 1234 LLC for the same price. The deed restriction doesn't apply to 1234 LLC, so 1234 LLC can immediately sell it for whatever it wants, so the current "creative" investors say. Does common ownership of 123 LLC and 1234 LLC create "circumvention of the intent of the restriction" and could they come after you for that? Perhaps.