newbie Q's I'm probably asking too late

[Dave Grosse]

I've got a few here and I'm feeling really stupid asking them!

1. We buy using an option contract. Haven't closed a deal yet, but are getting close. we haven't had any complaints from the banks about using an option contract on the few deals we have submitted. Do we need to record our option with the county? I've read before that it doesn't really do anything, maybe gives you equitable interest(some say it does, others that it does not)

2. What is the interaction/conversation between the Title co. and the C buyer's lender? For instance - when the C lender has a title search run, they will see A homeowner, not me on title. does the title co just say "yeah A is selling to this guy Dave, and he is re-selling to your C buyer on same day."? And will recording our Option contract help with this process?

Thanks and feel free to poke fun at my ignorance

[Ted Akers]

If not the title company someone in the deal does want to explain the transaction to an end buyers lender. If not, you are likely to have many 11th hour headaches and failed closings due to lender title seasoning issues. However, some lenders are starting to allow some back-to-back flips with conventional financing, some based upon 20% down payments. Also, FHA suspending their 90 day no-flip rule now allows you to sell to a retail buyer. (Retail=higher spread). So, more options are starting to present themselves for flip financing other than cash or HML