Holding

[Maryann L.]

We may have to hold a property. I don't want to but every offer on the property is part of a housing program in our area that people are part of. This housing program offers a 0% down to 3% down. Problem is you can't change title for 30 days.

I have only held a property once. It was a semi nightmare and we lost a lot of money, BUT WE STILL came out on top. So I'm not complaining, but let's just say good old FEAR is coming at me again.

My biggest concern is when the appraisal comes in. Has ANYONE seen an appraiser really question why a house that may have been bought at 130,000 is selling at 190,000 in less than 60 days? I'm not opposed to painting and sprucing up either. Actually, I'm pretty sure I will do that.

[Justin S.]

Yes, I see it all the time. I'm assuming you met the BPO agent, you are also going to want to meet the appraiser and show him all the work you put in the deal. The problem is I think this is a short sale flip so not much has been done to the property, even though you cleaned up the title and stuff like that.

I would suggest you have two exit strategies. 1) Flip to your end buyer, which you have and 2)Be prepared to rehab it and sell it yourself.

Is $130K buy price good enough to do a rehab? Could you wholesale if needed.

This is the main reason I'm exiting short sales, is because you are now required to hold the property and then explain the large profit margin. I only like to hold properties that I know are good deals independent of the end buyer. Creating a negotiation spread is no longer good enough unless your end buyer is paying cash.