Need quick answer on Funding a Sale...

[Jeff Bodin]

My wife and I have an offer on an R/E deal in the SF Bay area of California.

Out-of-town investing group picked up an REO property for a little over $200. They put money into it and fixed it up. We have it (almost) under contract for $310K - Cash deal.

They want to close quickly, and aren't that familiar with the area. They're turning down other non-cash offers in the $319 range.

R/E analysis shows similar homes going in same area for $360-375K. The REA we're working with feels confident it's closer to 380-400K.

Our plan is to take it off of their hands, and sell at a price closer to the market - quickly.

However, we were told that if we bought it - in order for us to re-sell, we would have to hold it for six months in order for any buyer to get funding on it. Does this make sense?

How would anyone flip properties with those type of restrictions.

(New to this forum, btw - looks pretty active).

Thanks.

- Jeff