Fannie Mae flip

[Herb V.]

Any words of caution when flipping a fannie Mae property? I figure I'll use an LLC and double close. Thanks

[J Scott]

Originally posted by Alex Locklear:

The problem I'm seeing is trying to figure out how to get my buyer (retail buyer) to use the lender I need them to. Should I incentivize them somehow? Maybe offer a rate buy down?

First, there are a few big banks (Wells Fargo and Suntrust, for example), who are doing sub-90 day FHA loans...so you don't have to go with a smaller bank if you don't want to...

That said, I almost always have my buyers use a regional bank near me, as my broker has a great relationship with the underwriters there.

I incentivize my buyers to use my broker/lender with the following:

- I will pay for all appraisals
- I will pay all closing costs
- I will return earnest money if the loan can't get done (through no fault of the buyer), even if it's past the financing contingency date
- I let the buyer know that we can get an FHA loan done in 3 weeks in most circumstances

For the resales under 90 days, nearly all of my buyers use my broker/lender...once they understand that their lender probably can't get it done (and mine has done it dozens of times), most buyers tend to be pretty reasonable...