All Forum Posts by: Chris Bounds

Ok gotcha. Just wanted to make sure I wasn't misunderstanding anything. I offered the selling agent to delay execution for a higher option fee since the date is near. I've heard of other investors do a lease-purchase if the date is further out.

@Wayne Brooks

I just did that. It is stating the executed contract date. 

http://www.ecfr.gov/cgi-bin/text-idx?rgn=div8&node...

1. "(b) Time restrictions on re-sales—(1) General. The eligibility of a property for a mortgage insured by FHA is dependent on the time that has elapsed between the date the seller acquired the property (based upon the date of settlement) and the date of execution of the sales contract that will result in the FHA mortgage insurance (the re-sale date). The mortgagee shall obtain documentation verifying compliance with the time restrictions described in this paragraph and must submit this documentation to HUD as part of the application for mortgage insurance, in accordance with §203.255(b)."

It is my understanding that the contract execution date is what is used:

https://www.linkedin.com/pulse/fha-flipping-policy...

(b)Time restrictions on re-sales—(1)General.The eligibility of a property for a mortgage insured by FHA is dependent on the time that has elapsed between the date the seller acquired the property (based upon the date of settlement) and the date of execution of the sales contract that will result in the FHA mortgage insurance (the re-sale date).

@Wayne Brooks, so the contract execution date has nothing to do with it? As long as they wait to submit their loan application on the 91st day it will be clear?

Question for flippers and the 90 Day rule for FHA financing: Can you enter into contract prior to the 91st day, but wait to execute on the 91st day?

Example where the 91st day is 11/10/2015

A buyer comes along today (10/27/2015) and offers full price using FHA financing. They want a 10 day option for $100. You agree to take a $200 option fee from the buyer and to set the execution date for 11/10/2015.

Will the lender have any issue with this? I'd assume as long as the loan application isn't submitted until 11/10 they would not have an issue.

 Good clarification Rick.  Internally, I understand that. It might be a good idea to make the terminology change now for the purpose of systems design (for 3rd party training later on).

 That's hard to say. I wouldn't say either is better than the other really. @Michael Quarles at YL usually suggests the variable approach. I've been using that strategy. 

@Fitzgerald Hall, I sent out postcards on the first batch of the bigger list.  I think I got 2-3 calls total and they were not deals.  The next batch with zipletters I got a ton more calls and specific feedback stating they called me because my letter was different. That was the decision point for me to scrap postcards, at least for an absentee list in my area.

@Kyle CabralMy list came from list source.  I did not filter for years owned on this last run. Only equity and median price range. Area is fairly large, West to Southwest Houston which is my backyard. It's been a successful run so far.

@Owen Dashner, with only 5 deals so far from this campaign it wouldn't be accurate to give an average profit.  We have 2 flips that have not sold yet. Est. profits for those range from $15-30K.  We've wholesaled the other 3 making anywhere from $2000-20,000.

@Fitzgerald Hall, we tried postcards but the response rate was unbelievably low. It's cheap so every wholesaler in my area that wants to do direct mail uses them. I want to stand out. That change alone increased our response rate.  We may do them here and there to change it up, but it is not a primary mailer choice for us currently.