All Forum Posts by: Randy Bearden

I'm not sure that adding a bath in the basement without finishing the basement would attract too many more buyers.

With the numbers you show, I don't think finishing the basement would increase you profit enough to justify it, that is if the ones that are selling quickly are also 3/1s. If the other comps that are selling are 3/2s I would definitely finish the basement.

We knew going in we may have a little trouble based on the comps in the area

Hey Karen,
I presently own 2 SFH rentals which I manage myself, both are homes I lived in previously. I started an LLC in mid 2010 for the purpose of investing in rehabs. I am under contract to sell my third rehab with closing set for the end of February.
My plans are to continue investing in rehabs and eventually buy more SFH to hold long term.

Welcome Joe. This is a great place to ask questions and learn. Lots of good people here.

I appreciate everyone's response. As of this afternoon the buyer's lender has agreed to continue with the loan process as long as we sign a new Purchase and Sale agreement when the 90 day seasoning is over and we extend the closing date to the end of February. The 91st day of seasoning will be this Friday.

I talked with several lenders today and the general answer was "even though there is a waiver on the 90 day rule they still must follow the rule on FHA loans due to lender overlays they have in place." I guess it's for CYA purposes.

I will visit several other lenders next week to see if I can find one that recoginizes the waiver so I can send them some business in the future. In the mean time if any of you know of lenders that honor the waiver, please let me know.

J Scott..You said you closed dozens of these last year. If you have a lender you are using on these I would appreciate some names. I am in the west metro Atlanta area.

Again, thanks to all your responses.

We purchased our 3rd rehab property in the middle of October. Finished the rehab and put on the market in the middle of December. It went under contract Christmas Eve. The buyer's lender is backing out due to the property going under contract during the 90 day seasoning period. MY BAD ... My RE agent did not realize we were still in the seasoning period. MY BAD AGAIN ... I did not tell RE agent because I thought the 90 day rule had been waived by HUD for FHA insured loans through 2014. The two things I have found during research are; (1) the 90 day rule has been waived and (2) lenders will not honor the waiver.

Now for my questions. Are there any lenders out there that will do financing on a property in the 90 day seasoning period? What are other investers doing in this situation?

Thanks to each of you for your comments. Your responses seem to verify what I thought was going on. Makes me realize I just need to get out there and keep chopping wood.

This is my first post, please bear with me. I’ll try not to make a total idiot out of myself.
A little about myself. I retired from a career with a transportation company after 38 years of service in June of 2011. For many years I have talked about flipping houses and figured now I would have plenty of time and no excuses. By the end of that June my brother-in-law and I had set up an LLC and purchased our first flip, a HomePath property. We rehabbed the property and sold it in December of 2011 for a nice profit. We immediately began looking for another property and purchased our second property in February of 2012 which was a REO. We rehabbed this property and sold it in June of this year, again making a nice profit.
We know we can do well in this business, but it’s going to take more than one or two properties a year and we are prepared for multiple rehabs at once. “So what’s the problem?” you may be asking. Here it is. We have been very active making offers on multiple properties since we sold our last one. Almost all of these properties have gone to highest and best status soon after our initial offer, even the properties that have been listed over 90. We have lost all the Highest and best bids. The offers we are making are all cash, closing in two weeks and are very much in line with the first two properties we acquired. Out of over 30 offers, we have yet to get one under contract. Many properties we lost to H&B will be back on the market within one or two weeks. We go through the offer process again with the same results.
Are other active investors experiencing this issue? If so, what are you doing to get properties under contract? All comments are welcome, good or bad, even if it’s to tell me to stop whining or to give me a kick in the keister. I still have a lot to learn.