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All Forum Posts by: Christopher Johanski

Christopher Johanski has started 1 posts and replied 6 times.

Post: FLIP FHA-REVERSE ASSIGNMENT???

Christopher JohanskiPosted
  • Real Estate Consultant
  • Mpls, MN
  • Posts 8
  • Votes 0

Dory; I really appreciate the input, very usefull, considering my concerns with the legalities of such ventures now a days. My challenge is to attempt to secure a profit of the flip without waiting the 90 plus days, there are some risks that concern me that would make me feel uncomfortable...although client has 2 jobs, one never knows about downsizing and although nothing is set in stone, job stability is always a question...that being said, end buyer has backup with friends that need place and could lease with her residing...NCA? Want to make sure buyer can't go around, I've heard horror stories :(
Thanks for all your help.
CJ

Post: FLIP FHA-REVERSE ASSIGNMENT???

Christopher JohanskiPosted
  • Real Estate Consultant
  • Mpls, MN
  • Posts 8
  • Votes 0

Scott, I must say, it's rare for me to communicate with someone who is creative in there thinking and solution oriented at the same time...most people would simply say, "can't"...this word should be abolished from the dictionary, anyway, your solutions seems quite applicable, have you ever done this? I'd like to ask a few more detailed questions please. For example, let say I can buy this house for 210k, it's appraised value is 240k and that's what I can sell it for, to my end buyer, 240k. Before I "gave up" my end buyers info., would one submit an option contract with offer to seller, then, after offer of 210 accepted, explain to seller the financing obstacle, but also explain the solution. The transactional funding will not go thru without end buyer goes thru. I'm sure your aware of this type of funding. So when offer accepted, maybe, for example, offer 240k, and have them sign a Promissary note for 25k, so they, the seller is making 5k more, but how does one "secure" the 25k? Can I make that the promissary note a 1st note or wrap as I don't want to be in 2nd position and maybe get taken advantage of? I'm sure I can't be in first position, but wrap it some way, or secure with house? How do I file lien on property where the seller is obligated for payment and not the new homeowner, my endbuyer? I appreciate any light you can shed on your solution...and I must say, I'm impressed with it :)
cj

Post: FLIP FHA-REVERSE ASSIGNMENT???

Christopher JohanskiPosted
  • Real Estate Consultant
  • Mpls, MN
  • Posts 8
  • Votes 0

Dory; You raise the most pressing questions, especially w/ FHA lenders not allowing or considering certain fees, I've seen them not allow a $150 dollar real estate agent marketing or listing fee, something like that, but my point, if they are that picky with a 150 dollar fee, I can only imagine the wrath I would receive on a 30-40k "finders" or "assignment" fee :) However, to play devils advocate, I would have the seller sign a simple "invoice" for the assignment fee, BEFORE I submitted the end buyer, in addition, the transaction would be null in void if this fee was not paid out of seller's funds. But, I still feel the same way you do, and have more doubts as to the FHA lender still accepting it, even if it meets all requirements. BTW, is there a FHA limit on assignment or finder fee's? Does it fall under the same structure as seller concessions at 6%? Is there a private money lender or hard money lender that you know that is competative that can lend money 90-120 days to absorb the seasoning issue?

Post: FLIP FHA-REVERSE ASSIGNMENT???

Christopher JohanskiPosted
  • Real Estate Consultant
  • Mpls, MN
  • Posts 8
  • Votes 0

A real estate attorney who is a type of person who is "solution" oriented and thinks out of the box, told me that I could do a "reverse assignment" to alleviate the seasoning issue when flipping to an FHA end buyer. Here's how it works, and I'd like to hear anyone's input on the possiblity of the end buyers FHA lender doing this also. The investor offers to buy property for "X" dollars, lets say 200k. The appraised value is 250k. The Investor then finds a end buyer to purchase for 240k. The Investor does one of 2 options: 1. Backs out of transaction, due to financing or inspection addendum., or 2. offer's to "assign" his buy contract from the end buyer to the seller where the seller would get 2,000 dollars more but pay the Investor a facilitation/finders fee (whatever name you want to put to it for fee) and allow the seller to close directly with the end buyer. Reverse assignment. So the seller receives 240k but pays the investor $38k facilitation fee and received 2k more in the end. Would a FHA lender allow this? Also, If limits are put on real estate commissions, and seller carry backs, or seller paid closing costs, what "fees" are allowable under FHA guidelines that allow larger fees or fee's over 3 or 6%? Of course this is assuming the property has a legitimate real appraisal that is approved by the lender. Thank you.
cj

Post: How do I collect a fee?

Christopher JohanskiPosted
  • Real Estate Consultant
  • Mpls, MN
  • Posts 8
  • Votes 0

Nationwidepi, wouldn't Chris still have a problem with seasoning? I do have a title co., that will do these double closing and I have transactional funding source but I have this exact problem with a property that a seller has agreed to sell to me for 210 and my buyer has agreed to buy for 240 but the end buyer has a pre approval from a FHA lender, can't go to conventional lender becuase was manually underwritten that allows end buyers better deal than any conventional. Can i option contract it and flip in one day to fha then? The end buyer is happy to pay me the 30k fee from the seller's proceds but I dont think FHA will allow? Thanks.
cj

Post: JUST CLOSED A REO FLIP!!

Christopher JohanskiPosted
  • Real Estate Consultant
  • Mpls, MN
  • Posts 8
  • Votes 0

Andre, I just looked up the 24 CFR 20337a;
http://www.hud.gov/offices/hsg/sfh/ins/waivflip07.pdf
It states only to be used in states with disasters, like Katrina or Louisiana. Can this be used in ANY state, MN? Also, do you have an actually copy of the waiver? It would sure help if you did.
Also, my biggest concern, the PAYOUT? If I flip the same day via a double closing, will any FHA lender pay out a 30-40k spread as a facilitation fee?
Thank you.
cj