All Forum Posts by: Jeff Bodin

I am in South Bay area of CA - Most REOs are "said" to have several offers before we even get to see them. Almost all of them are going over asking.

From: http://www.phoenixpowersearch.com/2009/09/wow-no-more-fha-90-day-waiting-period-on-flipped-foreclosures/

"Prior to September 14, 2009, FHA products were denied to buyers purchasing homes from investors that buy homes, rehab them, and sell them within a 90-day period. Previously, the only option to purchase these homes was through conventional financing (which requires a higher down payment) or a cash-only purchase.

This revision allows home buyers to expand their market when searching for a home and gives them the opportunity to secure a much lower down payment. More investors and buyers will be encouraged to purchase homes due to this major change.
Take a look at the revision:

'Section 203.37a(b)(2) of the FHA regulations, 24 CFR, is hereby waived for a period of one year, September 14, 2009 through September 13, 2010, with regard to sales of previously foreclosed or abandoned properties acquired and resold by for-profit and non-profit entities using funding from and performing under agreements with state and local government agencies under the NSP program.' "

http://www.hud.gov/offices/hsg/sfh/waivpropflip.pdf

We're starting to experience a shortage of homes:

Homes of comparable rate/etc... are (these are pending, not closed sales) - and all homes are now selling at/over asking price (these are within a mile of the house):

List Price Bldg SqFt
399000 2014
379900 1467
360000 2247
285000 1616

The home we're looking at is 1900sf.

The cash is also ours, so no hard money fees (it's either in an R/E, or getting 2% at Wells Fargo).

I'm beginning to understand our attraction to the seller - as he doesn't have to wait for seasoning and he can move on. If we hold for three-six months for seasoning, and get 380K, does it make sense?

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