The goal is for the home prices to go up during that time, so the investor can resell the house, without ever closing on it, for a $30-50k profit.  

I am very concerned with area and the ease of resell after the rehab.

Our relationship is such that when they have a potential property, we discuss it in detail and i give them the price range that i am a buyer for before they make an offer. you have to be careful on contract assignments. in my experience, the majority of banks will not allow an assignment on a foreclosed property period. most title companies will only do a double close if the buyer is paying cash. another scenario that just happened to me for the 1st time in the past 200+ deals is that i bought a foreclosure but my agent didnt inform me it was a HUD home. i paid $25k cash and had it rehabbed and sold in 3 weeks to one of my buy and hold investors that was also paying cash but my title company informed me that i couldnt resell it for 90 days for more than $30k.my deal is still good, i just have to wait 60 more days to get paid.

He needs to close.And I know technically buying it really cheap with cash or hard money and then reselling is still technically wholesaling, but I don't think that's his goal.

The one's I've seen require that you can't resell or refinance it for more than 10% of what you bought it for within 90 days.I agree that realtor's throw out the "illegal" word when they don't understand something.

Hi I just want to make sure my numbers are correct on this deal before I put down the EM and sign the contracts.I pulled comps myself(I`m not too confident in my ability to determine ARV on my own yet).ARV is around $270K.Purchase price is $10k.Repairs will cost between $70K-$100K,contractor said it will not exceed $100k.So I`ll be all in for $110k.I figure if I can get a HML I could easily resell for $200k and gross $90k on the deal.I need to make sure my ARV is right though.Could somebody help me out with that?

what are the current problems with the house.as for reselling at 50% higher or your purchase price, you will have to be cautious that if you have financing on table you will have a tough situation as justification as for the 50% mark up

Looks like you put about $10K in rehab and are reselling about $60K+ above purchase price...those are going to be red flags to both conventional and FHA underwriters, especially if you're selling less than six months after purchase.That said, if the market clearly supports the value, hopefully it won't be an issue...good luck!

If I'm able to buy a property, all cash, and then resell it for a fee, what are the downsides?

Department of Housing and Urban Development.If it all works according to plan, the result may be that cities have an easier time buying foreclosures, redeveloping them and then reselling them to homeowners in neighborhoods hardest hit by the housing crisis.It also gives communities an upper hand in buying a foreclosed home cheap, before it's snapped up by the investors that already are starting to surface in some neighborhoods.