Flipping in CA

Bird Dogs, Wholesaling
1

Hello all and Merry Christmas!

So it looks like my flipping Journey will begin soon.

A little background. My father is a contractor and I have a few years working with him and also in the Real Estate business.

I have noticed that there are many FHA buyers, well, buyers in general and what I’m thinking is buying properties, rehabbing, and selling them (hopefully to first time buyers). I want to stay in the lower range 200k (-), but in California there is a FHA No Flip 90 Day Law. Has anyone been able to work around this? I was thinking of letting the new owners move in, pay rent and then complete the purchase contract once the time period is over. This is just an idea.

I understand there are plenty of cash and conventional buyers in this market but my main goal for flipping is to help out the discouraged and frustrated FHA buyers.

Any Input would be greatly appreciated.

Thanks

2

Hi,

I started investing in California as a rookie in 1979, and spent 25 plus years investing and flipping in southern california.

The market and the conditions have changed a lot in those years.

FHA is Federal Government, and the 90 day rule applies to all 50 states. Basically this law say’s I can not close a sale escrow until I have owned the property for 90 days, but generally when we flip properties is takes us between 6 and 8 weeks to complete a full rehab and generally 45 days for a normal escrow period and close of escrow.

Our fastest sale was 94 days which sold FHA and although the closing was delayed until after the 90 day rule, this is the closest to 90 days we have come.

Ninety days of ownership before closing to a new buyer!

Good luck,

                                      GR