Getting around Rapid Aquisition

Real Estate Investments in Arizona is still a booming market and I am constantly dealing with investors with the situation below. I know there are ways around this.

I am working with an investor who has snatched up about 8 properties this past year. He is looking to either purchase another one or refi some of his investment properties to 90%. None of these properties, however, have not been seasoned on title for a year. One way I considered to get around the rapid aquisition was if he has been a land lord for two years we could say he has property manager status and that works with some investors. I am looking to get him as little money down, basically 90% or above. I have looked into different investors, but I am running into rapid aquisiton issues. Also if I could do a cash out refi on any of these props he would love to go to 90%. It’s a bit prickly. Any ideas or avenues I may not have considered would be greatly appreciated

I am also a mortgage underwriter in addition to being an investor. Conventional lenders no longer require seasoning on cash out deals. Of course, there may be the occasional lender who does still require it, but FNMA and FHLMC no longer have any seasoning requirement. If you are looking at a drastic increase in value from the purchase, simply make sure your appraiser explains why. If you bought the home as a preforeclosure for $100,000 and the area supports $150,000 then you should have no problem doing a cash out using the $150,000 value. If you bought the house and it was in really bad shape and you’ve fixed it up, you can explain a value increase in that way as well.

The whole point to the old seasoning requirement and the new 3 year sales history disclosure that appraisers are required to disclose is to prevent lending on inflated values.