And it sounds like this only applies to flippers or wholesalers using traditional financing to flip a property? Is this correct? If this is the case, it is not the total end of the world because there is always 24 hour flash funding that is not through a bank. But that is if its the case. I read the link posted and that really sounds like its the case.
24 hour flash funding that is not through a bank.
Won’t work because the problem is not on your end.
The problem is for your buyer not being able to get a loan on it because you are making too much money.
For example, I bought a duplex a couple of weeks ago that my wholesaler bought for 10K. He assigned it to me for 25K. If I were getting a loan, he would have had problems. But I paid cash so there was no issue.
This is all very new to me as well. Most people don’t even know about it yet. And I thought you were a flipper. 10K for a wholesaler is fine.
But If I got a home under contract for $200k I would resell it for $230k or something like that to cover the transactional (24 hour funding) fee for double closing, the closing costs and then what ever is left I would.
You may want to consider assignments or simultaneous closings so you don’t eat so much into your profit. And in that scenario your buyer will have no probs with the bank. They would only on your great deals.
Thanks for the response Hooch. Right now I have a lot of cash investors. I was talking with an agent I know to collab on short sales. I buy them and flip them to his first time homebuyers, so that may be a problem. Because they would use loans.
You are absolutely right - to quote my father, “I will make an honest living as long as the government will allow me too. After that…” well, I’ll let you fill in the blank.
Too much government, supported by too many special interests, feeding too many lazy mouths!
(my two cents)
Have a wonderful weekend, anyway.
This is what happens when the government interferes with the free market. How’s that “Hope&Change” treating ya? :flush