Property flipping is a practice whereby a recently acquired property is resold, often for a considerable profit. Most property flipping occurs within days or a few weeks of acquisition and usually with only minor cosmetic improvements, if any. While there is nothing inherently illegal with selling properties within days of acquisition, some of these transactions are questionable because the condition of the property is misrepresented and/or the value of it is artificially inflated. Sufficient seasoning has been determined as 91 days post the recording of the new property owner. Again, the purchase agreement for the re-sale of a recently obtained property must be executed 91 days after the recording of said property unless the sell is an FDIC insured institution.

 

 

Happy Selling!
Justin Perry
Sr. Underwriter
Gateway Mortgage Group
1255
W. 15th Street| Ste. 540| Plano, TX 75075
972-908-3390 ext. 125| 918-392-8349 eFax

2/26/2010
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