There is no single answer for this question because the rules are changing monthly.
In the old days if an investor kept a home for 6 months they could make unlimited profit. Many guidelines have changed to narrow the flip time to 90 days. Unfortunately, when the flip time narrowed to 90 days many lenders started putting caps on the profit an investor makes.
Last month, we had a buyer make an offer on a flip foreclosure. The flipper has done an incredible job rehabbing the home.The problem was that the flipper did much of the work himself and could not provide receipts for the work completed to the lender or appraiser.
The lender said the flipper was making too much profit. The flipper would not agree to a lower sales price so the buyer went out searching for a new lender to loan them the money to complete the purchase. Three weeks later the buyer found out that no lender would provide a loan.
If you're looking to flip Kansas City foreclosures I suggest discussing your plan with an experienced Kansas City real estate agent who works with investors. I have some awesome referrals if you need a place to start.
Let us know what you think or add to our blog by writing a comment.
In the old days if an investor kept a home for 6 months they could make unlimited profit. Many guidelines have changed to narrow the flip time to 90 days. Unfortunately, when the flip time narrowed to 90 days many lenders started putting caps on the profit an investor makes.
Last month, we had a buyer make an offer on a flip foreclosure. The flipper has done an incredible job rehabbing the home.The problem was that the flipper did much of the work himself and could not provide receipts for the work completed to the lender or appraiser.
The lender said the flipper was making too much profit. The flipper would not agree to a lower sales price so the buyer went out searching for a new lender to loan them the money to complete the purchase. Three weeks later the buyer found out that no lender would provide a loan.
If you're looking to flip Kansas City foreclosures I suggest discussing your plan with an experienced Kansas City real estate agent who works with investors. I have some awesome referrals if you need a place to start.
Let us know what you think or add to our blog by writing a comment.
Blog post written by the Dowell Taggart Team of RE/MAX Best Associates
Your Kansas City Real Estate Marketing Masters!
Follow us on Twitter
Be our fan FacebookFriend us on Facebook
Network with us on Ning
Follow us on Social Media
Search 21,000+ Kansas City Homes For Sale including foreclosures, short sales, luxury homes and more
How would you like to save thousands on your next Kansas City home purchase? Click here to find out how.
0 Comments
Thank You for commenting on our Blogger blog, http://OnlineKansasCity.Blogspot.com!
Just an FYI: Spam will not be published.