The Real Estate Investing Minute, a twice weekly web tv show that informs and teaches real estate investors about investment strategies and real estate news tackled the topic of flipping foreclosed homes on their February 19th episode.
Mr Voss explained that many real estate investors or potential real estate investors have the notion that a home purchased through a bank or that is purchased through the short sale process can not be sold to a retail home buyer after the closing of the home. He explained that this is not true and with the recent HUD waiver on 90 day seasoning requirements for FHA loans it is actually easier now to get these transactions financed if real estate investors follow the guidelines set out by HUD.
Ms McArthur provided a HUD document showing exactly what their guidelines are when it comes to flipping foreclosed homes. In fact as she shared it is stated clearly in the HUD guidelines that flipping house transactions are a legitimate means to selling a foreclosed home or short sale when certain criteria are met.
Allison went on to show what HUD states are red flags for illegitimate flipping practices and asks their lenders to watch out for them or take certain steps to mitigate their risks. This is done to ensure that the lender and end buyer are protected from erroneous price inflation in the flipping process. Most importantly the document should serve as evidence to would-be real estate investors who are afraid of flipping foreclosures that if they are flipped correctly it is a legitimate business transaction sanctioned by HUD.
To watch this episode and learn more about how to correctly flip foreclosed homes and short sales visit, http://www.thereiminute.com/
