Flipping In NYC
Is it Legal to flip properties in NYC . A Real estate Broker told me that it was made ilegal recently in NYC .
Is it Legal to flip properties in NYC . A Real estate Broker told me that it was made ilegal recently in NYC .
Flipping is not illegal in any state. And we in the busines either use the terms buy and sell / rehab and sell or wholesale use of the word flipping is the mark of a novice it promotes fear in the minds of ceratin lenders and most real estate agents ignorant to unconventional real estate sales and investing.
What is required for most non-conforming lenders
these days is seasoning i.e a chain of title which means if you take actual legal title to a property Your buyer if he is seking financing from a non-confoming lender and he has B,C, credit or marginal credit his or her lender will require that youthe seller may have held the property a certain lenght of time. Times vary some require 3months some 6 months and some 12 months it all depends on the lenders requirements these stipulations do not apply on cash sales or for conforming buyeres i.e. A credit purcashers what some of you call flipping is not illegal in any state
and the FBI is not going to come after you unless you have committed mortgage fraud , or defrauded a lender and for that you would have to have bilked them out of more than one marginal deal. Most mortgage companies will demand the payoff within 90 to 120 days and seek action after that if you have not been cooperative. The key is if you are going to take actual
title you need to know your purchasers source of funding. I have done numerous buy/sells wholesales and rehabs and I have been on this site for along time under another name please heed my advice and talk with a good mortgage broker (who works with investors ) for further insight