Monday, January 29, 2018 / by Sean Zanganeh
Feds suspend anti-flipping rule
THIS IS HUUUUUGE!!!!!!
Are you an FHA buyer?
Are you loosing out to ALL CASH buyers??
Are you frustrated because there is "NO GOOD Inventory"????
Well, come February 1, all of that is going to change. An ongoing battle that many 1st time home buyers and real estate professionals with FHA buyers is that we are many times becoming "sitting ducks" in regards to what properties are actually qualifying as a FHA approved property. There are thousands of properties active in the San Diego Market that in large are completely unavailable to the AMAZING opportunities we have been given with low interest rates and low downpayments. The government has been willing to lend out to properties but the selection has been majorly limited due to the fact that "Cash Crazy" investors have been sweeping up all of the decent property and putting a 90 hold on for good qualified buyers to even consider. The idea if fixing and flipping properties has majorly slowed down as well because of the pool of buyers able to buy after the fix process are much lower.
The Old "Flipper" Idea:
-Buy the property at discount
-Fix the property to much better condition at a manageable expense.
-Immediately turn around and sell the property to hungry buyer with varied financing, who may not have the means or ways of remolding lower end housing.
-Buyer is happy with recently renovated home/condo and investor is happy because his vacancy and turn around time is far less and he achieving a positive cash flow
The Today "flipper" Idea:
-Buy the property at discount
-Fix the property to much better condition at a manageable expense.
-Hold the property for 90 days to the bulk of buyers and only be able to sell cash buyers who have the same mentality of the fix & flip investor.The Problem in this situation is that the cash investor has to be sitting on his investment project for a minimum of 120 days(90 hold, 30 sell) to turn over in this market. THIS HAS BEEN THE PROBLEM!
-Buyer comes in and purchases property.
After February 1, The "today flipper" is out and we are back to a concept of stabilization in inventory levels. Investors wil be able to achieve cash flow goals, and buyers will have more QUALITY selection.
As you read though, this is NOT going to fixing any sort of home price issues, but merely provide more selection to the people in line trying to achieve their goals of 2010.
-Own a home
-Receive a fantastic opportunity for major TAX CREDIT for owning a home.
Take a read!
On Feb. 1, the Federal Housing Administration will place a one-year moratorium on its anti-flipping rule, which will allow buyers with FHA-backed loans to purchase homes that have been held for less than 90 days, officials said Friday.
The move will open a new pool of homes to first-time homebuyers who have been losing bids to cash buyers, but shouldn't have much effect on home prices, analysts said.
"Opening up to FHA buyers means I can sell it to anybody. That's big," said investor Bruce May, owner of SoCal Homes.
FHA buyers made up 28.1 percent of the market in San Diego County, and 50.1 percent in Riverside County, according to real estate data firm DataQuick. Analysts said cash buyers take up much of the rest of the market, and many of them are speculators and investors. The new rule will connect the two groups.
"Give the consumers as many options as possible," said Nathan Moeder, a real estate economist with the London Group. "Someone who's buying an investment property to flip it, isn't buying a junk property where there's holes in the walls. From the consumer side, I'd be happy about that."
The new rules limit seller's profits to 20 percent above the purchase cost, unless an independent appraiser confirms that renovations and repairs justify the higher price.
"They didn't want to facilitate speculators," said Mark Goldman, an instructor at San Diego State University.
May thinks this move will grow the number of transactions in coming months: More buyers for investors will motivate investors to buy and renovate more houses.
"It should be good for everybody and the economy," he said.
Sooooooo What now?
You, your family, and your friends should:
1)Pick up your phones 2) Call Me 858.229.6063 3)Make an appointment today! 4)Own in 2010!
Thanks for your support and referrals! It furthers you and I to achieve our goals and expand on our Dreams.
Happy MLK Day! Dream Big
Sean Zanganeh
Windermere Exclusive Properties
0:858.521.7281
m:858.229.6063
sean.zanganeh@gmail.com
www.seanzanganeh.com
Are you an FHA buyer?
Are you loosing out to ALL CASH buyers??
Are you frustrated because there is "NO GOOD Inventory"????
Well, come February 1, all of that is going to change. An ongoing battle that many 1st time home buyers and real estate professionals with FHA buyers is that we are many times becoming "sitting ducks" in regards to what properties are actually qualifying as a FHA approved property. There are thousands of properties active in the San Diego Market that in large are completely unavailable to the AMAZING opportunities we have been given with low interest rates and low downpayments. The government has been willing to lend out to properties but the selection has been majorly limited due to the fact that "Cash Crazy" investors have been sweeping up all of the decent property and putting a 90 hold on for good qualified buyers to even consider. The idea if fixing and flipping properties has majorly slowed down as well because of the pool of buyers able to buy after the fix process are much lower.
The Old "Flipper" Idea:
-Buy the property at discount
-Fix the property to much better condition at a manageable expense.
-Immediately turn around and sell the property to hungry buyer with varied financing, who may not have the means or ways of remolding lower end housing.
-Buyer is happy with recently renovated home/condo and investor is happy because his vacancy and turn around time is far less and he achieving a positive cash flow
The Today "flipper" Idea:
-Buy the property at discount
-Fix the property to much better condition at a manageable expense.
-Hold the property for 90 days to the bulk of buyers and only be able to sell cash buyers who have the same mentality of the fix & flip investor.The Problem in this situation is that the cash investor has to be sitting on his investment project for a minimum of 120 days(90 hold, 30 sell) to turn over in this market. THIS HAS BEEN THE PROBLEM!
-Buyer comes in and purchases property.
After February 1, The "today flipper" is out and we are back to a concept of stabilization in inventory levels. Investors wil be able to achieve cash flow goals, and buyers will have more QUALITY selection.
As you read though, this is NOT going to fixing any sort of home price issues, but merely provide more selection to the people in line trying to achieve their goals of 2010.
-Own a home
-Receive a fantastic opportunity for major TAX CREDIT for owning a home.
Take a read!
On Feb. 1, the Federal Housing Administration will place a one-year moratorium on its anti-flipping rule, which will allow buyers with FHA-backed loans to purchase homes that have been held for less than 90 days, officials said Friday.
The move will open a new pool of homes to first-time homebuyers who have been losing bids to cash buyers, but shouldn't have much effect on home prices, analysts said.
"Opening up to FHA buyers means I can sell it to anybody. That's big," said investor Bruce May, owner of SoCal Homes.
FHA buyers made up 28.1 percent of the market in San Diego County, and 50.1 percent in Riverside County, according to real estate data firm DataQuick. Analysts said cash buyers take up much of the rest of the market, and many of them are speculators and investors. The new rule will connect the two groups.
"Give the consumers as many options as possible," said Nathan Moeder, a real estate economist with the London Group. "Someone who's buying an investment property to flip it, isn't buying a junk property where there's holes in the walls. From the consumer side, I'd be happy about that."
The new rules limit seller's profits to 20 percent above the purchase cost, unless an independent appraiser confirms that renovations and repairs justify the higher price.
"They didn't want to facilitate speculators," said Mark Goldman, an instructor at San Diego State University.
May thinks this move will grow the number of transactions in coming months: More buyers for investors will motivate investors to buy and renovate more houses.
"It should be good for everybody and the economy," he said.
Sooooooo What now?
You, your family, and your friends should:
1)Pick up your phones 2) Call Me 858.229.6063 3)Make an appointment today! 4)Own in 2010!
Thanks for your support and referrals! It furthers you and I to achieve our goals and expand on our Dreams.
Happy MLK Day! Dream Big
Sean Zanganeh
Windermere Exclusive Properties
0:858.521.7281
m:858.229.6063
sean.zanganeh@gmail.com
www.seanzanganeh.com
