"What does this mean?". Normally HUD will not allow an FHA insured loan on a property that has been bought by an investor, fixed up and sold within 90 days. During the time of boom to bust there were some unscrupulous investors that would buy properties and turn them immediately, sometimes with a straw buyer at hyper inflated prices.
What we are seeing now is a void being filled by the investors who have the money to buy properties that have been abandoned for months, fixing them up and putting in a qualified buyer who has a nominal down payment and who would not have otherwise had the money to fix up such a property. Thus taking these eye sores off of the market and helping the values of the neighborhoods they are located in.
"Property flipping is…
2672 Views, 2 Comments