Comments on: Investors, Tax Credit & 90 Day Seasoning.

By: Rhonda Porter

Rhonda Porter — Tue, 24 Nov 2009 18:02:26 +0000

Ardell, FHA just came out last week and re-stated this rule requiring a second appraisal for homes owned 91-180 days.

I saw this Mortgagee Letter (2009-48) and thought of your post.

By: Jerry Gropp Architect AIA

Jerry Gropp Architect AIA — Sun, 08 Nov 2009 01:34:49 +0000

Ardell (and Justin)- It’s sorta like talking in a monotone without being able to BOLD, etc. as we used to be able to do. Emphasis is useful to us taking the time to comment- nicht wahr? JG

By: ARDELL

ARDELL — Sat, 07 Nov 2009 00:01:39 +0000

Not really, Rhonda. A “flipper” doesn’t necessarily need to “do” anything to the property and it is merely a function of time that makes it “a flip”. (e.g. a quick flip)

One can buy at foreclosure for $120,000 and sell for $160,000 within a week and it would be a “flip”, but not have anything to do with “quality of improvements”.

By: Rhonda Porter

Rhonda Porter — Fri, 06 Nov 2009 04:52:06 +0000

wouldn’t this apply to most builders as well: ‘every day is a day of carrying costs, so time is of the essence.”

A builder WISHES they could “flip” a property if the term flip is defined by time.

The “flip” industry suffers from what mortgage origination did; too easy to get into and too many people doing it for the wrong reasons. Both industries are changing.

By: ARDELL

ARDELL — Fri, 06 Nov 2009 03:18:36 +0000

A “flip” to me is more about time vs. quality, unless you are saying quality by definition takes too much time to be a “flip”.

In a flip every day is a day of carrying costs, so time is of the essence.

By: ARDELL

ARDELL — Fri, 06 Nov 2009 03:16:44 +0000

Jerry,

I don’t have anything to do with all of the changes…or there would not have been any You’ll have to ask whomever is in charge these days and if you can find out who that is…let me know.

By: Jerry Gropp Architect AIA

Jerry Gropp Architect AIA — Fri, 06 Nov 2009 03:05:18 +0000

Ardell- What happened to RCG’s Comment Editing Codes? (I like to BOLD things once in a while). JG

By: Jerry Gropp Architect AIA

Jerry Gropp Architect AIA — Fri, 06 Nov 2009 03:02:23 +0000

Ardell- To me Flippers per se are those who buy a property, do minimal cosmetic things to paper over the many inherent defects and then unload these puttied-over places on the unsuspecting. Renovators as such are an other thing entirely- worthy of my respect and the public’s. JG

By: Rhonda Porter

Rhonda Porter — Fri, 06 Nov 2009 01:04:57 +0000

I would say like everything, there are those who were actually good at flipping and those who were not. You can say the very same thing about “builders”.

One of my clients bought a house that was once a terrible place–neighbors hated walking by it, I was told at her housewarming. The home is beautiful–probably one of the nicest “flips” I’ve seen.

By: ARDELL

ARDELL — Fri, 06 Nov 2009 00:49:58 +0000

Jerry,

There are pros and cons to everything. I am thinking of two absolutely decrepit rat traps that someone bought, improved and sold. The neighbors were ecstatic.