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Cameron Dunlap teaches Real Estate investors how to overcome 30 day, 60 day and 120 day lender resale restrictions. You can literally turn it into a WIN, WIN, WIN sitiuation for all parties in the transaction. Check it out!
Hello, Cam Dunlap here, for a white board exercise today. What I want to talk to you about is Bank Resale Restrictions. There’s no doubt that there are a lot of bank foreclosures out there now, and some lenders have been for a long time, and others are just experimenting, and some are moving away from the concept of ” lender-resale restrictions. ” And what is common in the marketplace are 30 day, then we’ve got 45 day, I’ve seen in particular on some short sales, I’m now seeing an occasional 60, and in some cases even 90 days.
Now we’re gonna talk about those, and we’re gonna talk about how to get past that so that you can continue to do deals, make a ton of money, while we’re in the middle of this amazing foreclosure opportunity. I see at least another couple of years really before the inventory starts to dwindle, in fact we’re starting to see more and more of the shadow inventory that lenders have started to get released, so that is continuing the opportunity.
Ok, so 30 days i’ve seen pretty typically on short sales, and also on REO’s (check please, unsure of phrase he is coining) 45’s the same, 60 is a little more unusual and 90 I’m starting to hear about Fannie Mae doing, and I say arbitrarily, I mean in terms of nationwide. They’re not doing it in every market, and on every house in every market, but they are putting some 90 day resale restrictions on their properties. Now what that means to you and me, they want to prevent us from re selling this thing quickly .If you read the fine print on the Fannie Mae resale restriction, you’ll notice that it says you cannot resell it within 90 days as long as you are selling it for more than 120 % of your purchase price.
Now, what they’re basically doing is trying to tell you “Hey, if you’re making more than this much on it, well, we would rather stick our finger in your eye. If you’re making less than this much on it, well, then we’re ok with it. “So what we have is a government organization that is a known disaster area and has been for years, run by idiots and crooks, now trying to tell us what we should be able to make, when we helped them out of the jam that they’re in. Does that bother you like it bothers me? It makes me want to you know put my fist through the wall! It’s wrong, it’s Un-American, it’s anti-capitalistic, it’s controlling, and it’s nothing but big government in our face, but we’re not going to go there in this conversation I’m just trying to put it in perspective and I’ve got some others too, some other perspectives. So if you happen to live in an expensive market where say, you are buying this junker house for $100,000 and you plan to wholesale it, not gonna fix it, just gonna turn around and flip it to another investor rehabber landlord type buyer, you bought it for 100, you could sell it for as much as $119,999.00 and not be subject to that 90 resale restriction, read the fine print!
Now if you happen to live in a cheaper market, where you are buying a house for $15,000.00 , 120% of that is not a whole heck of a lot, although it’s still a $3,000 profit, which you might, you know, if you’re buying it for $15,000.00 well you could easily sell it for 40k,well you might want to figure something else out because it’s certainly more than 20% and it’s certainly not a deal anyone would want to walk away from. So, couple things to consider, on the Fannie Mae 90 day, I don’t think you’re gonna get them to wave it. But with organizations like Bank of America, Wells Fargo, where they’ve been sort of notorious resale restriction, ving ! Finger in the eye crybaby’s, here’s the trend that I’m seeing. More and more of my students I’m seeing it all around the country, are telling Bank of America and Wells and the likes of those banks, “No.” . So, when they make an offer through the realtor, the student, you, and it comes back accepted from BofA with a resale restriction in the contract saying, “We’ve accepted your offer but there’ll be a 30 day resale restriction in there.” What you can do is go back, obviously through the realtor and tell them “No, take the resale restriction out, or no deal, you choose.”
And what we’re seeing is Bank of America and Wells Fargo are starting to back down, they’re starting to say “Okay, we’ll take it out.” Now the Fannie Mae thing, that’s kind of new up and coming, and so we may see that for a while. The point I’m getting at is the smaller banks, not the government owners but the smaller, as if Bank of America was small, but the banks in some cases when you are willing to tell them to “Stuff it!” will actually take it out.
http://www.camerondunlapiflip.com
Cameron Dunlap
Cameron Direct