🍑 What is “Wholesaling”? | Assignment vs. Double Closing | FHA 90, 180 Day Flipping Rules

Flipping
Derek Varnadoe discusses the basics of real estate flipping and wholesaling (i.e., assignments, double closings). While most of us understand the basics of “flipping” and know it’s is a BIG problem for FHA buyers (unless at least 90 days have passed since the seller/investor closed), not as many of us understand the basics of “wholesaling” and the two main methods used by wholesalers to contract with a buyer.

Wholesaling/assignments are facing an increase in regulations across the country, and some states now require a real estate license to handle an assignment (market “equitable interest) and require specific disclosures when wholesaling/double closing. Many Georgia real estate brokers prohibit their agents from participating in these types of transactions, due to their predatory perception and increased risk to everyday home buyers and sellers.

In this LIVE session, Derek reviews:

Flipping
1. FHA 90 Day Flipping Rule
2. FHA 180 Day Flipping Rule
3. FHA Buyers & Condos
4. Appraisal Gap Clauses (Why They Aren’t Enforceable)

Wholesaling
1. Assignments, Assignment Fees
2. Double Closings (Two Contracts, Two Closings)
3. Double Closings That Close in Escrow (Dry Closings)
4. Major Problems for FHA Buyers, Title Insurance

Red Flags
1. “Equitable Seller” or “Equitable Owner” Lingo
2. No Proof of Funds, No Lender Approval Letter
3. Vulnerable Seller, Property Likely Not Listed with a Broker
4. Unusual Special Stipulations, Assignability Clauses
5. Non-Standard Contract Forms, Questionable Terms

Derek Varnadoe is a Georgia real estate broker. The information contained herein is for informational and entertainment purposes only and should not be substituted for legal or specific real estate advice. Every real estate transaction is unique and every market is different–consult with a local real estate professional.

The views and opinions expressed herein are only those of the creator.

#georgiarealestate #atlantarealtors #realestateagenttraining #realestatewholesaling

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