Big Value In ARV
Big Value In ARV
Most lenders are getting nervous doing “deal” transactions – meaning when you are buying a house low, fixing it and selling it much higher all within a 90 day window. Too much fraud is going on in the FHA market and all of us are suffering because of that.
But here are two solid, proven strategies that I have and I am using everyday in my foreclosure business:
Let the lender know that it is deal transaction even before the loan office starts submitting the file. Most lenders will say No if they cannot do it. The one that says yes will ask for 2 things – a review of your submitted appraisal, which is perfectly O.K. because typically I am leaving some equity in the house. Second they will ask for proof of rehab – meaning all the receipts that you have collected in the property folder, copy them and fax them over.
Know where to do deal transaction from day 1. Most loan officers have this habit of trying to perform miracles. Don’t get sidetracked into believing that a loan officer making $1500 on your loan cares more about your deal than you do who is making $20,000 on this deal.
One of the thing that I instituted in the Apprentice program was an understanding on the part of my coaching group is how important is to understand the mortgage game to retail deals. If you are wholesaling than you don’t have to worry about anything. That is the other guys’ headache.
They are several lenders – conforming and non-conforming – who have no problem doing deal transactions as long as the appraisal and renovation value makes sense. Know those in your area and you can do as many deals as you want.
I know I do!