Is it possible to flip a home?

It's late at night and you're watching an info-blurb on investors who have been trained by the INFOprogram and are out selling homes for twice what they paid for them.

This seems too good to be true and you wonder, aren't there rules against this to protect the unsuspecting home buyer?

Or better yet, how can I get in on this one?

Well, new federal rules have been established to deter property flipping.

The old buy low, slap a coat of paint, and sell high philosophy, may be a thing of the past.

The quick flip is virtually gone as FHA financing will not be available for homes that have sold and then are instantly back on the market in less than 90 days.

Also, in cases where the Flipper is trying to sell a property for more than 100 percent higher than what was previously paid, additional data will have to be submitted to justify the price increase.

This requirement will come into play when trying to sell between 91 and 180 days after the original purchase date.

Remember, these rules apply when the would-be-home-buyer is applying for FHA financing, not conventional or owner-backed financing.

But without being able to offer a FHA loan as a way to buy their home, a Flipper has lost a huge segment of the "prequalified" market.

Never fear.

Would be-Flipper's are looking towards conventional loans and unconventional advertising to keep the American dream alive.

One need only glance West to California to see the get-rich-quick-dream fleshed into reality.

These new rules go into effect July 7, 2006.


Rob Hernandez
New Century Realty
Austin, Texas
Foreclosed and Distressed Home Sales
(512) 784-3385