Flipper Advice - Buy Your Own 2nd Appraisal & Home Inspection Up Front
Copyright (c) 2011, Deanna & Jim's GOLD Team
A large percentage of flipped properties are purchased by owner occupants using FHA (or VA) financing.
For flips closed less than 6 months after their pre-flip purchase the lenders offering these kinds of financing will often require 2 appraisals and a home inspection.
The first appraisal will need to be ordered by the buyer's lender through a third party appraisal management firm that prevents the lender from directly contacting the appraisal. The second appraisal will virtually always be required. Lenders are not quite so strict as to who orders the second appraisal. The home inspection from a licensed inspector will also be required.
Our smart flippers are now ordering the second appraisals and the home inspection report at the time they list their properties for sale to avoid delaying the transactions from closing any longer than necessary on the back side of the transaction. This also enables them to detect any surprises discovered in the home inspection and deal with them sooner rather than later.
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