The methods that real estate investors use to unload their properties have drastically changed. Accepted closing practices and laws are constantly changing. Things that were acceptable just a short time ago are now considered objectionable for planned closing these days.
Changes in the real estate industry are quick and dramatic. Not too long ago, it was common for real estate investors to buy a property and sell it all in the same day. This is what is known as flipping, buying and quickly reselling properties for profit. However, now there are insurance companies that you must deal with, making it difficult to buy and sell as quickly as in the past.
These days, more and more real estate investors are separating transactions by a week or so. For instance, many real estate experts are now recommending that you buy your investment properties on Monday and sell on the following Monday.
In addition, a number of lenders are now adding resale timelines of their own to short sale approval letters. Some lenders require the property to be held for a minimum of thirty days, while others require as much as ninety days. This is even more common when dealing with foreclosure properties owned by the lender and have already gone through the whole process of foreclosure. This forces investors in the real estate industry to revert to leasing, rehabbing, buying and holding or rent-to-own.
There are a few things that investors can do to make sure there are not any questions regarding transactions. In order to eliminate the possibility of appearing improper, investors should make short sale offers to a foreclosing lender before they go out and find a new buyer. In addition, many investors are hiring one lawyer when they purchase a new investment property and another lawyer when it is time to sell the property.
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Wow, I didnt realise just how quick some property investors flip property. It’s incredible.