Changes in how to buy in the phoenix Arizona market.

With all that has been happening in the market in the recent past thing have been changing so much it’s been hard to keep up with it. The number one complaint I hear is how hard it is to find good discounted properties. Here are some of the challenges that we are facing in the Phoenix, Arizona market.

The Freddie Mac & Fannie Mae seasoning issues. Most of us are aware of the FHA seasoning condition that comes with selling a property to a FHA barrower. Now Freddie Mac and Fannie Mae are requiring a 90 day seasoning on properties that you buy from them. This is a title condition that restricts a person from buying a property from them and turning the property in less than 90 days. How does this affect our industry? It should not affect the retail fix&flip investor as much as you local wholesaler. If you are a fix&flip investor you are more than likely dealing with FHA requirements and the Freddie Mac & Fannie Mae sentence run concurrent with the buyers FHA requirements, therefore it’s not a big issue. However if you are a Wholesaler that turns properties to clients you are effected. Unless you have the resources to inventory properties, you have lost a source for discounted properties. For the guy that works 4 or 5 short sales and is hanging in there with the lending institution for months and finally gets that approval he won’t be able to sell it if it’s a Freddie Mac or Fannie Mae deal for 90 days. Many of these Wholesalers do not have a marketing plan other than moving the property to a large wholesaler like us who have a client base and a marketing plan. Now not only is the Small wholesaler affected but the larger wholesaler is as well and at the end it all trickles down to the client.

Well maybe in time Freddie Mac and Fannie Mae will realize that real estate investors are a critical part of the real estate recovery.

Happy Investing
Chris Bianco
www.valleywideforeclosures.com