HUD Foreclosures
I know that HUD does not allow one to flip their foreclosures.
Now as a wholesaler can you double or simultaneous close on a HUD foreclosure?
Thanks-Kenrick
I know that HUD does not allow one to flip their foreclosures.
Now as a wholesaler can you double or simultaneous close on a HUD foreclosure?
Thanks-Kenrick
Person;
I wouldn't think about doing double/simultaneous closings in Dallas - period!!!
C- :-o
I was not aware that Hud does not allow people to wholesale/flip properties. Why is that?
Because HUD sees an assignment fee as money they could have recovered while selling the property.
To address the origional question, I seriously doubt you would find any HUD deals that any investor would be interested in, therefore, the question is pointless. The lowest I've seen HUD homes sold for is 82% of "as is" FMV, which is usually high. By the time the realtor is paid (which comes out of the net to HUD) there is very little to no room for an investor to make cash. First Preson is also very difficult to deal with and the most un-creative seller you will ever deal with.
-Chris
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Live long and be profitable![ Edited by c-brainard on Date 06/21/2004 ]
Hey Chris,
What about in regards to REOs? Can you simultaneous close on them?
The reason I asked is now since I have access to the MLS, I created a search that sends me property that is below MV every day. Likewise, I receive a lot of HUD and REOs.
And I wanted to know this before I started to look at these properties to see if I will place a bid or offer.
Thanks-Kenrick
I honestly don't know. You can go to HUD's web site and look for an answer or call First Preson and ask. Likewise, you can call the bank who owns the REO you are interested in to find out. A title company may also be able to provide insight. I don't see any way for them to stop you, as once they no longer own the home you should be able to do as you please.
-Chris
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Live long and be profitable![ Edited by c-brainard on Date 06/21/2004 ]
If you know how to successfully pull one off, you can double close on any property. All that is is simply closing on your buy and then closing on your sell. As long as you can get title to the property, you can sell it immediately, if you so desire. But, as stated, the real trick is to be able to successfully, and legally, pull it off.
As far as assignments go, they are not an option when dealing with REOs or HUD, period.
Roger
I wanted to follow up on C-Brainard's "..I doubt you'd find an investor interested..." Please forgive me if I misquoted that.
This year alone we've bought 6 HUD's through the web site bidding system. You are correct that people are paying outrageous amounts of money for these houses.
We bid $60k on a list price house of $74K and it went to a bidder for $84,600! the property comps out at about 106k. Add your fix up costs in and there's no margin. This is happening a LOT here. I routinely see houses going for 110-120% of the asking price.
A word of warning on the HUD's, we managed to get 6 HUD properties but we probably look at 12 every single month and review hundreds of listings every week.
Anyway, back to the original question, we do double closings with HUD. You can't do this if the property is being sold as a "Owner Occ". You and the broker have to sign a form that states you'll live in the house for a year and not buy another HUD house for two years.
Hope that answers your question.
Lori