HUD Homes
Greetings.
I have just started to buy HUD homes to resell them. I intend on being the owner/occupant for this first one but this tittle follows me around for a year or two. I am considered by HUD thereafter to be an investor. Investors must sit on the sidelines for the first week or so while the owner / occupants bid firstly. I am all for owner / occupants but to sit on the sidelines and watch choice properties get by me is upsetting. I thought my corporation could bid but HUD says a corp. can't be an owner / occupant.
I'm looking for a way around this stumbling block. Any suggestions?
Thank you.
Sonny Shore
There is no way around the HUD bid process. If you follow the HUD properties very close only a few are bid on in the first week. HUD's sole goal and purpose is to give 1st time home buyer's a chance to purchase a home and that those homes be owner occupied. After that the bid is open to investors. As an investor HUD homes have not been a great deal lately because they have been requesting appraised value or very close to it with very little room from market. So, as an investor they haven't been great deal. Please make sure of the comp in the area when buying as an investor.
I'm in Michigan and I thought about going with HUD but found the same draw backs as you. So I went in the direction of Foreclosures. There is a draw back to that here in MI that I've heard does not exsist in GA. Here you have 6mo. to redeem your property but in Ga once it is auctioned off the owner loses all right and it goes to the highest bidder. There is tons of cash in foreclosures!!!!!!!!!!
One other thing about the owner/occupant period is that a place is probably more likely to go for a higher price if it's snapped up right away. If you're shopping for great deals, this may mean that if an owner/occupant grabs the place you weren't interested anyway.
Thank you all for your ideas.
Sonny.
There really is no way around this process. One things I would recommend is you find a broker that would work on a discount basis with you.
All HUD cares about is their net to HUD.
Use a broker that will take a zero commission and give them $500.00 after close. This will make you very
competitive!
Best RIches,
Jeff Adam
[addsig]
If you want to bid on a property, don't sit on your offer waiting for Day #11 to roll around. Get it in early, so your offer will be considered on the first possible day.
Or, if you're THAT desparate, go non-profit to get bid priority.
As for the commission, I strongly recommend you check to see what's legal in your area.