Real Estate Investor · Las Vegas, NV · Member since 2011 · 7 posts · 0 votes
Greetings Everyone,
I am interested in learning the process of investing in HUD homes? Are you able to wholesale HUD Homes? I want to thank everyone in advance for their input. Have a successful day.
If you are asking if their are deed restrictions on HUD homes, then yes you can wholesale them. There are no restrictions that I know of at this time. You likely need to double close on them as their contract is not assignable. You will need to find an agent to put in offers for you though. I believe all offers need to be made through an agent.
I have looked into HUD a tiny bit, what I saw looked very promising, but very much a specialty unto itself.
There is a whole release for bidding time table they do based upon who/ what you are, ie a owner occupier or a R.E.I.. R.E.. were well at the bottom of the feeding chain, although non-profits are right near the tip top.
I have considered making a non-profit just to flip them, then maybe buy them out with a holding entity. Not too legal, so, it is a definite work in progress, a pet project of sorts.
There isn't much to it. Go to hudhomestore.com and find yourself a house. Contact the agent for the house you want and make an offer. Houses under $50k require $500 earnest money and houses above $50k require $1k earnest money.
Once you get your offer accepted you can set the closing date up to 45 days away. Go get yourself a buyer for the house. Do a double closing. That's it...
Is there any benefit to going thru the lister? I think this was discussed recently but I can't recall if the question was answered. I bought a Hud foreclosure and used my agent friend. She told me that Hud was paying the selling agent 5% and rebated 3% to me. Is the commission lower if the LA brings the contract? I mean, is the "net" to Hud affected? Just wondering if there is any reason to go straight to the LA. Someone here said that the LA wouldn't have any knowledge of other offers or influence in getting your offer accepted.
There is a monetary benefit to the listing agent as they can collect both sides of the commission, but I do not think there is a benefit to HUD. The other benefit is that you may get a heads up phone call on your next deal from the listing agent on either a property changing status or one that is falling out of escrow.
BUT if you are an investor who is putting out 50 low ball offers I would not use the listing agent. Just depends on your strategy.