Does anyone know if its possible to wholesale homes from HUD? Is there anyone in here who is doing this, if so can you virtually mentor me and teach me this process. I promise not to work your area.
You first need to make an offer with a Realtor. If you get the accepted offer your agent has 2 days to get all the documents, your earnest money check and proof of funds for how you actually plan to purchase the home.
This is a legit transaction. Once you get he home under contract you can then advertise it to your list of cash buyers. You can not turn around and list it on the MLS nor can you assign the contract.
so in essence, I only have a couple days to get a cash buyer or I either have to buy the property myself or loose earnest money. Buyer has to have funding immediately. Right?
I am doing it here in SC. My contract states 45 days to close and the option of extending for around $15 a day. You have to be careful with your marketing as technically its aganist the terms of the contract and can irritate the listing agent if they want to be anal. But yeah, get it under contract, do a double close, cannot assign, pocket cash and repeat.
thank you very much for clearing that up. I'm about get on this asap
I believe there is a way to "assign" the contract on a bank held property if you make the offer in an llc's name and then sell ownership of the llc to your end buyer.
@christopher goldie is your contract state specific?
@scott cuth That makes sense but wouldn't that cost me more money. I'll be honest, I try to wholesale because I live check to check and I'm fed up with it.
I am not an expert and I am very new here on BP, but this is my understanding. The HUD contract is not state specific, as far as I know. I think what Christopher was saying is that he asks for a 45 day window to allow more time to market the property. And DO be careful about your marketing... I put up a sign in the yard and OH BOY!!! Did I hear about it. The listing agent and my agent were quick to point out that there is no marketing a HUD property, until after my closing. Makes it tough to show the property to any potential buyers, too... You have to be a bit creative. If you are the selling agent you have the lock box code... If you "get caught" and the Listing agent or HUD inspector finds out...you could KILL the deal and forfeit EM. The other thing you can do at least here in IL, is to add the end buyer to the contract, even after the initial contract is written. After closing you do a quit claim of your interest to the end buyer and they "reimburse" you for your expenses. I think the LLC approach works too if you work fast enough. I believe it needs to be an LLC that is "Property Specific" in name? One LLC to each contract??? You really need to verify that last point... Not completely sure it HAS to be so, but It is cleaner if you do it that way.
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