So I have been bidding very aggressively on HUDhomestore.com for the last 6 months with nothing... nada... zilch. I have been vigorously valuing properties that I find listed lower than they are worth and bidding in the 80-88 percent range off list price, even on properties listed for over 3 months. I have not received acceptance on anything. Now, what is really T'ing me off, is there is another Investor in my area who is getting these properties at 72-73% of list! What!? And what really made me slam my laptop this morning, was a very nice 3/2 listed for only 1 month that he won at 72% after ONE MONTH!? HOW!!?? What the heck am I doing wrong? Granted I did not get the chance to bid on that particular property (slipped under my radar) I have been very aggressive borderline INSANE when making my bids as of late. Any tips from the seasoned HUD guys?
Do not get discouraged...keep bidding. I recently got one at 78% and sold it in 48 hours. You have to make sure your net to HUD is at the correct percentage. You can test the waters at 81% net to HUD. Once you start getting counter offers, then decide on if you want to proceed..but don't stop bidding. I like the higher priced homes as the spread is easier to make $8000 or more on your wholesale resell, if that's your strategy. You have to constantly monitor the area of interest and the properties daily. I submit at least 10 bids a week. You are testing the waters of HUD'S acceptance %. The lower priced homes are a little more difficult, and yield a lower spread. You have to remember, the initial listed HUD will go at 88% net to HUD generally. Here in CA, it may be 90% net, but at a $400K price range $5000 is a still a good profit if you resell it at $365,000, especially for no work on the home. However it can be done. Hang in there.
We never get them more than 50-54% of the list price.
There are a few details that help get offers accepted.
Are you getting countered?
I checked this out and looks interesting. What is HUD Store and can this be used to get properties at a discount ? Would love to get more information on this. Would be looking for flips or longer term holds.
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