Closed on my first Hubzu property

4 Replies

Hi Everyone, 

I recently closed on my first Hubzu property and wanted to share my experience. All in all, everything went pretty smooth which was kind of a surprise based on the feedback I found about Hubzu. 

The property is a SFR built in 1957, 1900 sq ft 3/2 located in Westchester County NY. The ARV of similar renovated homes in area range from $380k -$410K.

It was listed on the MLS with a sale price of $217K directing you to bid on Hubzu if interested. My agent bid on the property, starting bid was $151K. We hit the reserve around $206K and won the bid at $226K.

After Hubzu's fees (4.5% for this property, plus technology fee, etc) I have a purchase price of roughly  $237K.

Payment terms were cash or conventional financing only. I secured a conventional owner occupied loan to purchase. 

Hubzu gave a maximum of 35 days to close on the property. I chose to use my own title company for closing. 

We signed the contracts, sent my deposit and started the title work. Throughout the process my realtor kept in contact with the document processor from Hubzu. Communication is key, if you back off and lose a few days waiting for documents, that can turn into a week with no activity. With a 35 day closing every day counts. 

I needed to show my financing was in order 2 weeks prior to close per my contract, so my focus was passing the appraisal. There were a few issues since utilities were off for a few years, I needed additional permit and inspection to turn on the electrical. The plumbing was certified with a pressure test. I passed the appraisal and was good to go. 

My closing was pushed out 2 days due to some title documents from the selling banks side being delayed. 

I successfully closed and have already started demo. I am gutting the downstairs, garage, bathrooms and opening up the kitchen. I will need to replace the heating system. Outside will get landscaping, new siding and garage doors.   

The plan is to complete the work in the next 2 months, live here for the next 2 years then sell it and repeat. 

In my personal experience I got a deal and would def look at hubzu again. 

Nick G.

    Nick,

    Thank you for sharing your experience. This is help. I have been looking at HUBZU as well. Good luck with the rehab.

    Sounds awesome @Nick G. Thanks for sharing. My friend and I looked at a Hubzu home for investing and he liked it. So, we have to come up with an offer. We are waiting for a couple of items from the LA, like when does the bidding end, and was it significantly higher than the starting bid. 

    Nice to know that you have to keep on these folks to get the property. Isn't that funny that the bank had some title issues which caused a delay? Figures. 

    Sounds awesome @Nick G. Thanks for sharing. My friend and I looked at a Hubzu home for investing and he liked it. So, we have to come up with an offer. We are waiting for a couple of items from the LA, like when does the bidding end, and was it significantly higher than the starting bid. 

    Nice to know that you have to keep on these folks to get the property. Isn't that funny that the bank had some title issues which caused a delay? Figures. 

    @Jeffery Griggs Thanks, if you find a property that interests you, try to walk to first if you can. 

    @John Hamilton If you are tracking a property on hubzu, you can still register for your own account and try to track the price even if you end up having your agent bid for you. My auction ran for 5 days and sold 75k over starting bid just for an idea. 

    Nick G.

      Free eBook from BiggerPockets!

      Ultimate Beginner's Guide Book Cover

      Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

      • Actionable advice for getting started,
      • Discover the 10 Most Lucrative Real Estate Niches,
      • Learn how to get started with or without money,
      • Explore Real-Life Strategies for Building Wealth,
      • And a LOT more.

      Lock We hate spam just as much as you

      Join the Largest Real Estate Investing Community

      Basic membership is free, forever.