Investor · Guttenberg, NJ · Member since 2013 · 29 posts · 6 votes
I have been researching HUD homes in my region and have found a few I am willing to put an offer in on. I recall in podcast 38 Travis saying he would put in hundreds of offers on homes through a virtual assistant and if he wasn't interested not interested in that property he would not send in the earnest money. How can you (or your VA) make legitimate offers without EMD? Do you email the listing agent? Call them?
Investor · Madison, AL · Member since 2013 · 93 posts · 28 votes
12y
I have bought several HUDs this year. My wife is a realtor, so it makes the process easier. One thing that I did not know until a few days ago, HUD lists the last 14 days sales activity (click on Bid Results at the top of HUD Home Store). The dates, net to HUD price and the selling Broker are listed. You can create a spread sheet and all kind of good stuff surfaces.
Investor · Guttenberg, NJ · Member since 2013 · 29 posts · 6 votes
12y
thanks for all the great info guy
@Bryan L. I agree I will not regret becoming an agent from everything I've been reading. I have a meeting with my broker on 12/31 to register with HUD. Looking forward to opening up another avenue of listings. I seem to be struggling with finding the killer deals and still learning how to create the killer deals. Certainly looking forward to the ride though
@Andres Piedra sounds like you have a solid system in place. Have you closed on any homes through HUD? For yourself or others? And is so what did you wind up doing with them (flip, hold, ect)?
Involved In Real Estate · Potomac Falls, VA · Member since 2012 · 203 posts · 31 votes
12y
I havent' closed a HUD for myself yet. Almost did one but the ARV I had was inaccurate and the repair estimate was high once I checked the property out.
I have closed others though but mainly for owner occupants. My area (DC area) is pretty tough for getting investor HUDs as values are so inflated here.
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
12y
@Account Closed
Since HUD only considers net to them, the amount of commission does matter. Using the example above of the $100,000 purchase priced netting HUD $94,000, I(Being a Broker) can buy the same property for $96,800 and take no commission and my bid will be superior
If anyone is buying HUD homes on a regular basis, being licensed is a big money saver
Investor · Madison, AL · Member since 2013 · 93 posts · 28 votes
12y
I have bought several HUDs this year. My wife is a realtor, so it makes the process easier. One thing that I did not know until a few days ago, HUD lists the last 14 days sales activity (click on Bid Results at the top of HUD Home Store). The dates, net to HUD price and the selling Broker are listed. You can create a spread sheet and all kind of good stuff surfaces.
The person placing the bid has to be licensed in the state in which the property is located. Your Realtor can do this for you. Bidding on HUD homes takes like 2 minutes per bid, so it's really not as big a hassle as writing a typical offer on other properties.
You DO NOT send in an EMD until your bid is accepted. If you're bidding on hundreds of homes, the likelihood of you having seen the property before bidding is pretty low. So, what I do is bid until it's accepted. Once accepted, I rush over to the house to make sure it's something I'm ready to follow through on. If not, I do not send in the EMD and let the listing agent know it's not going to happen. If it's a GO, I get the paperwork in ASAP. You only get 48 hours to get a hard-copy packet to HUD through the mail, so get scrappy! It can be a fun roller coaster, I hear.
Great response. I just discovered the power to bid on HUD homes two days ago. I've been cramming so much info into my thick skull for the past 48 hours.
To add to your terrific response... concerning the 48-hour deadline to get paperwork in, I've heard that if you sent the paperwork in on time AND they find errors, you get a time extension to correct those errors. So the message I'm getting is that it may be beneficial to send the Asset Manager something less than correct if you know you're going to bust the deadline getting your stuff in order.