Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
@Chris Martin if I understand @Yee Yonfai correctly, he is the one with the winning bid. He made the bid, presumably through some broker, HUD accepted and now he has to decide whether to get the EM and package back to HUD or not.
Can you even do a back to back close on a HUD? The only way I've seen HUDs wholesaled is by buying then property with an LLC and then selling the LLC. I thought they had some sort of restrictions on quickly reselling the property. But I long ago gave up on dealing with HUD, so perhaps I'm mis-remembering this.
Tax assessments are irrelevant to values. They're for generating taxes.
A range of $90K to $130K for comps is so wide as to be meaningless. Without a real value you have no idea what someone might pay.
The property looks in good shape, though it is missing flooring in some rooms. But when were those pictures taken? What does it really look like right now? For all your know, it could be trashed.
IMHO you have no data to make a decision. You don't know what its worth. You don't know what it will take to fix it up. So you have no choice but to let this drop.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
12y
I'm trying to figure out why this property isn't on http://www.hudhomestore.com Are you sure it doesn't already have an accepted bid on it? Where I am, the listing often remains 'active' well beyond when HUD accepts a bid.
From the pictures, it looks like it has no flooring other than linoleum in the kitchen. Best bet is to look for a contact or higher someone to do the walk-through for you. Get a second, more local opinion on the house to confirm necessary repairs.
Real Estate Investor · singapore, Singapore · Member since 2013 · 17 posts · 0 votes
12y
@ Chris Martin From what I see is HUD removed the listing once bid is accepted.
@Anthony Martin Since its a HUD deal, I have 2 business days to send Emd in, I am not positive in being to get a local opinion on ground. That's why I'm having a little headache over it.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
12y
If it isn't on the HUD home site, how are you going to bid on it? Zillow listings stay active well beyond when a HUD bid is accepted. Have you checked to make sure you can bid on it? Do you know the property case number (e.g. 101-708660)?
Real Estate Investor · singapore, Singapore · Member since 2013 · 17 posts · 0 votes
12y
I bid on this property & is accepted & HUD takes down the listing. I can't find it in HUD website too. I can't find my other accepted bids on hud website as well
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
12y
So... you're saying you have the winning bid? If so, your broker needs to submit your acceptance package to HUD via over night mail within 24 hours. Your broker should have forwarded to you the email from HUD detailing the requirements of the bid.... and your bid would be on the HUD site as an accepted bid.
Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
12y
@Chris Martin I think he knows that he has to submit everything. He's trying to decide whether to go through with the deal before he sends his earnest money in and it becomes non refundable.
Yee, are you saying you haven't seen the home and you are depending solely on huds PCR for repairs? Bad idea.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
12y
The question is, how can you bid on a HUD property not listed? It's not on the 'bid accepted' list either. The fact that you can see the listing on Zillow and elsewhere leads me to believe HUD accepted a bid placed by some other broker.
Real Estate Investor · singapore, Singapore · Member since 2013 · 17 posts · 0 votes
12y
I apologize if I had been unclear. Yup I have the bid accepted by HUD. It is a bad choice to go ahead without seeing property, its like a gamble. Only 3 bidders including me on this one, although I feel price is resonable ...my gut reaction tells me to not go ahead. So therefore, I thought of asking BP. Thanks :)
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
@Chris Martin if I understand @Yee Yonfai correctly, he is the one with the winning bid. He made the bid, presumably through some broker, HUD accepted and now he has to decide whether to get the EM and package back to HUD or not.
Can you even do a back to back close on a HUD? The only way I've seen HUDs wholesaled is by buying then property with an LLC and then selling the LLC. I thought they had some sort of restrictions on quickly reselling the property. But I long ago gave up on dealing with HUD, so perhaps I'm mis-remembering this.
Tax assessments are irrelevant to values. They're for generating taxes.
A range of $90K to $130K for comps is so wide as to be meaningless. Without a real value you have no idea what someone might pay.
The property looks in good shape, though it is missing flooring in some rooms. But when were those pictures taken? What does it really look like right now? For all your know, it could be trashed.
IMHO you have no data to make a decision. You don't know what its worth. You don't know what it will take to fix it up. So you have no choice but to let this drop.
Real Estate Investor · singapore, Singapore · Member since 2013 · 17 posts · 0 votes
12y
Thanks for the replies. I definitely agree with @Jon Holdman, I am giving up this parcel. I tried to find the best comps, however the area is too vast apart since its rural there too few property sold this year in the area. The only advantage i can think of this property have over other comps is the 2.4k sq ft & 5 acre lot. Lowest reasonable comparison is 90k, average Dom is a more than 3 months. What should I do to generate a more detailed data & make a conclusion, assuming repairs are low 5-10k?
Real Estate Broker · Toa Baja, PR · Member since 2013 · 30 posts · 7 votes
12y
The problem here is if you don't know the neighborhood and the property itself it could be a bad purchase. 2 months ago I won a bid in Puerto Rico for a 3/2 property for $8K in a market value of $80-$100K. Before I sent the contract package I asked a colleague to go to see the property for me and found out that the land had a very very bad cliff, the property was on a flood zone, more than 10 properties around were vandalized, septic tank was in code violation, property interior was completely in code violation, it was infested with the worst kind of termites, missing all electric and plumbing, etc. I asked to some potential buyers and they all told me that not even for free they will buy or live there and so I declined to buy it. My advice is go to see the property or send someone you trust to see it for you.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
12y
Why are you bidding on HUD houses that you haven't viewed? I wish HUD would ban people from bidding who don't perform. I see this all the time where I get outbid on a house, only to see it come back on the market a few days later. It';s frustrating.