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
@Rob K , I would certainly have people to view the properties once I have establish a team on the ground. My goal is to achieve that, however I'm just starting out & I hope it won't take too long for me to do that. In other perspective, it may be good for HUD fall back to the second highest bid
Real Estate Investor · singapore, Singapore · Member since 2013 · 17 posts · 0 votes
12y
@ Mark Ferguson , I'm actually surprised since I thought I would need to send original blue inked signed documents by mail. I have submitted package through colour scanning doc that I signed and emailing it. So far, I have not received approved contract from HUD, so I have to update you again whether they actually allow me to do that
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
12y
@Rob K. I usually never see the property before bidding, but I do turn in the contract and put my EM at risk, a cost of doing business for me. In my opinion, contracts falling off actually benefit the investor by increasing the time that the asset is in their inventory
@Account Closed How does submitting a low ball offer on a HUD waste everyone's time ?
Actually signing the offer and submitting the EMD is OK in my opinion. It is individuals that make an offer, win the bid and fail to submit the paperwork and EMD that I have a problem with. They unfairly tie up a property which they have either no knowledge of (having submitted the bid sight unseen) or do not really know what they are even doing. I lost a HUD earlier this year by $67.00 and the buyer failed to go thru with the paperwork. Since I was lost the bid and I was interested in another home that just came up that I submitted a bid onI had retracted my bid on the first since it was "already sold".
In my opinion the first was the better buy and I knew what the drainage problem was and had an estimate to fix it. It was already fixed in the inside, and the problem was all the gutters flowed to a common point near the foundation and plainly visible if someone looked as the soil was washed away near the gutter drain. A French drain and some rerouting of gutters would have fixed it for under $5K, giving me a $40K house for about $20-22K. Instead I bought and fixed up what is a $35K home for about $23K. So I lost $5K because someone failed to even submit a EMD and paperwork.
None · Virginia Beach, VA · Member since 2014 · 126 posts · 50 votes
12y
I looked at a property yesterday, that someone would have to pay me $50,000 to take it. I could have purchased it for less than $5000 I am sure. The property sits in a great, desired location, however, if the house was ever destroyed I could never rebuild on the lot. More to say the house was built in 1893, and of course came fully equipped with asbestos tile through out. This does not include the Knob and tube wiring, along with the lead drainage piping. It is a Hud listing, and how they let someone buy it in the first place I will never know. The home looks great on the outside, but the improvements to the home would cost at least $100,000. Now my advice, never buy a property without seeing it. HUD will definitely leave out details you should know about a property. With the property in Georgia it is possible that it has a sink hole on the property. Who knows? The property could be totally illegal through and through, and after you acquire the property you could get a letter from the county it is in that major, high dollar improvements are required. To the link you showed, it shows the last sell of the property was March 2014 for $65,205. Something is going on with it. And yes I agree, I hate the way HUD works. If they want to auction the properties that is one thing, however, until the money is in their hand, they should continue to list it. All Government Auctions really need improvement.