Investing in HUD Homes? What Are Details that I Should Know

[Amir Stoudamire]

Hello everyone. I was talking with a real estate agent who said that he would be willing to assist me in buying real estate. In his email, he suggested looking into HUD homes. Now as a wholesaler, I have never dipped into the realm of HUD foreclosures and only know a little about investing in those properties. Not too long ago I started reading about the HUD investing strategy, but I do not yet feel confident in my knowledge to start going down that path.

I do not have a great source of funds, but I did think about the possibility using my buyers' funds to purchase the homes and then assign the deed to the buyers that lended the money. If I remember correctly, this may be what is considered a double closing. Since the contracts of HUD homes cannot be assigned by traditional wholesale methods, I think DCs would be the best route to go.

For people that know more about this subject or have invested in HUD homes, is there anything that I should know that will help me do well in this niche? I have been looking into focusing on a new way to make profits in real estate and it seems like HUD home investing could show some satisfactory results. Any advice that can be given is very appreciated. Thank you!

[Patrick L.]

Keep in mind these houses have all been on MLS so they're not a secret to those you may try to market them to. If you put down your EMD and don't close you will lose it and there is no inspection contingency.