Has anyone won a bid on Hubzu and wholesaled it?

Has anyone won a bid on Hubzu and wholesaled it?

Imperial Valley, CA · Member since 2016 · 30 posts · 4 votes

First actual post....

I learned so much from you guys already. Thanks, I've been a RE agent for 10 yrs now and in the mortgage business for about 15 years and I was also a Lic. Financial Advisor for JP Morgan. 

However, this is a whole other beast!  Might flip it but for now I think I will start by wholesaling property.

I've been checking out auctions sites like Hubzu and I'm interested to know if I won a bid and state 'cash offer' (lender has option to finance)...would I be able to do a wholesale on property as oppossed to rehab?  If so, what about the earnest money...and other fees?  Has anyone ever accomplished this if even feasible? Does it vary if it's only cash offer or CO and lender having financing option available? 

Thank you in advance.

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Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
9y

You'll need to close on it first. Hubzu contracts are not assignable.  

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  • Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    9y

    You'll need to close on it first. Hubzu contracts are not assignable.  

  • Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Arthur J. Encinas I had a client that bought a Hubzu property and decided he wanted to resell it immediately as he bought it for $55k and other investors were interested at $80k, but buried deep in the contract was a provision that didn't allow him to refinance or sell for more than $60k (I think) for 6 months. So he ended up holding for 6 months then selling. I'm not sure if all their contracts are the same or if that is negotiable or not (I assume not, since these are boilerplate contracts most of the time)

  • Imperial Valley, CA · Member since 2016 · 30 posts · 4 votes
    9y
    Originally posted by @Nick C.:

    You'll need to close on it first. Hubzu contracts are not assignable.  

    Thank you Nick, I assume this is the norm with most auction sites?

  • Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    9y

    Yes, that is the norm with most auction sites. Also the norm for foreclosures, which is what most of the auction sites are marketing. 

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