Hello once again all! I'm digging in more and more to all the different strategies and vehicles that can take me down the road of success. Without being able to find a mentor and attending REIA meetings to no avail regarding assistance quite yet, I will lean on you all once again...
I've come across HUD Wholesaling. Now, I do not know much about it but I do know that a licensed realtor has to submit the bids. I've always wanted to be a licensed realtor but not for the sake of being a traditional realtor, mainly for the education and perks with MLS, etc... I know there are fees with association, CE and what have you but I digress...
Question: Do any of you wholesale HUD properties? If so, do you recommend getting a real estate license or is it just not worth it? I'm really trying here!
PS. I want to master each strategy but want to have 2-3 avenues. (Wholesaling to begin, HUD Wholesaling, Fix and flip :), Buy and hold and ultimately commercial and land.) Ok maybe a little more than 2-3. I'm ambitious.
Thank you all for any advice! You all are awesome.
To wholesale HUD homes you will surely need a Realtor to place the bids for you. You should go and see the homes to get an idea of condition so you can make a good offer.
You will need to show proof of funds to purchase the home and if your offer is accepted you will have to give your Realtor the required earnest money deposit.
You will most likely not be able to back out of the deal once the earnest money and contract has been sent to HUD within 2 days of acceptance. You will have about 30 days to sell and secure your cash buyer in order to do a double close.
And realize, as with any MLS listed property, anyone in the world who is looking has already seen it. Lots of competition for HUDproperties.
Just be aware that HUD prohibits marketing of their properties while they are under contract meaning that you are not allowed to advertise, show or alter the property in any way.
Realistically, they have very little recourse against the buyer except to cancel the bid. However, your Agent is the one at risk of losing his/her NAID number which allows them to place bids so be upfront with your agent so they are aware of the risk they are taking
Friend I just want to make sure that before you buy anything you know what it is worth? Do you have that part down? can you figure out the value on a property, what tools do you use? Are you hocked up to services that help you with the estimation of the values of the property?
There are three parts into this business.
I just want to make sure you have covered all these grounds.
I sincerely thank you all for your kind replies!
@Curt Davis - Hi Mr Davis, Thank very much for the insight!.. That sounds awesome if I could put more work into networking to line up potential buyers. I appreciate your reply!
@Wayne Brooks - Hi Mr Brooks, The more I investigate, the more I find HUD homes are a delicious entrÃÂ©e for hungry investors. So, the HUD homes make it to the MLS first? I was under the impression, they went straight to the HUD store. In the case you describe, you're right!.. Everyone and their grandma has seen the listing. But would one advantage be the NAID? Not every realtor has that correct? They have to register with HUD to get that? Thank you very much for your reply!
@Greg Hall - Hi Mr Hall, So I would definitely want a buyer ready to go to closing with? That's great info to receive! I was unaware you could not even advertise! You have to be a rock solid investor to pull off the double close then! Thank you very much for your reply!
@Morry Eghbal - Hi Mr Eghbal, I 100% absolutely appreciate your concern! To be down right honest with you, I do NOT know 100% how to value a property. I am 30 years old, only work experience has been the Fire Service since high school, I've wanted to be involved with real estate since I was a child, and still have not pulled the trigger. I've had financial setbacks and to be honest, I am the poster boy for Analysis Paralysis. I've looked at properties and could not engage. I figured, HUD homes might be easier on the pocketbook once I commit! Thank you for your reply!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.