Engineer/Investor · Suches GA · Member since 2011 · 69 posts · 49 votes
12y
Sure, and here is an update, I ended up buying 10 properties through this program in 2013. HUD provides an appraisal of as-is condition value. I had to bid on probably 100 properties, multiple times to get these 10. The average purchase price was 73% of as-is with a range of 50% to 91%. It took on average 73 days to sell 8 of the 10 properties. All but 2 were sold to owner occupants who got loans. The other 2 were sold to investors who paid cash. All properties required some level of renovation ranging from $2 psf to $10 psf depending upon condition of the property. The two I did not sell yet are much heavier renovations in the $20 to $30 psf range of renovation costs. The ARVs are typically well above the as-is appraisals. While I believe it is theoretically possible to buy and wholesale these "with no cash or credit", it would take a very large and responsive buyers list to pull off. Since I don't have that yet, I use my own funds and private lenders to fund the deals. Hope that helps. By the way, we offer our private lenders double digit rates of return or a piece of the profit, whichever is greater. If anyone out there has funds they want to put into play, just message me and I will slot you into one of our next deals.
Real Estate Agent · Henderson, NV · Member since 2014 · 9 posts · 4 votes
12y
I posted in March about my experiences and I still have not been rewarded any bids from HUD with the percentages that John's worksheet calculates. I have also tried higher percentages, and I still haven't been rewarded any bids. Has anyone else bought into his program and had success? I see a few more listings at the investor stage, but the lowest I have had was a counter at 77%. I talked to an investor in Maryland and she was rewarded a bid after 4 months...If anyone has had success, please post.. Thank you..
Jacksonville, FL · Member since 2014 · 1 post · 0 votes
12y
BEFORE YOU BUY HUD WHOLESALING READ THIS!
I am an investor in Florida and this DOES NOT work. This course was developed about two years ago and as far as I am concerned it is totally outdated. I just saw that Cochran is marketing this course again and when I heard his webinar a lot of this tips and tricks are outdated. Maybe this worked in Ohio in 2012 but not in Florida in 2014. I bid on properties consistently for over a month using his spreadsheet and NEVER came close to getting HUD to move below 80% of asking. And HUD's asking price is close to retail and not distressed as he claims. What is really bad is that the example he uses is in the original course, too old to be pertinent today. Furthermore, HUD no longer tags the bidding confirmation numbers with the number of competing bids as is taught in the course so I had no idea about the competition. And good luck getting a real estate agent to consistently make the bids. You would be better off taking the money spent on the course and buying a list.
Engineer/Investor · Suches GA · Member since 2011 · 69 posts · 49 votes
12y
Sam -
The reason "it doesn't work" in 2014 is because the market is recovering. In just the past year I have notice dramatically higher competition levels which translates to a smaller discount from list. Its just supply and demand and one must flex and find the discount that does work in your area. On the good side of the ledger, market prices are rising as well so its all relative. HUD wholesales are tough now, but HUD rehabs and HUD holds as rentals still work great in GA. The principals of systematic bidding and gorilla marketing are as relevant as ever in the HUD game.
Green Mountain, NC · Member since 2012 · 3 posts · 0 votes
12y
I'm new to the investing game, actually not completely new but have been away from REI for over 20 years. So I like to watch some of the presentations made by "gurus," though after doing that for awhile I find I'm growing weary of their marketing techniques. The one for this program, which requires you to sign up for a webinar at a specific day and time, is one example. I signed up, and showed up to view Cochran's presentation. These things are set up so that it seems like it is a live event, but it isn't. I was over 45 minutes into it when the power went off for a few seconds, causing my computer to reboot. I rejoined the webinar supposedly, but it started back at the beginning. Funny. And feels scammy. Hint to gurus, if you're going to play a pre-recorded presentation, just say so. Honesty goes a long way.
The bait for this particular one was some line about buying a house for $18.47. Interesting that on the spreadsheet shown on the webinar for that particular house, that number is never mentioned. That house was located at 61 Ernst, Dayton, OH. He said he bought it for $1320, sold it for $4000, paid a realtor commission of $1250, his "total in" was $70 and his net profit was $2128. Math? $4000 sell price, less $1320 purchase, less $1250 commission equals $1430 net profit (not $2128) - not sure where the $70 came in. And the claimed purchase for $18.47, not seeing that at all.
So, even if I were inclined to purchase a program, I think I would skip this one.
Investor · Dripping Springs, TX · Member since 2014 · 19 posts · 6 votes
12y
It has been my experience that the HUD homes in the Austin and Dallas markets have been going for anywhere from 88% to 98% of the HUD listing price at the investor period. The HUD listing prices are pretty close to the ARV of the properties. So it is difficult to for me to get the numbers to work to include a double closing, my fee, my buyers profit and repairs. I have taken Jon's Course. Great information, but appears to work well in certain markets.
Flipper/Rehabber · Bayville, NY · Member since 2014 · 42 posts · 12 votes
11y
I was looking for the Homestore.com website and clicked on this one by mistake: HudHouses.com, HudHouses seemed to have many more opportunities then HomeStore, which nearly zero in my area of Long Island, NY. Any thoughts on this?
Berkeley, CA · Member since 2014 · 5 posts · 1 vote
11y
I agree with some of the other replies that it really depends on your area and how much inventory is available. Here in the San Francisco Bay Area there are hardly any.
Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes
11y
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Real Estate Agent · Henderson, NV · Member since 2014 · 9 posts · 4 votes
11y
John is now offering his "secret" spreadsheet for $97. The spreadsheet actually is nice to have, I am able to keep track of properties I bid on and it calculates everything automatically. The only problem is I paid $997 for it a few years ago, along with some other training on wholesaling, so I feel a bit taken right now, but that was my fault. Of course, now everyone has the "secret" spreadsheet. I no longer bid in my area as I was never awarded a bid. I am working with another realtor and investor in another state where margins are better. When I finally win a HUD bid, I will post it because it will be a huge accomplishment since I have never won one..Happy investing..
Towson, MD · Member since 2015 · 9 posts · 2 votes
10y
Now Cochrane is asking $47 dollars. He has some youtube videos that may be good. I think the best for each of us that are new in the bizz would be to go to local REIA meetings. Such meetings will teach us what is working in our area in real time.
Real Estate Investor · Kalamazoo, MI · Member since 2015 · 120 posts · 37 votes
10y
@Chris Licavoli would you recommend the class to a new investor in today's market. And how was the class, is it just the material being sold of Web-based. Thank you for sharing.
Thanks for your inputs. Unfortunately these "gurus" have become mere GREEDY! Instead of that help-minded approach they have taken the fast route to making money by playing on people's mind