Anyone Have Any thoughts about John Cochran's Wholesaling Mastery?
Specifically interested in knowing how he is able to secure these HUD homes at such a low cost (he states that it is a secret tactic he uses.)
Any insight appreciated!
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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.
Regards