Wholesaling HUD Property in MA
Hi Everyone,
I have a couple questions regarding wholesaling a HUD property.
I know there are seasoning requirements (90 day) and that supposedly you cannot sell for more than 120% of the purchase price. However, I cannot get exact/clear details regarding wholesaling a HUD to an investor.
I assume if my buyer is not a homeowner/Fannie/FHA buyer, the above rules would not apply? Is that correct? If my end buyer is a cash buyer, do either of the above restrictions apply?
I would plan to do transactional funding to close and then selling to an end buyer. I suppose I could also close in an LLC (one set up for this purpose) and sell the interest, but since LLCs in MA are over $500 to set up (state fees only), I doubt I'd go that route.
Also, the last time we successfully bought a HUD house was over 10 years ago (and we had a 203k loan). We made an offer of about 80% of asking price (not ARV), which was accepted. For those with recent experience, is that still the approximate rule of thumb for making HUD offers? I will only offer what I think is fair to pay (to consider condition, repairs needed, etc.), but I know that HUD tends to consider offers within a certain range.
Thanks,
Steph