Investor · Miami, FL · Member since 2012 · 136 posts · 5 votes
Is there some strategy for wholesaling HUD homes that I'm not aware of? For instance, I am on a few buyer lists and have received several emails regarding HUD homes. I will research the property and see the home is still held by HUD. I have been getting a lot of these lately, so what Im wondering is.... A) Are these investors actually bidding and winning on these properties only to risk $500-1000 EMD each if they don't move them? , or B) Are they in cahoots with agents who list these properties or know which one will be available to bid on so they can began advertising early? Not sure the later is possible buy wanted to get some feedback from people dealing with HUD homes. I have been noticing A LOT of these....
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
HUD bidding is all done online, so the agent cannot be in cahoots with anybody who's a buyer as far as getting bids accepted. the agent might make it possible for the investor buyer to view the property before it gets listed on the MLS, but even then there is often a first look period with no investor bids accepted.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
HUD bidding is all done online, so the agent cannot be in cahoots with anybody who's a buyer as far as getting bids accepted. the agent might make it possible for the investor buyer to view the property before it gets listed on the MLS, but even then there is often a first look period with no investor bids accepted.
Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
14y
HUD allows 45 days for closing, typically among the guys I know and work with, they spend that 45 days finding an end buyer.
They have at this point already, paid the deposit, typically non-refundable and they do end up having to close using either their money or someones money but they're not 'wholesaling' in the sense that they're assigning the contract.
The guys I work with don't make a gazillion bucks on all of them but they have proven to be at least worth the effort they put in it.
Investor · Miami, FL · Member since 2012 · 136 posts · 5 votes
14y
Right, Im assuming they are "double closing" on these properties if they find a buyer. But what Im getting at is I get numerous emails on properties that are HUD owned from the same people. They are well over 45 days old. HUD STILL owns them, so what I was wondering is if they failed to find a buyer and forfeited EMD on these properties (which would add up to a ton by now) or are they advertising the properties before they are even auctioned ( which doesnt make much sense unless they know they are going to be auctioned and have an interested party before hand...)
Real Estate Investor · Fort Lauderdale, FL · Member since 2012 · 2 posts · 0 votes
14y
They are simply taking the risk of loosing the earnest money and finding an in buyer with in the 45 days. There is nothing special about it. The whole seller does the home work on the property so that the investor does not have to. Which in it self deserving of a small profit.
Wholesaler · Fort Myers, Cape Coral, Naples, FL · Member since 2009 · 185 posts · 33 votes
13y
That makes much more sense to me now. The hard part, at least where I am is actually getting a HUD home. Rarely do they make it to the extended phase and when they do there is a reason for it.