RAO, HUD's, LOA's oh my!!! :D QUESTIONS! :)

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RAO, HUD's, LOA's oh my!!! :D QUESTIONS! :)

Nichole Gabriel
Interior Designer/Home Stager · Dallas, GA · Member since 2013 · 202 posts · 9 votes

Hi all, I just came back from driving for dollars today! SOOO much fun, we could have done it all day, but the sun went down and we HAD to come home! LOL! I had no idea there were SO many options out there when it comes to vacant properties, so I did come home with a few questions!:) any and ALL advice would be so appreciated! and learning all this should be fun, so here goes:

1. I found quite a few homes that had that banks "we have found this property to be vacant" sticker placed by the field service company the bank hires. I spoke to one neighbor who said that house was vacant for a year, and the bank came about a month ago to put the sticker in place. So, is it possible to do any type of "wholesale" deal with the bank? Would love to hear your thoughts on that!

2. Saw some vacant HUD homes being sold by agents, are these wholesale-able? AND vacant homes being sold by agents, are they off limits? what is the "etiquette" there?

3. I am going to assume that if I see a home that is already being rehabbed, that it is already in an investors hands and there is nothing more to do there, right?

4. I found one house that had a court document on it saying something about being in court on the 31st of the month.. couldn't understand a LICK of it! It was a pretty thick document, but I could only see the first page since it was in a stapled sleeve. Any idea what that's about?

5. I found some homes for rent by holding companies? Do we treat these the same as landlords? or not at all? Also, a for sale by owner home which the owner was also willing to finance, and/or rent? Do we treat them like a landlord,or approach them like a tired seller, or assume they are looking to hold?

6. I found a door tag in one of the houses, does this mean I'm too late? :)

7. Can we wholesale residential properties that have been zoned commercial to a commercial buyer, or is it waaaay overly complicated?

8. and finally, my sister called me today(she doesn't know I was thinking this!!!) to tell me that she found a home she loved, the owners father was there and said the son has had the house on the market for a year, but has moved closer to his family. She loves it, but I know she has bad credit. Is this a situation where a LOA (lease option assignment) would work? -- I am going to ask for an explanation of this on the forum, because I tried to understand how it works and couldn't really get it!:D

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  • Travis Daggett
    Real Estate Consultant · Eugene, OR · Member since 2013 · 178 posts · 39 votes
    13y

    Nichole-

    I can answer #2. We've wholesaled several HUD homes. I've done a training video on it and I can recommend a good book, too. Let me know if you want to know more!

    Travis

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  • Nichole Gabriel
    OP
    Interior Designer/Home Stager · Dallas, GA · Member since 2013 · 202 posts · 9 votes
    13y

    Thank you Travis Daggett! YES! Absolutely interested in learning more! Keep it coming! :D

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  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y
    Originally posted by Nichole Gabriel:

    1. I found quite a few homes that had that banks "we have found this property to be vacant" sticker placed by the field service company the bank hires. I spoke to one neighbor who said that house was vacant for a year, and the bank came about a month ago to put the sticker in place. So, is it possible to do any type of "wholesale" deal with the bank? Would love to hear your thoughts on that!

    This is likely an upcoming auction and/or REO candidate. There's no much you can do here except:

    1. Try to contact the owner. If it hasn't gone to foreclosure, you may be able to purchase it (if he has equity) or help him through the short sale process and purchase it that way. Wholesaling will be difficult for a short sale though.

    2. If it hasn't gone to auction, you can buy it at auction. But, you'll need cash, and won't be able to wholesale it prior to buying it.

    3. If it's an REO, you'll need to wait for it to hit the MLS.


    2. Saw some vacant HUD homes being sold by agents, are these wholesale-able? AND vacant homes being sold by agents, are they off limits? what is the "etiquette" there?

    All HUD inventory is purchased through the HUD website:

    http://www.hudhomestore.com

    You'll need a licensed agent to put in offers for you.


    3. I am going to assume that if I see a home that is already being rehabbed, that it is already in an investors hands and there is nothing more to do there, right?

    It is most likely already purchased by an investor, but who knows...


    4. I found one house that had a court document on it saying something about being in court on the 31st of the month.. couldn't understand a LICK of it! It was a pretty thick document, but I could only see the first page since it was in a stapled sleeve. Any idea what that's about?

    It might have been a notice of upcoming trustee sale (auction) of the property. In this case, see my comment #1 above under your question #1.


    5. I found some homes for rent by holding companies? Do we treat these the same as landlords? or not at all? Also, a for sale by owner home which the owner was also willing to finance, and/or rent? Do we treat them like a landlord,or approach them like a tired seller, or assume they are looking to hold?

    For any FOR RENT or FSBO, you'll want to speak with the owner and see if he's interested in selling. I was out looking at a house with an investor friend last week. We were waiting for the seller to arrive, and my friend saw a FOR RENT sign across the street. Before I realized what he was doing, he had the owner of the rental on his way over to discuss selling it. My friend and I saw three more of his properties that day that he was happy to sell, and we are currently negotiating for two of them.

    It's amazing what a phone call can do (it was a learning experience for me)...


    6. I found a door tag in one of the houses, does this mean I'm too late? :)

    Not sure what you mean by "door tag"...


    7. Can we wholesale residential properties that have been zoned commercial to a commercial buyer, or is it waaaay overly complicated?

    Sure. Though dealing with commercial real estate can be a lot more tricky than residential, and commercial sellers, agents and buyers tend to be a bit more sophisticated than residential. (in my experience)


    8. and finally, my sister called me today(she doesn't know I was thinking this!!!) to tell me that she found a home she loved, the owners father was there and said the son has had the house on the market for a year, but has moved closer to his family. She loves it, but I know she has bad credit. Is this a situation where a LOA (lease option assignment) would work? -- I am going to ask for an explanation of this on the forum, because I tried to understand how it works and couldn't really get it!:D

    We'd need more details...I'd start another thread...

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  • Nichole Gabriel
    OP
    Interior Designer/Home Stager · Dallas, GA · Member since 2013 · 202 posts · 9 votes
    13y

    J Scott, you are the MAN! Thank you SO much!! This information is invaluable! I will most certainly start another thread about the leasing thing.. Thank you! :)

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