All Forum Posts by: Ryan K.

Thanks Greg!

Anyone know what the listing agents for HUD homes get for their commission? Is it a flat fee or a percentage like 3%? Trying to figure out what the NET amount would be to HUD if I bid on a house.

Looking to rehab a 1950's rancher, it needs to be rewired due to the old existing knob and tube wiring. It also has original plaster walls in decent condition. I was originally thinking a full gut job in order to make it easier to rewire, but considering the walls are in good shape would it be easier to save them and have the electrician just fish wires through wall (which adds to the electrician labor)? Both the crawl space and attic are wide open. 3 bedroom, 1 bath, approx. 1000 sq ft total. Any opinions on which method would be the most cost effective?

I agree with Chris, the REO properties have dried up and with the market being a sellers market the banks are getting top dollar for foreclosures. The ones that come on the market dont meet investor's criteria now, and the bank wont negotiate much because they are getting close to asking price.

A local bank might be willing to loan on properties in that price range. If you have an account or live nearby one they might be willing to help.

Looking at a SFR for a fix and flip that is near but not in a FEMA flood zone according to the maps I found on the FEMA website. Looks like the flood zone (100 and 500 yr) cross the property but the actual structure of the house is about 25 to 50 feet outside the 500 year zone.

Does anyone know any implications to this situation? Could the maps change and as a result the structure be in one of the zones? Or will the proximity of the structure to the designated flood zone be a deterrent to future resale? Any insight is welcome.

Salt Lake City Utah seems to have quite a few people moving in from what I've seen while visiting and hearing from others that live there.

Thanks for the information and perspective. I found a website, hudhomevalues, with all the accepted bids, which is very helpful too. Seems to vary from property to property, some go for more than asking, others for much less.

I ended up passing on the particular house in my original post, it had a large foundation crack that need to be addressed along with other major items and I couldn't comfortably get anywhere near the price they were asking. I'll be curious to see what it goes for though.

I'm not convinced there is another bubble...yet. Most of the SFR purchases the past several years are investors paying cash, or homeowners with at least 20% down. I have started to see some 5% down payments lately but that is only for people with high credit scores and history. The subprime lending practices in the mid 2000s really fueled the first bubble. We dont have that now. Foreclosures are low too. With interest rates expected to rise later this year we may see things start to cool a little, but rates will still be historically low. Also construction of new SFRs is low, helping fuel the demand for existing homes and the prices. They just done seem to be building many SFRs at this point, seems like they have been concentrating more on multi family units and apartments.

Kevin, I'm another Virginia resident. I can't agree more with what you stated. Most people lack a basic understanding of finances. I see it all the time and it really bothers me.