All Forum Posts by: Rosston Smith

Typically there are only a handful of properties in the country that are eligible for the program. A quick search of states with the most Hud properties show none available currently

Another stumbling block is the property has to be in the exact area you work in. For example, a teacher has to find a property within their school district. Even one block over does not qualify.

On a HUD bid only the bid price, closing costs and selling agent commission can be modified. So yes you can pay your Broker outside of closing to increase your net to HUD by up to 3%

You mentioned "Even one block over does not qualify" where are you able to find this information concerning distance from place of work?

I have been buying HUD homes for 30+ years as an investor and representing clients as a Broker. The last GNND client I had was the winning bidder and the bid was cancelled because the property was in the neighboring school district literally a block outside. Again, the property has to be classified as eligible and very few about 1% qualify. I see not one in the entire US at this time

How can you see not one? There have been roughly four listed every single week for the past six months in Georgia. There are six listed right now. I posted the link below.

https://www.hudhomestore.gov/L...

So as I stated not all HUD properties are available for the program. Go to the page from my link below and click on the GNND link(middle left) and it will show that there are zero properties in the entire country currently available for this particular program. Even pre-covid when there were 1000 or so HUD properties available at a given time, less than a handful would be GNND eligible

https://www.hudhomestore.gov/H...

When you click the "Good Neighbor next door" link, you then proceed to fill out the location information below and click search. Its not going to display all of the properties available in the entire country just by clicking the "Good Neighbor Next Door" link. You have to specify a specific state or zip code. There's plenty of properties available.

0 Votes

Atlanta, Georgia

Quote from @Greg H.:

Quote from @Rosston Smith:

Quote from @Greg H.:

Typically there are only a handful of properties in the country that are eligible for the program. A quick search of states with the most Hud properties show none available currently

Another stumbling block is the property has to be in the exact area you work in. For example, a teacher has to find a property within their school district. Even one block over does not qualify.

On a HUD bid only the bid price, closing costs and selling agent commission can be modified. So yes you can pay your Broker outside of closing to increase your net to HUD by up to 3%

You mentioned "Even one block over does not qualify" where are you able to find this information concerning distance from place of work?

0 Votes

Atlanta, Georgia

Quote from @Greg H.:

Typically there are only a handful of properties in the country that are eligible for the program. A quick search of states with the most Hud properties show none available currently

Another stumbling block is the property has to be in the exact area you work in. For example, a teacher has to find a property within their school district. Even one block over does not qualify.

On a HUD bid only the bid price, closing costs and selling agent commission can be modified. So yes you can pay your Broker outside of closing to increase your net to HUD by up to 3%

You mentioned "Even one block over does not qualify" where are you able to find this information concerning distance from place of work?

0 Votes

Atlanta, Georgia

I'm in the market for a GNND HUD loan, which is exclusive to first responders and teachers. One caveat to know is that I can only offer the full listing price of the home, no more and no less.

When my HUD-broker is submitting a bid for a property, HUD automatically prefills box 6b that pays HUD's listing agent for the property at a 3% commission, however I can elect to remove the responsibility of HUD in box 6a to pay my listing broker by assuming that payment out of pocket.

The advantage of this, is the Net-To-Hud (7.) total at the end of the sale is higher, since HUD saves 3%.

The downside, is even if I offer full price for the home, I can't offer to pay the 6b costs, so the most I can offer is the listing price less 3%.

This puts me at an unfair disadvantage to acquire a HUD property, since other owner occupants can just offer the same price as me, and to pay the full closing costs and win the action, or just offer enough over me to make up for that difference.

Do any of you know a way I can increase the appeal of my offer to a HUD broker by increasing Net-to-HUD (7.) by any other means under the GNND loan requirements?

Thanks. Just trying to compete in such an aggressive market. I've included a sample of the bid offer page below for reference.

0 Votes

Atlanta, Georgia

I'm local to the area.

Here's a direct link to our meetup

https://www.biggerpockets.com/...

0 Votes

Looking forward to it!

0 Votes

Hello Nir! Taylor Home Inspections is who I recommend.

0 Votes

Whats the update?

0 Votes

Originally posted by @Rick Pozos:

Hey @Rosston Smith no one in their right mind would give up that 20k in equity for no reason. Find the people with the reason. YOU as the investor have to find the people who WILL give up the equity(or some of it) because they HAVE TO. As mentioned: death, divorce, and also loss of job, behind on payments, injury that has prevented working, etc.

When you find the people who have ISSUES, Those are the folks that MIGHT give up some of their equity to you. And like @Steve Vaughan said, appreciation is usually the bigger equity that they are giving up.

For your example they bought for 100k put down 20k. Lets say now the house is worth 200k because they bought it 7 or 8 years ago and recently lost their job. They are behind on payments and are about to get foreclosed. They might be willing for you to take over payments and give them the 20k that they originally put in. OR maybe you might do (1) purchase sub-to (2) give them say 10k in their hand (3) give them a note (20k or more or less)that has payments of $368 per month for 5 years. You get a great deal, they get some now, some for the next 5 years.

Make it so that everyone wins.

Great points here! I really appreciate the insight. Thank you.

1 Vote

Originally posted by @Philip Joseph:

Originally posted by @Rosston Smith:

I've owned multifamily in Macon, and currently stay near there in Houston County. I'm very familiar with the area. Let's work together.

If you have time, stop by the meet up and connect with other investors. We meet at 1200 at El Jalisciense, 1114 SR 96, Kathleen, GA 31047.

I'll be at the meeting tomorrow! Thanks for the invite.

1 Vote

All Forum Posts by: Rosston Smith

Rosston Smith has started 45 posts and replied 1438 times.

Post: Good Neighbor Next Door Loan - HUD BID Question

Post: Good Neighbor Next Door Loan - HUD BID Question

Post: Good Neighbor Next Door Loan - HUD BID Question

Post: Good Neighbor Next Door Loan - HUD BID Question

Post: New to Warner Robbins

Post: Warner Robins - Investor Lunch

Post: Inspection - Macon GA

Post: Mobile Home Park 1st purchase, need advice

Post: Subject To financing question

Post: Macon GA Flipping properties