Loads Of Experience, No Cash
this may be taboo in this forum, if so let me know and I apologize:
I am a Veteran Realtor who knows the market and I am a new investor with limited resources.
I have followed the ebb and flow of hud home sales in our area for years and I have seen a definite rise in the number of investment homes (all bidders) that sell for lower than market values over the last year or so.
One in particular was a solid $160k home with minimal repairs that sold for 119k. There have been several lower priced homes in need of more repairs that went for excellent prices.
My question is: How can you find investors ready to bid on these hud homes? Or how can i come up with financing? A bankruptcy prevents me from obtaining bank financing for now.
I can do the research, general contracting etc - the resources for purchase is my main problem. I have run scenarios extensively on many homes for a few months now and watch as others snap them up and resell them. With my knowledge of the bid process and no need for the standard 5% fee I could pick and choose my investments - again the cash problem stops me - any creative ideas?
Thanks, TK
TK use the search function on here and read up on some of the articles. There is a TON of info to help you. I suggest you brew some coffee and go through the bird dog forum. You can generate some capital to invest quite quickly if you assign a couple of these deals.
As a realtor with knowledge of a specific area, you might want to team up with an investor who's seeking rental properties. They will value your expertise and pay closer to market than investors who want rehabs at dirt prices to fix and flip.
There must be a local real estate investment club so start looking there. Also, you will find plenty of msgs on here about using the classifieds to find investors. Basic stuff I'm sure you're already aware of but perhaps hadn't considered.
Mr Goodbye,
Along with TK, I seem to run across many of these opportunities tat I can't quite work on myself due to HUD regulations. ;O). I already bought 1 HUD this last year so have 2 wait about a year before I can purchase again. Heres my question; How would I go about assigning a HUD home I find, ie. birddogging, if the investor can just go and bid and I CANT. Do I write of a contract with him and get a notary just for queuing him in on the opportunity?
Scott
scott - are you an agent? if you are an individual you would have to partner with the investor to get in on the deal, if you are an agent then get him to go through you on the house (5% comm). i am not sure if you are looking to parnter , or get a finders fee or just buy another hud before the i yr mark by any means.
Tim
Tim,
Im not a agent. Im actually just wondering how to go about letting someone know about a opportunity, such as a great deal on a HUD home and if there is a contract I can do with them upon their winning a bid. Ive never seen one.
Scott
I am a newbie investor, so i may not be the best advisor......- it sounds like you are willing to do the legwork but need someone to provide the financing. That is actually what i was looking for when i wrote the entry above. I have had many investors offer to partner on deals i found and ultimately went to my father because he has the funds and I can trust him. If you partner, get everything in writing as to the profit split/responsibilities. This may not be enough protection in the end. maybe others out there have more specific advice on how to partner on hud offers.
Start out small read all you can about real estate investing, when you have determined what direction you want to go take a course or two on the subject and than start your business.
Real Estate Investing is just like being a realtor, you had to study, you had to go to school and than you hit the real streets of being a realtor from learning the day to day reality of it all.
It's no different as an investor!
How can you find investors ready to bid on these HUD homes?
Or how can i come up with financing? A bankruptcy prevents me from obtaining bank financing for now.
Your first key is research at TCI and your local community!
Read the following:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=771
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=231
[addsig]