Wholesaling HUD Houses
is there anyway to successfully wholesale HUD foreclosures? I am thinking I would have to have a private loan pre-approval letter to submit the bid. However, I am not sure on how to turn this into a wholesale opportunity. How would I assign it to someone else if I used a hard lender to get a pre-approval. I may be totally off base. Please, any ideas or thoughts would be helpful. Basically, I am trying to find a creative way to place HUD homes under contract and then wholesale them to a rehabber.
There is a 12 month holding period for hud properties and you also must occupy the property. You will be
required to sign documents stating so. It would not be profitable as any seasoned investor or rehabber knows to deal in hud properties as a seasoned investor rehabber we know there thier and how to find those easily .Most lenders at this time will only give us purchase price plus repairs and repairs must be done by a licensed contractor no profit in those for us please do not waste your time. Plus hud offers to purchase /contracts will have wording stating contract is non-assignable.
[ Edited by scoopsie on Date 06/10/2005 ]
Question 10: Can I buy a HUD Home as an investment?
Answer: Most HUD Homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are then available to all buyers, including investors.
Okay, I contacted HUD and they referred me to the company who actually handles their property sales (Michaelson, Connor, & Boul Inc). The answer was:
As an investor, there is NO length of time required to hold a house before resaleing it. He went on to say that you can sell the day after closing if you want. He said the 12 month requirement is ONLY for owner occupants.
The number for MCB is 1-888-622-7361[ Edited by CBuford on Date 06/10/2005 ]
Cbuford, that was my understanding too. The HUD website clearly tells you which house can be bought as an investor ( you can sell it any time you want) or which one must be owner occupied ( you must live in it for at least 12 months)
Owner-occupants can get 95% financing.
Investors must put down 20%.
Sure, at 5% down, they want you in for a year.
[addsig]
Wholesaling HUD home is an oxymoron. There is seldom if ever a deep enough discount on HUD homes to make a retail profit.
C-