Buying HUD properties is a simple, fast way to make consistent profits – quickly putting thousands of dollars in your pocket over and over again. Before we find out some of the tips to working with HUD properties, let’s define what a HUD property is. A HUD property is one that used to have an FHA mortgage, but the homeowner was in default and was foreclosed on. The government owns the home (they insured the mortgage), so the seller is HUD.
HUD’s process for liquidating their inventory of foreclosed homes is to list all homes at or below bank-owned prices. HUD has their own brokers with whom they list. When they first list a house, it’s only available to owner occupants for the first 15 days, not to investors. After 15 days, it’s available to anyone.
There are distinct advantages to buying HUD homes. All HUD homes get winterized, cleaned out, properly secured, checked regularly, have a sign-in sheet, and have their own lock system with multiple keys. There are no deed restrictions, and you can do back-to-back closings if you already have a buyer lined up.
But to successful navigate the HUD housing pool and make a profit you need to know a few secrets:
- HUD has a back-door bidding process.
- HUD tells you how interested your buyers are in a house (what the public thinks of it) before you buy it.
- HUD will take certain percentages off list price at certain times.
- HUD works off case numbers, not property addresses.
- HUD will accept individual offers over company offers.
- Each HUD home has a sign-up sheet in the house that each person who enters or works on the house must sign – this can be a ready-made buyer lead sheet for you once you take over the house. Any Agent who has been through the house is listed on that sheet.
- As an investor, you can make $5K-$8K on every deal. You can buy a house for less than HUD has them listed, and turn them around quickly, sometimes the same day.
To really learn and understand how to earn steady, substantial profits by selling HUD properties by knowing how to navigate and deal with HUD, then you’ll want to visit www.hudwholesaling.com – I have some amazing strategies to share with you.