Discover a little-known method to make a killing investing in real estate – the answer might surprise you.
The way to make a lot of money investing in real estate is by imitating Donald Trump, right?
Buying and selling hotels on the strip, developing a few golf courses, and building shopping malls might be how some high-rollers make big bucks investing in real estate, but who’s got that kind of investment capital at their fingertips? Besides the Donald, very few people, as it turns out. But that doesn’t mean you can’t go out and make yourself a nice six or even seven figure income year in and year out by investing in real estate. That’s right. By following a few simple guidelines and sticking to the basics, almost anyone can make a very nice, comfortable living in real estate.
HUD (Department of Housing and Urban Development) is a government agency which backs up homes purchased with FHA financing. If the home goes into default, HUD forecloses on the property and sells the home to the general public. The wholesaling of these homes occurs when people buy the homes at the lowest possible price and then re-sell them.
A bank-owned home is a home backed by Fannie Mae or Freddie Mac and carried by the bank. When the home goes into default the bank forecloses and takes possession of the home. When you’re bidding on bank-owned homes you’re forced to play by their rules, and every bank has their own rules and system.
The Advantage of Buying HUD-Owned Homes
HUD sells their homes through a totally computerized system with no people involved in the bidding process. The HUD system is the same across the country. Once you understand their computer program guidelines, you know where your bid needs to be in order to buy the home. In many cases you’re buying the home so low you can re-sell it to other HUD home buyers.