Experiences With HUD Homes - Posted by SueC

Posted by frankca on August 13, 2000 at 12:58:41:

SCook85…Where is your market…1000 HUD homes!!!
I have died and gone to heaven!

Experiences With HUD Homes - Posted by SueC

Posted by SueC on August 12, 2000 at 22:37:01:

I am looking at some HUD properties, what are people’s experiences with these? One investor recently mentioned she avoids these due to the paperwork - anything else to watch out for?

Re: Experiences With HUD Homes - Posted by Rob FL

Posted by Rob FL on August 13, 2000 at 18:14:01:

I bid on HUDs, but I have seen very few bargains lately. We have about 40 a week go to bid and anything that is a bargain has about 20 people bid on it. The high bidder often pays market value for a run-down house.

As for the paperwork, big deal. As long as you have all cash or a prequalification letter, the paperwork is a piece of cake.

HUD is easy where I live! - Posted by SCook85

Posted by SCook85 on August 13, 2000 at 09:24:03:

Lately buying HUD homes has been very easy for me. I have gotten some great deals on the homes that I have bought from them.
As far as paperwork goes, I have no idea what your friend is talking about- (I don’t think this varies throughout the country). The paperwork is much less then anything else that I buy. They have a one page contract and a lead paint addendum, nothing else. Maybe it is because I submit cash offers- I don’t know.

HUD is definitely better in some markets then others, they have over 1000 homes in my market.

Steve

Not many REAL DEALS out there … - Posted by Rick Wheat

Posted by Rick Wheat on August 13, 2000 at 06:44:09:

on HUD Foreclosures, at least in my area. I used to sell them as a Broker, and made that determination because:

  1. HUD markets to all Realtors, plus makes them available online. Lots of people know about them.

  2. The attractive financing they offer to owners as well as investors (as long as they are willing to QUALIFY for the financing), also increases the competition.

  3. Since there are a lot of owner occupants willing to buy “fixer-upper” properties to move into in order to make “Sweat Equity”, they do not require the PROFIT MARGIN we need to have in order to generate some $$$ as investors. Owner/occupants are willing to pay more for the houses than we can afford to.

  4. Unskilled investors do not understand the TRUE COSTS involved in these “fixer-upper” properties. They underestimate the repairs and the other costs, which makes them bid higher than they should.

All these issues mean that there are really only a few
“GEMS” out there in the HUD/VA Foreclosure markets.

GOOD LUCK!!!

Rick Wheat

Re: Experiences With HUD Homes - Posted by Paul_NY

Posted by Paul_NY on August 13, 2000 at 02:56:13:

Some HUD foreclosures are not bargain properties. Do your comps first. Some sell higher than market value. Just do your homework.

Don’t let the red tape scare ya. After all, isn’t paperwork where all the money is made?

Just my 2 cents.

Happy Investing!

Paul