http://www.REIClub.com – HUD Homes Are A Great Resource For Finding Below Market Real Estate. Here’s A Quick Explanation On Investing in HUD Properties…
Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on investing in HUD homes.
What are HUD homes? U.S. Department of Housing and Urban Development
A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. HUD offers these properties for sale to both owner-occupants and investors
– HUD homes are usually appraised, then priced at fair market value.
– List Price usually accounts for needed repairs
– Usually sold “As-Is”
– Bidding process – highest net accepted
– Special purchase programs for teachers and law enforcement
Where can you find HUD Properties?
– Hud.gov – hud home store – daily listings and monthly auctions
– general public
– mortgage agencies
– non-profit organizations
– MLS – Search HUD properties
HUD Home Qualifications
– Almost everyone
– Cash buyers – majority
– Be able to qualify for loan
– Private lender or Transactional funding in place
– Financing – Hud does not cover financing
– Earnest money – deposit towards purchase price – secures bid and contract – ~$500
– Accepted – escrow – closing
– Declined – returned
– Failure to fulfill – forfeited
– Inspections – Yes and No
– starting out – yes – get an idea of what you are buying, repairs, etc…
– more experienced – a quick glance at the pictures, market analysis, etc…
– 90-Title Seasoning
– Does not apply to accepted cash overs, or existing FHA insured loans
– Only applies to new FHA qualified loans
– Flipping to an investor
– Renting – cash flow
There are thousands of highly affordable homes and apartments offered by HUD around the U.S. They create cheap opportunities for real estate investors to find real estate investments. The bidding process is rather simple, but competition can be fierce, so having a mentor with experience and connections can definitely make this process easier. When you start building relations with your bidding real estate agent and brokers, you will start to get insider info on properties before they even hit the auction floor. This is the end goal for most real estate investors seeking this strategy to find real estate.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.
HUD Homes – What is a HUD Home? #buy #homes in the #USA