Am I Bangin' My Head Against The Wall W/ This HUD Stuff? - Posted by Walt Carey

Posted by Larry on April 25, 2000 at 12:21:39:

Hi Laure -
where is “here” - what part of the country are you talking about?
Thanks - Larry

Am I Bangin’ My Head Against The Wall W/ This HUD Stuff? - Posted by Walt Carey

Posted by Walt Carey on April 24, 2000 at 19:41:26:

Well, now that this MHP we’re doin’ is startin’ to settle down, I can concentrate on some of my own stuff. B/c we got ALOT of HUDs down here, I thought I’d try my hand with it. Figured it would be good for doing some fixers. Good supply of houses available, not bad areas to play in. Found myself a good realtor, and started rockin’ and rollin’…so I thought.

Man, I can’t believe the prices these folks are paying! Some of this stuff is real junk too! I do my repair estimates, leaving enough in there for a nice profit, not a home run mind you, but a solid double anyway…but with my repair estimates, I still can’t touch the ones I’m bidding on!!! The bids are coming in at darn near HUD’s asking prices!

My question: is this HUD stuff a waste of time to do? I’m getting my feet wet in the foreclosure market here, as we’ve got a real QUICK timeline to the auction steps but I thought I’d give this HUD thing a whirl and see what happens. Not trying to sound pessimistic and I know you got to make alot of offers, but I have to wonder if its worth it.

Thoughts from you folks where there are alot of HUDs would be appreciated!


HUD? - Posted by sonicbiz

Posted by sonicbiz on April 28, 2000 at 24:57:39:

Please excuse my ignorance but as I am learning from you all here, could someone please tell me what a HUD is?

HUD… HA!!! - Posted by CurtNY

Posted by CurtNY on April 25, 2000 at 08:40:46:

I’ve been following a property for about 4 months now. It was a drive by I saw one day, 3br 1bth. HUD was asking $114,000, called a realtor friend and bid $35,000 (needless to say they didn’t accept). A week later HUD lowered the bid to $94,000, again I bid $35,000. Once again nothing. A week later I notice someone bid $85,000 but it wasn’t accepted. Yesterday I check and now HUD is bidding it at $74,999 (just goes to show how intelligent the people in HUD are!) This whole time HUD is stating the as is value is $114,000, where to they get this from? Anyhow I’ll keep following it and keep making offers until I buy it or someone else does. As Ron would say Some Will Some Won’t So What!!! Good Luck


Re: Am I Bangin’ My Head Against The Wall W/ This HUD Stuff? - Posted by Sandy FL

Posted by Sandy FL on April 25, 2000 at 08:36:29:

I think overall they are are a waste of time, too…at least here. The only HUD I bought that was a deal was because the original buyer bought a bundle of three parcels (3 houses) and split them up-flipped em to 3 different investors. Most of the overpaying public didn’t bid because they did not want 3 houses. Therefore the investor won the bid and the price was still sane.


Re: Am I Bangin’ My Head Against The Wall W/ This HUD Stuff? - Posted by Laure

Posted by Laure on April 25, 2000 at 03:21:05:

Hud’s are no deal here. I’ve stopped even looking at them unless my Realtor insists… but even then, I don’t get the bid.

I am concentrating in an area of 80 year old homes now that I can buy for 15 or 20 and sell for 55 to 59.

I looked at one today I might pick up for 5k !!! Haven’t seen the inside yet, but the outside just needs siding. Roof is even good ! Lady is going to prison !

Laure :slight_smile:

Re: Am I Bangin’ My Head Against The Wall W/ This HUD Stuff? - Posted by Jim IL

Posted by Jim IL on April 24, 2000 at 23:45:32:

In my area, HUD homes are a waste of time for the creative investor.
Or at least, I have yet to come up with a way to successfully buy them and profit.
They do seem to go at high prices.
I have seen many owner occupieds buy them, and also investors who have buyers in the waiting buy them, and carry the paper, on a wrap.
But, these are too skinny for me.
I have even seen on the HUD list homes selling for more than there appraised value, and these are homes I saw that needed work done, a lot of it too.
But, years ago the deals were there, so many think that when they do buy a HUD home, they automatically are getting a deal.

Good, let them is what I say, that leaves more other types of deals out there for us.

I’ll continue to go after the homes with problem sellers, and hopefully get to them BEFORE they get too close to losing them to the lenders.

hope this helps,
Jim IL

Re: Am I Bangin’ My Head Against The Wall W/ This HUD Stuff? - Posted by Bill K. - FL

Posted by Bill K. - FL on April 24, 2000 at 20:12:24:

There are alot of HUDs everywhere there are Neighborhoods within the FHA maximum loan amounts. You won’t get an argument from me on how many people are overpaying. I would only look at the uninsured properties (UI) on the list and track them as they are reduced in price. I ran across one today that had been bought buy a newbie in August who paid too much and still hasn’t touched the property. I called him and he said he wanted to unload it. Guess what? If I buy it he will lose at least 10k from what he paid. Not to mention his holding costs and buying and selling closing costs. HUDS are a small part of my business but I do keep up with them and will bid on one every now and then.

Yes and No!.. - Posted by David

Posted by David on April 24, 2000 at 20:03:15:

The prices are higher since the privatization of HUD. There is more publicity, more bidder, more competition, higher prices, and longer periods before reductions. We have one here that they have been selling since before the private act for 18 months and only lowered the price once, even the unsiphisticated are passing on it.
But on the other hand with the discerning eye you can spot the good from the bad, the cheap to fix up and the expensive. Use your talents to get the best deals.
One technique used by some pros is to over bid the houses that you really want and are sure that you can turn a profit. And don’t worry about the ones that get away because somebody paid too much, it won’t be you.