Can a HUD HOME be flipped? - Posted by Paul Jones

Posted by Carol Kostic on January 25, 2000 at 10:30:58:

ONce they get to Further Reduced, they can become interesting… it’s amazing. You can actually find some deals again!

Can a HUD HOME be flipped? - Posted by Paul Jones

Posted by Paul Jones on January 24, 2000 at 18:36:18:

I am in an agreement with HUD for $45,000…the house is worth $75,000. I have a buyer with good credit. A note buyer said they would give me 86% for a first mortgage from $75,000. When I told him it was a HUD…he said it wouldn’t fly. But HUD said they are willing to to do a simo closing. The problem is how do I get around the seasoned title? is there a way? Is there a way I can tap into the equity without seasoning?

Re: Can a HUD HOME be flipped? - Posted by Bill K. - FL

Posted by Bill K. - FL on January 25, 2000 at 09:11:17:

When you say it is worth 75K. Is that the after repaired value or current as-is value? I have not known HUD to be so generaous lately as to sell a property at 60% of FMV. I ran into this same problem trying to flip HUDs to note buyers. I believe the fact you have to use HUDs Title company and the general impression that HUDs are usually in lousy condition make it harder but not impossible to do. The best I could find was a 70% cash out from the investor of the appraised value. If what you say is true about the values and you don’t want to develop the deal, why not sell to another investor for cash via simultaneous close?

Re: Can a HUD HOME be flipped? - Posted by Tom A.

Posted by Tom A. on January 24, 2000 at 23:38:58:

Try J.P.'s article http://www.creonline.com/articl13.htm

This can help you find out how.

Re: Can a HUD HOME be flipped? - Posted by Ray S(Fl)

Posted by Ray S(Fl) on January 24, 2000 at 22:00:55:

Paul,

I have done a Sim. closing with HUD’s title co. and it doesn’t sound like that is where the problem is. Will your note buyer fund a deal that is being flipped for retail value via Sim. Closing? That is the question.
If not I know that there are note buyers out there that will do this type of transaction.

good luck to you!
Ray S(FL)