Posted by Tim (Atlanta) on May 30, 2000 at 14:52:58:
You know, I think I have heard it a thousand times “If it is on the HUD list, it must be a bargain!”. Well, that is a bunch of hogwash. I have watched the HUD list for over 3 years now. In that time, I have seen maybe 3 bargains in my area. Out of over 100 homes. I also attended several HUD auctions in person. A majority of the properties went for list price or better. NOT a bargain in my book. Homes that need repairs often sell for the HUD appraised value. Now that is nuts!
Im a new investor and i have been looking all around for advice. Ive found some sites that say that HUD auctions are a great deal. Is this true or should i try to stay away from them?
also, if anyone can help me get started i would really appreciate it. any advice or anything would be great.
We probably buy about 3 HUD properties a year … but like anything else,you have to know what you are doing.
Most of ours need work. You have to know your price and stick to it. Some properties go way higher than they “should”. Trust me, when we buy one, it’s cause the price is right.
We also work with a very good broker who knows her HUD stuff.
Know your area, know your values, know your properties and you will be able to figure out which deals work for you and which don’t. IT’s not HUD, it’s the deal.
Dear Eli, Hud auctions are fine where I live. Not many Hud properties that need work even get shown here and if you keep in mind to only bid what you are willing to pay and factor in a profit, then you should do fine if you get the property. There are even some advantages with Huds including their paying closing costs and broker commissions, and sometimes financing them. I am meeting with my broker tomorrow to put a bid on one here that has had no other showings or offers since last Sept. They are asking 34000 for it and I could flip it for 40000 immediately. I will offer 24 for it. T