Posted by Rufus on February 25, 2000 at 04:24:33:
Would this issue of trying to flip government properties brought in f/c, apply to Fannie Mae properties, also?
Hud Properties - Posted by BR
Posted by BR on February 23, 2000 at 22:35:32:
Anyone had experience buying from the HUD List since they started selling on the internet? Has your experience been good or bad as far as quality of deals are concerned?
I’m making $25,000 Profit off of a hud Home I bought online. - Posted by Tyrone
Posted by Tyrone on February 24, 2000 at 15:52:50:
I placed a Bid on www.Firstpreston.com. They wanted 45k. I knew the houses sold for 75k in that area. Got the appraisal for the value. Doing a simo closing for 75k. Selling the 67,5k for $.94 on the Dollar. the 10% Down payment, and the amount after paying HUD the 45k is around 25k in my pocket after closing. So it all boils down to how well you know your area, and continue looking. Don’t give up on HUD HOMES. What does it hurt to look?
Re: Hud Stats for Phoenix - Posted by Stacy (AZ)
Posted by Stacy (AZ) on February 24, 2000 at 13:44:49:
You may be interested in a post I made in May, 1999, and the subsequent replies. I tracked HUD sales for months in Phoenix, and posted some statistics.
Since then I’ve given-up chasing HUDs…too much a waste of time when other methods are so much more efficient.
Here’s the thread:
http://www.creonline.com/wwwboard/messages/may99/24470.html
Stacy
Your Tax $$ at Work - Posted by Rick W.
Posted by Rick W. on February 24, 2000 at 04:28:16:
I’ve been tracking the HUD properties for years, and sold them as a Broker five or six years ago to investors looking for long, LONG term return on their capital. Even then, they weren’t really deals that could be flipped (for the most part). The ready availability of the offerings, the classes given to Realtors to teach them how to sell the properties, and the low downpayment requirement/low interest rates made them easy sells to novice investors that didn’t know what true net profits were.
On the other hand, since you and I subsidize the program with our tax dollar$, I guess we should be glad they are recovering our money they had already given to the mortgage companies, plus some potential profit. I would rather see it that way than to have the properties sold for pennies on the dollar and pay for their mistakes out of my back pocket.
The good news is that if you learn more creative ways to get deals, you can let the novices find out about the real world the hard way, and survival of the fittest will cause it all to work out.
Re: Huds Too High - Posted by Rolfe Mpls/StPl
Posted by Rolfe Mpls/StPl on February 23, 2000 at 23:22:21:
BR
My past experience with HUD has left me ignoring all HUDS. Minimum bids required by HUD are too high, and the competition raises prices further. For the properties I looked at, HUDS’ minimum number, plus needed improvements equaled the FMV of the property. I need more room than that to operate.
Why is the government involved in profit taking where the people have no control of the process? Why should HUD set minimum bids, and make money off the small business owner? Last I checked, the government was supposed to serve us.
Good Luck, Rolfe
Re: Hud Properties - Posted by Dave T
Posted by Dave T on February 23, 2000 at 23:08:06:
I closed on two HUD properties last December. Not sure what you mean by “quality of the deals”.
If you are referring to the quality of the properties being marketed, the fact that HUD properties are marketed and sold using the internet does not affect the “quality” of the property.
Perhaps if you clarify your question, I might be able to give you a more specific answer.
Re: In what city are you finding 60% HUD deals? - Posted by Stacy (AZ)
Posted by Stacy (AZ) on February 24, 2000 at 16:03:51:
These just don’t exist in my city. I wasted many, many hours of time tracking HUDs. Time is better spent finding motivated sellers, here.
Stacy
Re: Hud Stats for Phoenix - Posted by Bill K. - FL
Posted by Bill K. - FL on February 24, 2000 at 19:35:35:
Hi Stacy,
Have the same problem down here with HUDS. THe only investors I know making money with them are flipping them to newbie investors who think they are getting a good deal. Some people don’t have a conscience. But I guess a buck is a buck. I wouldn’t do it though. HUDS use to be a good deal a while back but not now in my opinion. Like you I don’t waste time with them. They are asking close to ARV AS-Is and most of them need a lot of work. Check out the VA F/c. Down here they come out once every three weeks and are usually in better shape than the HUDs so you can do a simultaneous flip with them to an owner occupant. (On the last HUD house I tried to flip the buyer came back with an home inspection report for 25K in repairs!)
excellent post Rick W & MPLS - Posted by RR Smith
Posted by RR Smith on February 24, 2000 at 04:47:47:
This is exactly what I try and point out to people about the HUD homes. The thin profit margins USUALLY preclude anyone but a beginner from diving into the buz, unless it’s a sellers market.
In fact that would be one of the ways to tell it’s a sellers market,
the amount of profit margin left in HUD deals.
Re: Huds Too High - Posted by Bill K. - FL
Posted by Bill K. - FL on February 24, 2000 at 19:43:43:
Hi Rolfe,
The reason HUD properties are not great deals anymore has to do with the fact that HUD privatized its marketing of these properties. So now there is another “middle man” in the process. By the time everyone gets paid on these deals there is not much let for the investor. I think it remains to be seen if this will work out. HUD usually changes everything around every couple years. The one thing that remains constant is the supply of homes. They keep a’comin.
Quality of Deals are… - Posted by BR
Posted by BR on February 24, 2000 at 08:06:44:
deals that you can ‘buy right’ so as to make a profit.
Re: Hud Stats for Phoenix - Posted by Bill K. - FL
Posted by Bill K. - FL on February 25, 2000 at 08:27:47:
Hi Rufus,
Most of the Fnmae properties I see have been fixed up by the lenders to get FMV. They also offer attractive financing for owner occupants. The exception is where it is a real junker needing extensive repairs and then I see investors overpaying just to get the deal. (Just my opinion) Since the RTC bailout the lenders don’t seem to be as motivated on price as they were.