Posted by Jim Simons TX on December 14, 1998 at 12:54:47:
20 years ago I was a RE Agent. There were lot’s of good buys on HUDs. However, over the last year or so, I’ve looked into a lot of HUD forclosures and found there just wasn’t enough profit to justify the investment.
One area you might look into though is the foreclosures that are on exetended listing. Meaning the didn’t sell the first time around. I’ve found (for me anyway) that these properties needed far too much repair. - but it might be worth a try!
Posted by ROBERT on December 14, 1998 at 07:12:51:
LAST SUMMER I BOUGHT A HUD REPO,IE. HIGH BIDDER, CLOSED AND DID SOME REPAIRS AND RETAILED THE HOUSE. AFTER ALL THE CLOSING COSTS AND BROKER COMMISSIONS THERE WAS NOT MUCH PROFIT LEFT. ANY THOUGHTS ON BETTER WAYS TO HANDLE THIS OR LEAVE HUD REPO’S ALONE. ROBERT
Posted by Eric(CA) on December 15, 1998 at 24:05:35:
I would have to disagree. I think there are some great buy’s in HUD Homes. It really depends on your area. I’m am a Broker so I don’t charge a fee, so I can get a really good price. Note: about a 20% discount
You can check out the HUD bids that were accepted online – and notice that most all are very near the market price, even the ones that need lots of work.
There’s just not enough profit margin in HUD houses in our area at this time to go that route.
Posted by Dave T on December 14, 1998 at 18:23:35:
Last year I bougth three HUD foreclosures for my rental portfolio. I agree that there is not enough profit in most of these properties for flip opportunities.
However, when I can buy at a low enough price to produce a positive cash flow as a rental, then I might pursue it.
Posted by Jimbob on December 14, 1998 at 09:33:41:
Robert,
The first rule of thumb is don’t buy HUD repo’s, they rarely payoff for investors unless the market is in dire straits in your area.
You’re better off going after FNMA repo’s or pre-foreclosures, even fixer houses that are not in foreclosure can be good deals too. Just because it’s a foreclosure, doesn’t mean it’s a good deal.