Re: HUD Still not Source for Deals in Phoenix - Posted by JohnB_NJ
Posted by JohnB_NJ on May 10, 1999 at 19:50:12:
I fellow investor just won a bid on a HUD sfh. Small house 3/1 around 950sq ft. Anyway, the house was listed at 52,500. The home needed cosmetic work. ARV around 72,000. The guy bid 64k and of course won. But he already had a buyer lined up and is planning on selling it for 80,000. Now, this guy makes money. And he does so by paying more for the houses. He out bids the competition. Besides, he doesn’t care that he will lose 500 bucks that he has tied up if he lets the contract fall through. He basically has that house locked up for 60days and lines up a double close retail flip. He puts buyers in his homes with not so good credit. He takes back some of the financing and gets them an FHA loan for the other 90% or better. Also helps that his girlfriend is a loan broker. Well, actually, he does the loan work. She is just the license holder.
I guess he likes the fact that he can tie up the property for little money and have it for 60days to get his retail buyer financed. His pay day on that deal will net him 10k easily.
Personally, I have not purchased a HUD home… but the one this guy purchased (well, under contract), I had a bid in at 52,999. well worth it if I could have gotten it…NEXT!!
Good Luck and keep at it!!