HUD purchases

As far as I know there are not deed restrictions on HUD homes. You can wholesale them!

No deed restrictions that I know of but they often post that the first bidding period is open to non profits, cities and/or owner occupants, so investors come at a later time.

Judi

you have to see if the house shows 'extended'; if so, any investor can make an offer on it through a real estate agent registered with HUD; however, if it shows 'exclusive' you will have to wait...

also, when your offer is accepted, you will have to put up your EM within 24 hours, which is non-refundable, so make sure you do your due diligence before you put in your offer.

In addition to the great advice above, simply make sure you read the contract carefully. I've bought HUD homes before, and it specifically stated in the contract that it's not assignable, and any alternation of the contract makes it void.

Like Valerie mentioned also, once the offer was accepted, I had to send in a $3,000 cashier's check (on a $50k purchase), within 24 hours for the earnest money deposit.

- Tom

Ty, if you look at the detailed MLS sheet which you get from the realtor it gives you all the information you need.
Raymond

Thank you everyone for the advice and tips!! It seems kinda like a pain in the butt, however that's kinda why I like it because it's a little more work so I'm hoping others will pass on some of the HUD homes because they don't want to do the additional work to go with it.

I've been looking at some HUD properties too and most of the ones I saw had a time restriction of 15 days after which an investor could make an offer. One that I looked at actually stated that a COPY of $1000 EM should be submitted with all offers. I guess that's standard, but you still have the inspection period to find your buyer. Hopefully some of the more experienced guys can verify or correct me if I'm wrong. I've been kind of afraid of them but I think I'm ready to bite the bullet and go for it. Let me know how yours works out.

We have bought 3 HUD homes over the last 2 years. All of them we only had to pay $500. EMD Plus for us there was a fee to have the power turned back on but we received part of that fee back after closing. Make sure you do your home work. They some times need a lot of work so make sure your numbers are right for repairs. Good investing to you Albertson. We like HUD home deals.

Steve

I was looking at purchasing a HUD home, and my realtor told me they were being extremely lenient with letting investors make offers. I would have had to only put down $500 EM non refundable. Maybe this just happened to be in my area, I'm not sure. Lucky for me, the 15 days are now up and no offers on the property yet. It just dropped $5K in price and I'm ready to scoop it up. So in this case, time was on my side and a little luck as well. Good luck to you!

Gina

This has become very complicate to a lot of investors. First of all the restrictions can vary from state to state and sometimes the restrictions are set forth by a regional office. therefor no uniformity.

Basically there is a 90 day deed restriction in most states....not all. sometimes you can challenge a deed restriction by counter offering a no deed restriction contingency.

Also if your profit does not exceed 10-20 % the 90 days are waved. If you are selling to an investor the days restriction follows the home.

I know this gets confusing and the best way to get the information for your state is through the regional office.

Randy Bailiff
Dean Graziosi Real Estate Investment and life Coach