OfflineI am told by my realtor that HUD runs an 87% rule when selling a HUD home. That they need to make 87% of the asking price after everything is paid out, is this a hardline rule? We are looking at some HUD's and they are already discounted, so even with the repairs, and at 87% of asking price, we will be below 75% fmv, but I want to pay the BEST, LOWEST price. When he and I started talking about making deals he was a little cautious about low balling but he sure has no issues now, thats why I am asking about this HUD deal now. Thanks for any advice on this one.
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SEMPER FI
GET SOME!
with REO's as well...which is what I am focusing on right now. The contact I have (pretty reliable) has told me that the Banks / Lenders are accepting exactly 85% below their asking price...nothing more and HUD / Fannie Mae is "around 87% / 88%". The more I delve into it, the more I am seeing that when they put a "listing number" out there...they are making it 15% (down here) above what they will take as a bottom number. Just what I am hearing.
Good Luck!
Jon
Jon A. Lubin
Investment Properties Group L.L.C.
Birmingham, Al.
www.connectedinvestors.com/investmentpropertiesgroup
"You Miss 100% of the Shots You Don't Take" Wayne Gretsky
Yes, I've seen about the same thing as well. I bought a HUD property a year ago and offered $50k on a $63k listing price and it was accepted. I also wrote in the offer $2500 toward my closing costs so it turned out to be a pretty good deal! The only thing with HUD, their contracts are firm (no assignments, can't resell for a price more than 20% higher within 90 days).
- Tom
If I have your numbers right, with the $2500 towards closing and getting it for $50k, you got it at about 75%, not even close to the 87% rule, am I seeing that correctly?
SEMPER FI
GET SOME!