Who wholesales HUD homes? When do you start title work?

Question

I have bought a couple HUD homes as my last flips, and thought about wholesaling some if the opportunity presents itself.  I was planning on checking the box for a 45 day close period on the contract, and in the event I find a buyer start the title and lien search at that point.  If I cant find a buyer in the first week or two, then its probably not a deal, and I will be forced to lose my deposit.  Does this process sync with other HUD wholesalers?

Account Closed · Answer

you can not assign a hud contract it must stay in the original name of the buyer

Mike Nelson · Answer

I understand, but you can certainly double close.  I see people do it here in Florida ll the time.  I have personally never wholesaled a HUD home

Dennis Pressey Jr · Answer

HUD also has an extension of the 30 day closing period. $375 last I checked.

Adrien C. · Answer

There is a group up here in IN that does this all the time. When they have an accepted HUD offer, they put down EM and start marketing the property. If they find an end buyer in the 30 days, they do a same day double close. Since it's 2 closes- they pay all the costs associated with the first close and the end buyer pays all the cost of the second close. Occasionally they lose a EM deposit because they don't find an end buyer and let it go back to HUD. It's pretty simple but you have to have the funds to close.

Mike Nelson · Answer

Florida wholesalers.  Do you typically make your end buyer pay all closing costs on his end?  Transfer taxes, title service, lien search, etc.  Things that would normally be covered by a seller...

John Rogers · Answer

Normally title work begins when the Buyer's agent receives an email back from HUD showing acceptance of the contract and EMD.

Mike Nelson · Answer

The HUD contract has  a 45 day closing box you can check.  I understand how a wholesale deals works.  Im curious when to start the title work.... when you have a buyer or immediatiely

John Rogers · Answer

The answer is an A to B, B to C, near simultaneous closing.

The timeline is...

You make an offerIt gets acceptedCONTRACTS ARE SUBMITTED AND emd CHECK IS DEPOSITEDHUD approves and accepts.Because you are an investor and by their definition, a cash buyer, from that point you get 30 days to close.

We do these with a number of different types of investors... The trick to wholesaling is your buyer's list and getting them to agree to the closing.