HUD Wholesale

[Jordan Sloan]

Hey I want to get HUD home and possibly Wholesale them. I want to know if there is a process to doing it that can make it easier for a person that doesn't have a lot of time or money to dedicate to it but, wants to eventually make real estate investing their prime focus

[Jake Thomas]

Why does everyone want to wholesale HUD homes. 99% of the investors you would sell it to would have already seen the property on the hudhomestore and either tried to buy it or passed on it. Why would they buy it from you for a higher amount? HUD homes are not like normal wholesale deals. You actually have to have funding and be able to purchase the home. You will have to do a double close meaning you buy the house then turn around and sell it to whomever you sold it to. You will have to pay closing costs twice, title insurance when you sell and a high rate of tax on the income which pretty much wipes out any profit you would have made. There are no escape clauses once you sign the contracts and send them back and they are not assignable (hence the double close). If the property is over $50K its a minimum of $1000 EMD. You also have a tight timeline to close in the investor period.

Long story short be creative and go find off market properties to wholesale, anyone can try to wholesale a HUD home but none are ever very successful with it.