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Updated over 11 years ago, 07/10/2013
Bid accepted on HUD property but it has a pool!?!?!?
I have flipped 11-12 HUD deals so far, basicly just wholesale them off and double close. I just won another bid but I didn't realize there was a pool until I went to the property.
Pool isn't in great shape and this neighborhood is average at best. Home appraised at 48K .
I haven't sent my EMD in yet, should I back off of this one due to the pool?
I would love some feed back etc. it's a 2 bed 1 bath appraised at 48K im going to try and wholesale it at 32K, but the pool concerns me. Any feedback would be great. Thanks Ronnie
It doesn't cost but a few hundred bucks to fill them in. Viola! No more pool.
That's true Aaron !!!!!!
I agree .. worst case is to fill it in.
Are you bidding without going to the property first?
How are you getting your end buy into the property?
It's 50/50 sometimes I go to the property sometimes I don't
The realtor I bid with gets me access to the property
Condition of pool, age, size, above or below?
Call three active Realtors local to the address, ask if its an asset or liability in that area. It is mid summer and a quick flip could benefit you if pool holds water and pump functions.
Thanks Dane I will hit up some local realtors in that area tomorrow
What is the condition of the pool? If its in really bad shape, you can always fill it in, that shouldn't be too expensive.
It's an in ground pool appears around 10-15 years old maybe. Looks like it's 3 ft - 8ft
It's in decent shape
Ronnie Boyd question from a newbie. Is having a pool a bad thing? I thought people liked pools. Does a pool make it harder to sell?
Kanise this seems to be a rental area in a pocket section of rentals. A investor who wants to rent this might see it as a liability in most cases. Plus this pool needs some work, but like several have mentioned it could be filled in.
A lot of folks from my REI and friends I have that hold rentals run from pools.
I am going to sleep on this one a night lol
A few hundred??? The dirt to fill it in will cost more than that? And you need to rent equipment to jackhammer the bottom (to prevent the yard from becoming a swamp) and a bobcat to break up all the concrete, so I'm told. I almost bought a house like this, and got two bids, the lowest was $3k, but I would have shopped harder if the deal had closed.
Good point David. I have always stayed clear of pools in the past on REO/HUD deals.
Hey Ronnie whats going on man.Hope everything works out with the pool. I got a few questions unrelated to topic.What type of discount do you average on hud homes from the list price and bid accepted. Thanks
Donte the bids I win are houses that have been on the market for 80 days.
To find out what they go for go to hudhomevalue.com and see what the winning bids in your area go for
Thanks for info.will do my research....
Oooh I see. I can understand that. That's good information for the future. Thanks. Hope it all works out for you.
Ronnie Boyd Wouldn't it depend on how much your bid for the property is?
Thank you Ronnie for that website. I poked around there for a few hours and noticed what those properties tend to sell for. I have one question though. What happens to the properties that go over the 120 day mark and are no longer available to bid on?
Kevin they are active until someone wins the bid. Usually by the 120 day mark with the price decreases HUD has it off the books. Meaning they have accepted a bid from someone
Shaka Farrier it would depend a lot on that. This particular one I ended up letting it go back to HUD. I didn't move forward. I saw the pool as a major red flag. A lot of it had to do with the neighborhood and area. No worries, on to the next one!!!!
If you put in a bid and get it and then don't sign the contract, does HUD do anything to restrict your future bids? I would think that would become a bit of nuisance for them at some point.
I'm just wondering, because I have put in a bid with them once and then backed out later. They had actually told me my bid was too low initially. Then 3 or 4 days later they came back and said they accepted my bid. I told them they already declined my offer and I've moved on. I'm not going to buy it now.
But that was a unique situation. They usually tell you the next day yea or neigh. And I was wondering if they say yes and you back out the same day, if they ding you at all on any future bids.....
Mike H. To my knowledge you are just dealing with a computer bidding system. So you wouldn't be flagged,black listed,banned etc for just not sending in paper work for a winning bid.
They simply just put it back on the site and continue taking bids or offer it to the back up bidder if it's high enough.
You are bidding blind to a computer system not a person, so I don't believe you could be put on any sort of black ball list from HUD...
Thanks. Thats what I was thinking. But my realtor seemed a little uneasy when it old her I was backing out. I told her that they already declined the offer and I moved on.
But I've also bid on houses before that I hadn't yet seen (I bid that day and then took a look at night) and would have not gone through with the sale had I gotten it at that price.
Good to know that there are no issues. Again, I wouldn't want to push my luck and be doing it all the time. But its good to know I can if it does happen.
thanks,
Thanks Ronnie, Im very interested in getting started with this type of investing. I have a couple other newbie questions if you would be so kind? First off, when you submit your contract, are you putting your "name/and or assigns" so you are able to assign the contract easily? How did you establish your buyers list? Are you using a right to show clause and making the contract contingent on finding an end buyer? Once again sorry for bombarding you with the questions I'm just really excited to start.
Kevin H you will bid on the HUD homes through a NAID certified realtor houses can be viewed at hudhomestore.com, versus submitting a contract. HUD rules state you can not assign the contract.
What happens is (at least in my area) I double close at my Atty's office which is a A-B , then a B-C. A=HUD B=ME C=My end buyer.
The contract isn't contingent on me finding a end buyer. You will have to submit Earnest money when the realtor sends your contract up for you. You just have to trust you have a good deal and you can find a buyer.
As far as my buyers list, I started very active in my local REI, networked with other investors, and market my deals like crazy all over the place to get it in front of people.
I hope this helps, I know this reply is kinda all over the place. If you have any other questions I will be glad to try and help.