Wholesaling REO’s and HUD’s

[Account Closed]

Good idea or bad idea to wholesale HUD homes or REO's?

[Greg H.]

Originally posted by @Suzanne Griffiths:

Most HUD homes you have to hold for 90 days before you can relist or sell at a higher price. You can create an LLC for the purchase of that property and then sell the interest in that LLC, buts you'll want to work with a real estate attorney to make sure all the contracts etc are done correctly.

For REO, in Minnesota, you can but most sale agreements say you have to get the seller permission to assign. Most are OK with it they just want to get their part. Best strategy is an A-B/B-C close, but you'll want to make sure you account for the extra closing costs.

You do not have to hold a HUD home for 90 days before you resell. If bought during the investor period it can be resold immediately. You might be thinking of FNMA which has a deed restriction prohibiting the sale(or encumbrance) of more than 120% of the purchase price for 90 days