Wholsaling HUD Homes

[Ben Dunk]

I am looking for some advice from someone who has successfully done this.

I have heard about double closing, and selling an LLC. Any advice appreciated.

[Stephen Dillard]

I've closed a few HUD homes this past year and I have done it two ways.

1. Double close "transactional funding" expensive plus two sets of closing costs. I would only do this if my fee was at least 10k. If your looking to make anything lower, it will really eat up your profit.

2. Add your buyer to the hud contract, not difficult, just means getting it approved by hud, which normally doesn't take that long. Then "quit claim" yourself off of the deed after closing at the title company. You would have your attorney draw up the "quit claim" and by signing it, you are removing yourself from being an owner and having any claims to the property. It is best and easier if you use an attorney familiar with the process and has worked with the same title company that you closed on the property with before.

Wholesaling HUD homes is not difficult, a lot of paperwork but if you stay in communique with the HUD agent, they are pretty straightforward. I have tried to buy in an LLC and then sell the LLC to the endbuyer before but most endbuyers want to buy it in their own LLC or name, just my experience.

Just wanted to give my thoughts, good luck.