Wholesaler · Columbus, OH · Member since 2016 · 62 posts · 8 votes
I have a question and hope to get a solid answer from a season invester. I'm Alli college kid with ambition to succeed in the RE and build my portfolio with renntal property's once I make few successful wholesale deals, with that being said my question is can you wholesale a hud homes? Can you put it under contract and sell that contract to an investor?
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
10y
HUD contracts cannot be assigned. Hud requires a tax id#(for and LLC or Corp) or SS# if individual and the property must be closed under that entity or name
HUD does not allow their contract to altered in any way so there are no clauses that can be added
HUD does require proof of funds or pre-qual letter along with proof of the entity before the contract will be ratified. Earnest money is $500 for under $50,000 and $1000 above $50000 and is nion-refundable for investors that fail to close
Double closing, Transactional funding and selling the entity are viable wholesaling options but I would strongly urge someone new to the business to partner with an experienced investor as all will require understanding and explanation to your end buyer
As of 2+ years ago, there are no HUD appointed closing companies. The buyer selects the closing company
@Alli Issa The Realtor that says he is providing you info of properties before they go to auction is just plain wrong. All HUD properties go through an owner occupant period before they are available to investors. HUD is not an auction at all but an opportunity to place an offer/bid on a daily basis.
Since the contract of a HUD home is strict... What if you're trying to do creative wholesaling (assigning your LLC rights to your end buyer) and you're end buyer doesn't follow through with the close or you're not even able to wholesale it to a cash buyer for some reason (like you didn't do a good ARV and nobody wants it). Can you back out of the contract/closing without any repercussions?
Since the contract of a HUD home is strict... What if you're trying to do creative wholesaling (assigning your LLC rights to your end buyer) and you're end buyer doesn't follow through with the close or you're not even able to wholesale it to a cash buyer for some reason (like you didn't do a good ARV and nobody wants it). Can you back out of the contract/closing without any repercussions?
The only repercussions for not closing on a HUD home is the loss of earnest money
Since the contract of a HUD home is strict... What if you're trying to do creative wholesaling (assigning your LLC rights to your end buyer) and you're end buyer doesn't follow through with the close or you're not even able to wholesale it to a cash buyer for some reason (like you didn't do a good ARV and nobody wants it). Can you back out of the contract/closing without any repercussions?
The only repercussions for not closing on a HUD home is the loss of earnest money