Wholesaling HUDstore properties in MD

[Stephen Miller]

I am thinking of pursuing this avenue. I just want to make sure it is legit to present a transactional funders POF letter, and do a double closing with these types of properties as I understand they keep the EMD no matter what

[Russell Brazil]

Wont work. An agent will only accept a contract that is standard, the one written by the Maryland Association of Realtors, and that contract is not assignable. Now you could try to actually by it and sell it....but that isnt likely to work either. If an investor wanted the property, they would just buy it straight from HUD.

[Jimmy C.]

The above statement is not completely true.

Your agent can prepare an agreement for you to purchase with your transactional funding POF letter (if you win a bid). If you have a closing agent that can handle double closings, then you can buy/sell the HUD property on the same day. Therefore the contract does not need to be assignable. You are simply buying and selling the property.

I would agree that its absolutely necessary that you win a bid low enough under the list price to have added value (get it priced right and it will sell). Otherwise most investors will simply wait you out, and bid when its back out on the market after you fail.

Deposits are non-refundable in my experience, no matter what you find during your inspection.  The closing agent will give HUD your deposit, because they don't want to lose their ability to close HUD transactions.

[Shari Peterson]

I have closed deals in Maryland using our Transactional Funding with HUD as the seller. I do a lot of HUD deals and have experience with them accepting our POF. It is possible they may request a bank statement to support it, but that doesn't happen very often, and can be provided if they require it.

[Crystal Smith]

Hey @Stephen Miller, sorry to impose on your thread (learning moment for me). I though there was a requirement to hold a HUD property for one year as a primary residence? Would assignment or rental be against the rule? Just asking, not trying to be a smarty. Thanks so much!

[Stephen Miller]

@Crystal Smith I am pretty sure that requirment is only for owner occupied properties and I am aware that you cannot assign the standard contract, I have a title co that would do a double close as long as its legal, which requires the wholesaler to pay closing costs on the middle transaction. Its just a matter of pricing that into offers

[Adrian Luckie]

You can definitely flip HUD homes in Maryland, HUD don't care what you do with the home you just have to buy it from them first and sell it back to an investor using transactional funding. Make sure its open to investors and you will have to make sure you are buying at the right price since you will be double closing which involves tow sets of closing cost fees. I would suggest you have a buyer/buyers line up first because you will loose your earnest money is you can buy the property, I believe that under 50k $500 deposit and over its $1000 deposit.

[Crystal Smith]

@Adrian Luckie and @Stephen Miller  Thank you so much for that info!!!!

[Nick Sabat]

@Crystal Smith HUD properties will indicate whether it is owner occupied or all bidders allowed. Tried my hand @ a couple HUD bids, but when you get beat out by a dollar - you start to wonder whether it's worth pursuing or not.

But, good luck to anyone who does this.

[Ryan Spinola]

I'm not going to say i know everything but this is just my opinion. Remember this is a business, which you probably know, and in business your reputation is everything. I don't know your background but if ur new to wholesaling, stay away from HUD and MLS. Why you ask? Because you, your dealing with brokers and agents. If you cant close on the transactions, your going to ruin your rep. Now that being said, once you have the finance to be able to close on the deal (incase buyer backs out), good buyers your trust (you really want to have buyers lined up so you can close it) and a good understanding of wholesaling, then you can try doing it. If u become the guy around town that backs out on deals, you might as well move or virutal wholesale.

Now listen, i know theres people thats going to bash me and say, "Im new and i did it like MLS/HUD" Well thats good for you but not everyone is the same. Just remember Reputation is everything! Because think about it like this, if im a realtor or broker and we did a couple of deals before and im doing another deal with someone else and the deal falls apart and i need to close it. Ill be like, hmm who can i call to close it. Oh yea Stephen. Ring Ring. "Hey its Ryan, i got a smoking deal, ill give you it for 20-30% w/e the number, can you help me out"? Thats how things happen.

Im going to be blunt. You can take my advice or not, idc because the only person who knows you best is yourself.

[Stephen Miller]

I agree with all of you, and I don't plan on staking my entire business on it. I have helped investors put in bids, after about 3 weeks of bidding on 15 properties daily we nabbed one. But in retrospect I can put in 15 bids in 30 mins, which is a lot more be said than a regular MLS contract. I am new and starting out, I have a limited marketing budget. I have done yellow letters with little success, if anything I tend get more listing prospects than true motivated sellers. I merely see HUDS as one avenue to wholesale, and I have learned from bidding on behalf of investors(and them backing out). That the best way to do it is to view the property and then bid on it.

[Ryan Spinola]

@Stephen Miller I agree with you, im going to send u a pm and lets talk.

[Kim Coleman]

@Stephen Miller I like the creativity in this approach.  However, if you line up a buyer prior to auction close, the buyer will know it's available via HUDstore.  What stops them from bidding against you and avoiding your wholesale fee?

[Stephen Miller]

you would have to market after locking it up or trust your buyers

[Phil Z.]

Why don't you just get a Real Estate License and make offers for your clients?  If they are loyal they will use you again to sell.

Don't get involved with banks .. that's really the goal in wholesaling.  Cash Offer, assign to a cash buyer. No banks.. no rules .. no problems.

[Malcolm Harris]

    Hey Folks,  does anybody on this feed have a custom made wholesaling contract that I can use with private sellers? Since I can wholesale using the standard non-assignable MD Realtor contract, does anybody else have one that I can use ? 

  Thanks for your consideration, 

      Please Inbox me , if you are inclined to help.

[Ikem Okwu]

check the biggerpockets file place under tools