My First Accepted Offer and Something Learned
My wife and I got our offer accepted on a nice little 2br HUD foreclosure, and in the process learned something that is good to know. What we learned is, when dealing with a HUD forclosure, don't low ball and expect a second chance. HUD had it at $57k and we came in at $50,500 after not hearing any news for a few days we put in another offer of $54k (as much as I was willing to give for the house). Our offer was accepted but it was't the $54k we expected, turns out HUD accepts or denies offers in order received, so we ended up paying only $50,500. I can't say this is how it always works seeing as this is my first deal, I am just glad I didn't come in too low. FYI, HUD is super particular on their pre-approval letters.
Comments (5)
Great progress @Ace Saxon! Got my first house as a HUD repo as well!
Ethan Peyton, about 9 years ago
Congratulations on your first deal, Ace! Great job. And hey, these lessons learned are so valuable to share here on BiggerPockets so I'm glad you're doing that. What are your next steps on this deal?
Kent Clothier, about 9 years ago
The next step on this one is financing, that should be straightforward, going with conventional with 20% down. After that a mild rehab and then put a renter in it. I have a renter lined up for this house or the one I am putting any offer in on Monday. If the offer is excepted on the other the rehab will be more extensive on this one (finishing the walkout basement with another bedroom and bath).
Ace Saxon, about 9 years ago
Great work, Ace! I love that you're moving forward and putting the next deal in place before you finish the first one. (A lot of investors go one-at-a-time early on and this leads to a boom/bust business but you're doing it right).
Kent Clothier, about 9 years ago