All Forum Posts by: Randy King

You have to supply HUD with proof of funds at time of contract and it has to have a good paper trail between the contract purchaser and the source of funding. I buy in an LLC and the funds come out of a personal account. I have to supply HUD with LLC docs showing that I have signature authority for the LLC and a letter stating that the funds are coming out of a personal account.

In our area there are 5 separate HUD keys and one will fit each HUD listing, so you will want to re-key because a lot of realtors and other people have the keys. I go to Lowes and buy a set of dual door and deadbolt locks for approx. $30 and it take about 20 Min to change the locks.

In my area there are 3 asset managers. Each one will reduce the properties at different days on market and different percentages. I monitor HUD daily and keep track of the inventory on an excel spreadsheet and keep track of each price reduction and days on market when the price reduction happens. Also, HIUD will list the sales info for a period of 10 days. I keep track of this also. Over a couple of months, you will see the tendency of each asset manager and what % off current list price they will take with each price reduction.

@Rhonda E. 

How has clearnow only reporting to Experian working. Seems it would be best to report to all 3. I am interested in helping build tenants credit so they can get mortgage qualified.

Are there any companies that report rental payments to all three credit bureaus?

Just came from closing two HUDs. There are no minimum hold times with HUDs. You will need to document your proof of funds if paying cash. If you are buying in an entity, you have to show documents that you have authority to sign for the entity. You have 2 days to get a complete contract package to HUD if your offer is accepted. The package has to be perfect so I would advise working with an agent who has done HUDs before, life will be much easier.

Here is a link to a similar thread:

http://www.biggerpockets.com/forums/92/topics/109793-national-real-estate-insurance-group---want-to-know-how-legitimate-they-are

It would be helpful for more BP'ers to jump in with their experience with NREIG. I have been a customer for over a year, but have not filed a claim and I am wondering the same thing regarding claims.

My biggest concern is the lack of account information. To make a change, you have to submit an online form where you get a generic email reply that the form was received. There is no way of knowing that the changes were made till you get your next months statement. I have been told that NREIG is working on a better user interface (I have been hearing this for over a year).

Other than concerns regarding claims and user interface, I really like their program and the ease of making coverage changes on a monthly basis. But there is no reason for not having a better user interface with todays technology. I should be able to log into my account and make changes and see the result in real time.

I kept responding to the asset manager and the last one said "The new policy took effect March 2014".

Just got another reply from the asset manager "The new policy took effect recently and the appraisal will not be provided by HUD for this contract." This may be a result of HUD not displaying the appraised value anymore on HUD Homestore. Could this mean that they listed this property above the appraised value? I had heard that they might start listing above appraised value.

I have just received accepted HUD contract packages for 2 properties each with a different asset manager. I received the appraisal on one of them but not the other. I contacted the asset manager and they replied "HUD appraisals are only provided for financed contracts". I have closed several cash HUDs over the past year and always received the HUD appraisal. Anyone have any info on this?