Message from the VP Jeff Tumbarello
Back in 1999 and 2000, the good old days. You could log onto the HUD list. Identify a property. Let it sit and then finally buy it at the price you wanted (90 days later sometimes) unless Peter or Investors Network bought it first.
The Market is what happened. Our sleepy little town grew up. Back then the investing market was well defined. I stay in East Ft Myers Mainly, I did 3 deals in San Carlos and 3 In Lehigh but somehow could not get out of East Ft Myers, Peter stayed in Lehigh, Investors network dabbled in both. Then all you guys came along! LOL.
Do not get me wrong the HUD list still has a few deals on it. But, you can not make a living off it anymore. Here are a few tidbits about HUD Property’s. HUD will accept .87 of the list price plus you must put the commission on top. The current property’s go for 100 of the list price and up. One of the primary factors for that is Realtors have figured out that they can make a 5% commission on these deals. Another nice thing about the HUD list is you can role closing costs on top of the deal without having to educate the seller and his Realtor (sometimes yours too!) that you are not reducing their net just reducing your cash to close. As soon as the HUD list went main stream we lost our gravy train. Another factor that contributed to this is the pre-foreclosure market and the courts house steps having so much activity. By the time HUD gets the property it has been picked thru pretty well.
So this takes us to what role does the HUD List have now? It is great place for new investors with decent credit to primary residence invest. You can buy an owner occupied HUD home once every two years. Then trade when your two years is up. You could build a decent portfolio that way without a lot of money for down payments. With verifiable income and a 580 credit score you can get a 100 LTV loan on a primary residence. So you could acquire a few properties in a couple of years in nice areas.
Please email me with any questions at email@example.com