Welcome to Part 2 of HUD Homes 101: What Every Real Estate Investor Needs To Know
In Part 1, we went over what exactly HUD homes are, how they’re located, the bidding process and the importance of the Proof of Funds letter. (By the way, those POF letters are provided in my REI Trifecta program, click here to check it out and start generating your own verifiable proof of funds letters now!)
In part 2, you’ll learn about the inspection period, gaining access to the property, closing the deal (so you can get paid), as well as must-know
Today’s post is all about…you guessed it…HUD homes.
There is much to uncover in this two-part blog series…what are HUD homes, what does the investing process entail, how do you find HUD homes, etc…But first, let’s touch on the basics of this type of property.
Simply put, the term “HUD” refers to the U.S. Department of Housing and Urban Development.
A“HUD home” is a 1-to-4-unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD then becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.Continue Reading...
How do you know if an investment property is a truly GOOD deal?
I get this question often and the answer is…there are several simple, yet effective, ways to figure out if an investment property you’ve found makes sense as a deal for you.
Let me be very clear, it’s not about whether I LIKE the property. That has absolutely nothing to do with it!
Pro Tip: Take emotion out of the equation when evaluating an investment property.
You see…to me, these houses are simply inventory. In fact, some of the deals I do these days are on investment properties
The world of real estate investing is full of “do this” or “don’t do that”, but do you ever wonder whether you should be doing deals with institutional versus private motivated sellers?
After all, it’s always good to have options!
People ask me all the time if I focus on deals that are primarily with private sellers or institutional sellers. And then, the inevitable next question—which is BETTER?
My answer: well…I actually do a mix.
I do a lot of HUD and bank foreclosure deals and of course they are institutional seller. Made an offer on one just this morning