I’m rather new to wholesaling and was wondering whether this is even a possibility. An example would be finding a HUD home, putting a contract on it, and then assigning the contract just as in a regular wholesale deal. Does anyone have any experience doing something along these lines? Again, is it even a possibility? Thanks in advance for the help!
Zach
HUD’s contract is tight and not assignable.
You cannot assign a HUD contract…you would have to do consecutive closings. The feds are trying to tighten down on these, too with clauses that you can’t sell within XX days and make more that YY% profit.
Keith
Thank you all, this whole forum has been very informative.
Actually, Steve Cook explains a way to do VA/HUD nonassignables as wholesaled properties.
He offers as an LLC. If the bid is accepted he gets the paperwork together and gets the LLC started. When he finds someone to wholesale it to he simply sells the LLC to the end-buyer. VA/HUD doesn’t care because the name buying the property is the same. It works, because the LLC is still the name of the entity buying the property, even though there is a new signatory on the documents.
Are Steve’s buyers paying cash out of pocket?