Hello,
I am currently interested in a HUD home. Are the homes assignable?
Technically, they are not. But you can always buy it from the bank and then sell it again to your investor buyer at a higher price. If memory serves, I believe there is a clause in the contract stating that it is non-assignable.
Double-close. I know some people on here deal with assignments still. But, for me, and my students, they are a thing of the past. Double-closing is just as easy (no need to attend the closing) and your buyer can’t see how much you’re making.
And they are a must with REO’s and HUD’s.
The advantage of HUD’s over regular bank REO’s is that they don’t have the “no transfer of title for __ days” clause, that many REO contracts have these days. That’s been my experience, anyway.
The REO’s we get for our clients direct from the banks do not have no transfer of title clause.
Sean Terry from the Flip2Freedom Academy has a free podcast and talks all about how to wholesale HUD homes on podcast episode #66. You should definitely check this out.
As the above poster says. HUD can not be assigned but you can use transactional funds and do a double closing on them.
Listed REOs (fannie and Feddie) do have a days of ownership clause in the contract. Closed one monday, but if your buyer has cash??? Use your imagination guys. Thats why this is creative RE investing. There are always grey areas.
Most brokers don’t like paying transactional funding fees they want to keep all the funds for themselves.
Find a different broker! There are thousands of them out there that will meet your needs. You just have to go out and find them.
The Brokers have nothing to do with the transactional fee? That is paid by you (the wholesaler) when you do the second closing.
When you close on it at the purchase closing the Broker gets his commission and then he’s out of the picture. The second closing is between you and “YOUR” buyer and that is when the transaction fee is taken out of your funds at closing.
So a double closing on a hud home is possible with transactional funding… obviously you must have end buyer waiting in line. HUD people are ok with it your saying
YES you just can’t assign a HUD. You close on it and then re-close as seller to your buyer with transactional funding if you need money.
I don’t care how many books you read the only way to double closing on a hud home is first buy it with your cash money or used transactional funding. Beware of the snake oil salesman trying to sell those books.