I have been flipping hud homes the past 2 months, and have done very well with it. Recently i had a realtor raise a big stink about me marketing these homes while i already have it under contract. She has made me take all my advertising down from craigslist, postlets, even my own website. She had Hud officer call my realtor and tell me im not allowed to advertise Hud homes until i close on the property , is this correct? i thought if i have equitable interest im allowed to advertise the home? please help somebody
If you have a purchase contract pending, you have equitable interest in the property, and you can advertise it for sale, rent, or lease/option, or even seller financing.
If you don’t have a purchase contract, you cannot advertise HUD houses, unless you are a licensed agent/broker.
You should not remove your advertising, unless HUD can prove, in writing, that it’s illegal for you to advertise HUD properties you have a contract to buy.
If the HUD toad threatens to cancel your purchase agreement in retaliation, you’ll now be in a fantastic position to (threaten to) sue for specific performance. This just means that a judge will force HUD to sell the property they agreed to sell you, to you (plus legal fees and costs).
Why? Because sellers have to sell, but buyers don’t have to buy.
Meantime, don’t let this ignorant housewife, cum real estate agent, fake you out. You have ‘standing’ in this case, and are legally allowed to market for resale, or rent, any house you have a purchase agreement on.
awesome, and the Hud official threatened to take away my real estate agent Naid license and to keep all my hud deposits if i keep advertising the home for sale. And yes i have a purchase contract from HUD on all my properties i advertise. Ive already closed 10 with no problems till this dumb [b-word] came along. I was surprised to see the email from HUD department saying i cant advertise the homes i have under contract but then again , she probably just sits in the office and does her lazy government work having no idea about creative real estate
Just a thought…
A purchase agreement is just like a short term option to buy. You have a certain number of days in which to close on the transaction.
In the meantime, the seller cannot sell the property to anyone else, but you.
This exclusive right to buy, gives you other rights, too, which include the right to solicit interest in the property to another person.
However, that right doesn’t include assigning the purchase agreement itself to a third party, since HUD (and most REO sellers) disallow ‘that’ in their purchase agreements.
Let us know what the dumb “b-word” at HUD can prove in writing is true.
Hey edmhomes, give us a rundown on the process of flipping these hUD homes.
Get a naid approved agent to put bids in for you , track the bids with some software, when hud lowers there price to a certain percent do some research on the property, if it makes sense put your bid in to lock it up. send in your deposit either $500 or $1000 depending on price of home. you have 30-45 days to find a cash buyer. you make the difference whatever you mark the price up from your winning bid. I recommend having a solid buyers list before starting this business
ok so this realtor bi*** filed a complaint with department of business and professional regulation. I have a complaint as unlicensed activity. The investigator states , and i quote " Having a contract on a property does not allow me to market and sell a property i do not own" and then he threatens saying its a 3rd degree felony. They said they will be in contact with me to get my side of the story. Should i get an attorney?
Do you have an accepted purchase agreement?
yes javipa, i have an accepted contract from HUD to purchase and my name as the buyer. There telling me i cant advertise these properties because i havent closed on them yet. Now i have state of florida department of business and professional regulation investigating me
Have the fat head send/give link you to the provisions that back up his statement, that you cannot do what you’re doing.
Meantime, advertise the house without the address, or get your buyers in place first, and then start making offers, and present the deals to your buyer pool." Either way, the PA’s are not going to be assignable, and so a double closing will be necessary, regardless of how you find your buyers.
Don’t let these people intimidate you. Make a claim against the agent with the real estate commission. Chances are she’s already got a couple. So just add to them.
What’s good for the goose, is good for the gander. Those complaints become public information, including resolutions. So file away.
ok thanks javipa, and yes thats how i do it with a double close.
They can investigate you until they’re blue in the face. However, you do NOT have to answer any questions whatsoever. They can’t go on a fishing expedition. All they can do is find out what you’ve done publicly. And it’s NOT a ‘3rd Degree Felony’. If it was, there’d be a ton of investors in prison already.
BTW, you should NOT answer any questions from them, regardless of how innocent, or basic. If you do, you open yourself up to a boatload of liabilities. So, just close that lid on them, and keep your mouth shut.
I’ve been through a 9-month federal investigation over my operation before. I know what I’m talking about. I didn’t get an attorney. However, I did give them information that they could also find out without my help, but no more. They asked a LOT of questions. They only ‘got’ publicly available information from me. They gave up. However, they didn’t give up without asking me to settle the investigation by paying a fine. I told them they owed me money for wasting nine months of my time for no reason, other than to put a notch in their belt, and literally laughed in their ear over the offer. A week later, I got a certified letter in the mail, explaining that they had dropped the investigation. Of course, I had done nothing wrong, but that makes no difference to the federal government. You’re guilty, until you break, or their department decides you’re not worth pursuing any further. That was my case.
Hey Javipa, u have kahonas of steel. Were you doing sandwich leases and making your own 2nd loans?
There is a growing number of people getting fed up with too much government control. I feel like im living in a police state, the taxes, the rules. Most of us are filled with apathy, but then, who cares?
Yes, I do have ‘kahonas of steel.’ :cool
The federal investigation happened after I kicked a black woman and her boyfriend out of my building for disturbing the peace. The woman worked for the county. She had friends at HUD, and sold them on the idea that I kicked them out because they were black.
Part of her argument was that several other black tenants had moved, and she surmised that it was because I was just a bigoted slumlord.
Meantime, the HUD investigators were having multiple orgasms at the prospect of convicting a white guy of discrimination.
Well, unfortunately for them, I keep my tees crossed and my ‘eyes’ dotted, and I don’t actually discriminate for skin color.
After all was said and done, they could find nothing to back up their contention, despite a nine-month long fishing expedition, which included sending a boatload of black “ringers” to apply for apartments …not to mention one, hilarious, stick-out, white guy, wearing Birkenstock sandals (literally), and wire-rim glasses, toting a six-year boy, who asked a bunch of odd questions we never got from “real” applicants.
Of course, we treated the white guy, and his “son,” the same way we did everybody, including the clutch of black women who repeatedly shopped our apartments.
So the sting operations were a complete bust.
After the investigation our applicants returned mostly to Latinos, Russians, and Laotians. That’s a wild combination, let me say.
Meantime, we felt like the United Nations of apartment operations.
BTW, HUD wanted a list of all properties I owned, my partner’s name/addresses, copies of my management contracts, rental policies, etc., etc., and I refused. What they wanted to do was “fish and shop” my other properties, and those of any of my associates, to uncover evidence of any discrimination elsewhere (to prosecute).
I mean they were gonna make the waves roll across my pond as far as possible. Forget that.
I think I’ve talked about this before on this forum, but there was another hilarious part of this story that’s worth adding…
Every time this black tenant would see me, she would say something absolutely disrespectful to me. Her favorite was to call me a “fat, white fu*ker.”
I think that’s how she made out her rent checks, too, but I’m not sure.
Well …I of course, quoted her to the judge in open court during the unlawful detainer action, which was delicious. And then, of course, I quoted her again to the HUD investigators in a written statement.
It wasn’t hard to paint this woman as the angry, peace-disturbing, foul-mouthed wench, that she was.
Javipa, what if the contract was for a shortsale with seller’s acceptance, but because it was a shortsale it was pending acceptance by the bank. I had a great contract but I let it expire after waiting for the bank’s acceptance for 7 months. Could I had adverised it and re-assign sell it?
Yes, you could have done that. However, that doesn’t speed up the bank’s decision process. This sounds like a scenario from 2009ish? Would that be right?
Banks were VERY slow to accept short sales during that time. One reason is that paper-equity positions, would become documented losses, and complicate the bank’s borrowing power, among other things.
It’s more complicated than that, but they just had several reasons for not actually foreclosing, in the in the first place, much less accepting a short payoffs.
There’s been borrowers living in defaulted houses for more than three years after the NOD’s were posted. In that time, banks engaged in all sorts of CYA “solutions” to keep from having to take houses back, or report actual losses.
This contributed to the phantom inventory we’ve all heard about.
Best defense is a good offense. First write the HUD legal department and ask for any specific rule or regulation that denies you the right to sell your legal interest in a HUD property obtained as an investor. The basis of the bug up her ass seems to be HUD homes, maybe she lost a deal due to you getting it or something. Never the less, no such rule or regulation, her boat has just been sunk. So be sure it is the legal department that responds in writing to you.
Second get her license number and other details and file a complaint with the state real estate department that she is illegally interfering with your legal right as a individual to act as a principle in a real estate situation and interfering with your family income. That You are not acting in any capacity of agency, only as an individual investor acting in a legal manner as a principle selling your contracted rights in a property to another. An activity legally done by thousands every week in this state. I would like you to inform her that you are not violating any valid laws and the spreading of false information is not an activity allowed under a state real estate license.
Finally, send her a copy of both letters saying I am fed up with you and if you persist I am prepared to file a tort lawsuit in the amount of $20 million dollars under the tort statutes for interference and other areas of law, and if you have done this to any other individuals I will ask them to join me and increase the amount. Maybe just for the heck of it send copies to the real estate Association with a letter that this activity of your member appears to be a violation of the Realtor’s code of ethics.