I’ve come acrosse some great investment properties in my area except they are all HUD properties being brokered by local realty agents. One has a asking prioce of only 36% of ARV.
The buyer on the contract (HUD provided contract) must close on the property, BUT HUD doesnt require you to hold the property for any amount of time like Fannie and Freddie. This how I do it. Place property under contract, find a buyer that has cash and have him put his money into a escrow account. At time of closing use his money to fund the closing and pocket the differnce in the contract between you and him. At closing have title company draw up a deed from you to him to filed 30 seconds after they file the one from HUD to you.
Make sure when you are using the ends buyers funds to closed a deal you disclosed that to the end buyer that you are using their funds.
Wholesaling HUD homes is definitely possible. Has anyone heard of Sean Terry from the Flip2Freedom Academy? He has a free podcast and talks all about how to wholesale HUD homes on podcast episode #66. You should definitely check this out.