I’ve been putting in offers on REO’s in Dallas for the last two months. I pull the comps, drive the comps and come up with a value. Then use the standard 70% minus repairs. However, none of them have been accepted.
I have two questions; 1) how many offers did you have to submit before you had your first one accept. 2) Are there any ways to assign HUD contracts once I get them accepted?
There is not a set answer on how many offers you have to make. It’s a timing and numbers thing. It could take one offer or 200. Once you learn an area, you can start making offers without even looking at the home. The reason, on REO’s they are going to make you use their contract. So even if they agree to your price, they are going to force you to use their contract. At the point that happens, you then go look at it and decide if you really want it.
There aren’t any ways I know to assign a HUD contract. You would have to do a double close.
There is a awesome way to come very very close to assigning a hud contract, essentially you get the same result as assigning, but the procedure is a bit different, it is perfectly legal, and I have had my own clients leave closing with $15,000, without double closing, or bringing a dime to close. Essentially you get the same result as assigning.
I’m very interested in hearing this as well Eric. I currently work for a Title Company that does ALL of the FANNIE MAE deals in certain Michigan counties. (100s of them!) If I can find some good strategies for buying these and flipping them no money down, with no double closings (THIS title co insists they are “illegal” I know better, but I just work here. My previous company did double closings all the time, so any deals I NEED to double close, I can send over there, unless its a FNMA deal. )