HUD homes

Why invest in HUD home ?

The increased demand for a HUD home drives up the price and new investors tend to get anxious and will buy based on emotion instead of logic because they “just want to get their first deal”. If you pay too much for a property, you will lose your shirt on the deal. That’s why it is important to not overpay for the property because you make your money on a property on the day you buy, not the day you sell.

This is why it’s important to have the right real estate investment training so you know how to spot the good deals from the bad and not overpay for a property, as well as using a real estate agent that specializes in HUD properties. Your first deal can bankrupt you if you don’t structure it the right way. People that don’t take the time to invest in their education are soon out of business because they try and figure it out on their own and fail.

Short Sales are a great way to guarantee that you won’t overpay for properties. If you are wondering “what is a short sale “or are wondering what the “definition of a short sale is“here you go. A Short Sale is when the lender accepts less than what is owed on a mortgage on home foreclosures.

  • We don’t give the sellers any money when we get the deed to their house.
  • The only thing you have to pay when you get a deal is the cost of the notary and recording fee when you record your deed.
  • You don’t need good credit to do short sale deals, depending on your financing.

Pre-foreclosures and Short Sales are extremely easy to find right now, as they are frequently categorized as such in MLS listings.
There aren’t enough investors out there to handle all of the deals in the market.

You may here some real estate speakers say to stay away from foreclosures because there is too much competition. Well that was then and this is now. They are teaching old information because they are not currently practicing what they preach. Short sales and foreclosures can take time to be approved by the bank, but if you are willing to wait, you can usually make a good investment.

Banks are in the money business. They’re not in the ral estate business. They don’t want to own any properties. Their only interest is making interest on their money. Foreclosing on homes is a hassle they have to deal with because it’s a cost of doing business for them. The sooner you understand this the sooner you will realize how huge this opportunity is for you right now.

When banks lend out money – they have to keep a multiple of 5 times the amount of money they lend out in reserves. When a loan goes bad, it’s now considered a non-performing asset and that limits the amount of money they can lend out.

It costs a bank thousands of dollars to foreclose on a home. They would rather take a discount on the mortgage and get that bad debt off their books so they can lend out more money. You are the solution for them. Banks need you to help them liquidate their houses so they can get rid of their bad debt. You are doing them a great service.

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