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hey jackie,
I appreciate the call on wednesday about options. I had a question about getting options on HUD and REO properties. Jack was saying that he would get a HUD home under contract and sometimes it can take awhile to close on it. He would then advertise it while he was going through the closing process. Then sell to USDA 100% financing or FHA financing. With this strategy your basically finding a home that needs some carpet and cleanup and thats it and then trying to sell for more in a short period of time to turn them quickly. Am I right on that? You actually have to close on them though correct? Also, when he said about a guy making 5 offers a day. You are basically making offers that have a contigency in the contract subject to financing, which really makes it an option contract. Then if the bank accepts your offer, while your going to closing your trying to sell the contract or home before you actually close on it correct? You can’t assign the contract because the bank won’t let you do that so your basically doing a double close with an end investor. So this is basically wholesaling, correct? So you can either wholesale to an investor or an owner occupant. If you wholesale to an owner occupant you either help them get FHA or USDA loans. The key is then to buy low, then do very small amount of repair and sell for a little bit higher to investor or owner occupant and move it quickly right? When you and Jack say I have made more money with options then any other tool, what does that mean? Get REO under contract then sell for a little higher to investor or owner occupant without any repairs to home? I have about 500k of private money available, and have closed on my first land home package.
thanks for the help. sorry if i am asking basic questions, i want to be real clear on what i am doing.
HI tim
You’ve almost got it right
You cannot sell your contract or flip a HUD or REO home.
You have to close first, then sell to your buyer later
Most lenders will require that you have owned the house for 90 days before your buyer can buy it. So you cannot do a simultaneous close always.
Some lenders will not require the 90 day seasoning. So it just depends on who you bought the house from and which lender your buyer is using.But you can try to find the buyer while you are waiting for it to close
I’ve made a lot of money with options but 99.9% has NOT been REO properties for me.
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