So I posted a while back that I got 2 HUD properties under contract. Both are in good areas but one in particular I know will go quickly. I sent an email to my buyers list and had an interested party immediately (the condo buyer). I also put an ad on craigslist and found another very interested buyer. Both want to go through the property immediately and my realtor was on board to show it... until today. Apparenlty her broker had a fit when she was talking to him about how we would work the commission on this property. He didn't have the fit because of the commission but because she would be showing this HUD property prior to me closing. If you have been reading this blog for any length of time you may remember when someone turned me in to HUD for showing our Jefferson Str property prior to closing. HUD threatened to cancel my contract and keep my EMD, etc... Now her broker is paranoid that everyone is going to turn us in to HUD. Urrrghh. I read in one of Nate's posts that he keeps a door open so he can come and go as he pleases. I might try this next time around. I'm not sure I'm real comfortable with leaving a property unlocked but I'm not sure how else to handle this problem?!?! I'm pretty confident that I would have a written contract on this property had we shown it and been able to do a simo or double close on the 29th of January.
I'm bummed... This doesn't mean we won't get a contract on or about the 29th of January and close a bit later but it sooo much more a pain in the ass!! These HUDs are great little properties to buy (in fact we put in 2 more offers today) but they are hard to double close. Anyhoo, I'm putting in 3 more offers early next week. Hopefully I'll get another accepted offer here soon.
I spent some time last night reflecting on my personal/business goals for 2009. I thought I was done until I read Shae's post today. I am going to go through those questions to see if anything changes for me.
Talk to you all next week!
4 comments:
Eileen, great to hear you're working on those goals. Quick question for you: when you actually close on your properties and sell to an investor a little later do you raise your price so that your closing costs from the first transaction are covered? Also, is it a small local bank that you're working with to funds these deals that you're not doing simo closes on? If I asked you this question before, I apologize :-(
Hi Eileen,
Can't you just say you need access to show inspectors/contractors?
Steph
P.S.
Happy New Year!
Shae,
I assume I will be double closing all my deals so I account for paying all closing costs. If we simo close I pocket a little extra money. If closing would go in the buyers favor somehow I would just eat the money. I wouldn't up the price.
Yes, I work with a small local bank. I've also closed to o/o deals where the buyers used small local banks and they were okay with the fact I was flipping them in a short amount of time. No problems there...
Steph,
Over the summer I advertised/showing a HUD home prior to closing, someone got pissed and reported me/my agent to HUD. Since this situation my realtor/her broker have been paranoid that everyone will turn us in to HUD. I guess I can understand where the broker is coming from since he could get privaledges revoked?! Anyway, since HUD uses a master key system vs. a lockbox I'm not sure how I would get a key without my realtor and me not being a realtor? You know what I'm saying?
P.S. Happy New Year to both of you too!
Oh, I gotcha.
I've never bid on any HUD homes- all of the ones I have done have coded lockboxes, and the realtors just give the codes to me. :)
Maybe Nate is on to something with leaving a door opened? I suppose that would end your relationship with your realtor, though, if you got caught.. Probably not worth it.
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