Tuesday, November 17, 2009

HUD closing yesterday

We closed on the $43k HUD home yesterday. I posted pictures a couple weeks ago. It is in good shape, not much needed. My husband went out there today to replace the locks, meet the plumber and have the water/electric turned on. Apparently the plumber told him we need to replace all the water fixtures in the house, including toilets. This was an expense I was not expecting (is there any other?). My husband is of the mind to sell the properties without having the water turned on and let the next person get things fixed. I agree with this mentality if we were selling to investors. However, since some of our homes are sold to o/o's my thought process is to make the property 'move in ready' to start the cosmetic updates. I have found many people to be uncomfortable buying homes with no utilities on no matter what the price. BUT, since we live in Wisconsin and are going into the winter season freezing pipes cause concern too. At any rate, I am going to get them fixed and hopefully entice buyers even more!

Let's see... I put in 4 HUD offers yesterday. I'm expecting them all to be countered, not accepted. I want to know where they stand on price. This is one reason why I love submitting on HUD properties. I'm also going to get another 4 offers out on regular REO properties. We are VERY far apart on numbers so I'm not expecting any positive results but I need to just get some offers out there.

There is one interesting property that I would like to look at soon (those words seem to be the kiss of death for me these days, it has probably already sold!). This property is a bit different though in the sense that it is in a higher price range than I usually go after. It's ARV is a conservative $189k and it is priced at $124k. Of course I have not idea of repairs at this point but want to take a look.

My son threw my phone in the toilet this weekend - good times! So I'm phoneless, it's weird but I have to get another one sometime this week.

2 comments:

Shae said...

Hey Eileen, congrats another successful closing :-)

I've been struggling with my REO offers because the closest my offer has been to asking price is $10K lower...and that's rare! Usually I'm so far away from asking (even on homes that have been on the market for 90+ days) that it just seems like an exercise in futility. But every week the guys in my wholesaler mastermind group are snagging REO deals. It's nuts! So I just keep promoting their deals while primarily focusing on the private sellers.

These HUDS seem to be working really well for you -- have you noticed any reductions in HUD listings at all or does it seem to be pretty steady?

Keep up the awesome work lady!

Eileen-WI said...

Thanks Shae!

Yeah, all of our flips (except 2) were HUD homes. We just seem to get them at the prices we need and there isn't much competition. However, recent activity has proven different. Hopefully that will change!

The REO's around here are usually priced really high and when they come down o/o's buy them. IF they are price reasonably, there is a reason. Ummm, like there is no foundation! ha, ha. For ME, they are very difficult to acquire but I keep trying anyway. I just keep thinking there may be one that the bank just wants gone... like yesterday. You never know until you try, right?

Thanks again!
Eileen