HUD Houses

Kandas and Larry give a primer on HUD houses and how to buy them


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Welcome to rank radio. He's rich and generous. Greg radio host of my best selling an analyst David. Oh hole holes like that guys who according to you do that in through and though review board felt it you. And you aren't the dark hair and an attorney and dangerous to go. And it. Ranked radio hosted by best selling release stated that the other. Kids. That was this for the next hour they'll show you prove that it over to the public release day. The WET studios don't like kids into the brag radio network. Your host rock star. You. Tree and it did. I love it manager also. Heard Bob can do it every Saturday like that. That is we practical. That would probably get calls. Complete calls you think. I don't even stop us and you know. And found that the united everywhere in the wouldn't on national and paint the. All I love it love it while but do I bet you it hurts. I bet you've never had a hose as you do that by other. Usually they say just. Sit there and don't see anything this because. They didn't thing. I am not. Looking good. The flaws of this and they know law. It yet if you could understand the. He did voice with a. That's the latest yeah Brad radio all about being rich in generous. We use real state to do that to use canvases line that she says. We teach people how to invest in real stadium we invest in rules that ourself were active investors as well as passive investors. Business and passive income. So. Candice we've got a really really great show planned we've been working really really hard on it and now he. Have a little excited. About a show. Yeah lying. Topic that we give more request all in any day I'm right about that and a year at. I. This is the I can't even do. So. This is the topic you've all been waiting for you have passed and we deliver. We're gonna talk about haunted houses. And. I did. Yeah pulling me don't know how tightly dent Iranian and we do what I'm. Chad's at the studio was not capable of that so we got the last eight. So we're gonna talk about hi the houses you know what Hud is. The we get a lot of questions but EU EU market you know we marketing year is the hug act as we we've been a leading buyer of Hud homes in north and South Carolina a that's I look at that's the SO. I am not surprised that we get a lot of questions regarding nine. We've had a permit people. I'll listeners you know from the show stop buying a copy of my hard book called Hud homes half fault. And now we're still buying and selling a lot of hot houses. We just sold 1 album. Yesterday morning. It was house to be picked up 436000. Dollars we sold for 49 now and actually 48. Forget 1000 dollar discount because he was on it for his daughter. And. Your. You're good. I. And welcome ghostly pocket and he's so. Yeah anyway and and we also got a great deal that we just sold. How's that equipment talked about it and that's episode or two we got this house for 144 we sold for 160 men and and it's already closed sold done. And and it was listed for 215. Fouls and out. You know only only MLS and we picked up with a Honda. And we picked it up for a 144 sort of for one's sixteen and 25000. Dollars and don't. Don't here's sand that you can't. House's. For less than let's price physically wearing on the yeah. That's exactly right so the first they wanna share about a hundred miles or first thing we'll share about a analysis a lot of people's at what is now what is on products and what is the who. Is it far so what is the hotel's hot house's. I think to add Internet and you know that you wound down. So. Is this area to die so. It's not the Daniel McKinney Gina. The levee and oh can you. Rate slowed the through it what is. Had a house. Somebody went and got an FHA rule OK to buy a house to live Ari the got an FHA all now Hud FHA and hundreds of saying okay. Federal Housing Administration. Housing and urban development same thing I so. Hud or FHA does not make loans. FHA insures loans in other words the bank makes a loan loosely governed by it well alone at Wells Fargo it's an FHA loan. They underwriting FH is guidelines. And then they give them the bar or get Stallone. And a portion of their payment goes to pay an insurance premium every month the Hud FHA. And DN. How does one. And then what happens is. A portion of that insurance proceeds every mom play at a premium like. One of the color field called. For a compact but. A portion of their payment every month this to pay for the insurance so in the event the borrower defaults. Then the lender context FHA or hug and says the more work. Defaulted. And then Hud. Buys that loan from the bank and in Hud files foreclosure and get the property back okay. So. About how becomes hot house all right. So. A lot of people call opium that's what it is you know private mortgage insurance that this is an insurance premiums that goes to work on this world Africa. Anyway so that's what hot house's. The reason why can't houses. It is hot houses this war the simplest ways of seeing it and deals guy. He calls it clean there's no negotiating. It is no. Editor's note that now and it's land there's no warm back and forth all of the little bandits and don't in Rome alone. Yeah shaking your equipment all of. So. So you know you don't have to do marketing and outwards to get deals you can write their own and humble hot houses in multiple states guys. So on so basically all hot houses. Are the only place in the world you can buyer Biddle hot house is hide hold stored. Todd Holmes story arc now all the hot houses are listed by an eight. And all the bids are submitted by an agent that has what's called in AID number that stands for national. Identifier. Number a guy national. Identifier number. Eight. So all hot houses are huddled story arc and all the bids have to be put him on agent within the we have our own agent that we use. The paternal abuse forced weld agent has. What what they called on licensed assist. Right and agents contaminant licenses do clerical work displacing the it is during the normal line. Is clerical work on negotiating the contractor. You have to be licensed to do guys and we actually paid that assistants. Fees as well their payroll we we. Well slow. Anyway. So I'll laugh ha houses. And when we come back from the break a moment tell you all the benefits of the reasons the main reasons that Iowa house in addition to. That you can give them deep deep discount in the meantime. Candace tell them what they need to do. You need to call 877 mango. I'm if you have any. Question so far about the show's end doesn't info at Bragg radio dot com or get a call 877 Larry go. We Indy setup with the digital investor's kit if you are not close enough to the office to come manga physical kid if you are we in schedule a tour. And I grabbed that kid take it take a tour I mean everybody and it's in the office that got the three day event coming up in Charlotte. Here next weekend thinking if you registered for that 2877. Larry go will be Arafat. Jeanette. And Cuba. Marks a critical. Ronnie and me I'm gonna you think I'm the leader quick intro again the Greek cargo that's real quick. My second book. That batter he does better. Listening to supposed to be brag area. Inventing and real estate to be rich in generous we. Have been thought about house's hope for recently went through different things. And what makes a madhouse run out right in downtown. Realtors have been on and things like that. And we're. And we're back so yeah ha is a hot topic right it is people courthouses were doing great at and so. I mean I don't Myanmar and people and it ain't it good deals on house where were able to think it is like in the wrong places you'd definitely not ending violence. In downtown Charlotte. For the deep discounts like while we get him where. That's so true in fact you know I had somebody on the whenever we did this week this is urgently area destroyed. You know and output and beards and just didn't get a deals like gala. What how how long did you bid. The line two days. And and could. Work. Yet there now on the need to sound effects are got to do it to on the Internet and I. 10-Q is are pushing him by sound effects for the radio. We've visited nine. Meaning to have honor guard that's when you called the scoring and and a good. Everywhere we go there squarely. On the world. All right so let's back let's get back to Hud housing didn't tell anybody line blocked a house with eight other than to be an immediate. Yeah because you can be it'll and all hooked houses are hopeful story arc on bids put in by an agent with what's called the number. Or national identifier number. And one of the reasons. House's chips and much detail information about houses. So much detailed information. Every hug house that is listed. Hud homes stored dot com. Is. Has what's called PCR. Practiced PC or that stands for property. Condition report. Check this out now Hamas haven't eat. What's in the. The EP act environment ill. At the environmental condition report. You know they did that the real thing bella and. So what are they include in that VCR and that's how that war planes. Flooded plains yep it's an a flood zone. If there's been any environmental hazards in the area led found in the ground different things like that in the water. No do. I'm pretty now we've heard it a month like there's. No. Room. Meaning and at the buzzer and would he started now I mean look at that and luckily. Had at least she's not you know in the use way. He's still funny at this point I don't know. I knew there. Gonna Wear out there right with it and now the novelty of problems and all that. Okay the houses on that they had that have. Based on our property this year four and apparently the CR. Okay environmental conditions people who don't own. So anyway and the cool thing about the PCR or the cool thing about the PCR. It is. Hide cars and asset manager yet in the asset manager's job is disposal of property disposed to sell they're gonna send somebody out. Two went around the house to change the locks the lock up. And two. You know they put all the stuff across the toilet and policy you know the house has been winterize and they changed the locks in the law box. And they also they they field service reps Agilent do you guys. Now they also have them go out and doing condition report that PC power now and think about this piece he arias. All of the major items of holes. Now paint and carpet not counter tops or anything like that but the major items like each BAC. And appliances. And rooms roof right and structural. And electrical. And wiring. And water heater. And that says HP's. So all of the major items are going to be listed in the test almost. They test electrical balance the test aligned state test the the plumbing. Will hold pressure. They test to make sure there condition and he tumbled. And it's appliances are there and check the root for as well so those were all the major items so the great thing about it is what's left. We'll slip it's all cosmetic. Lipstick right. As they call it's all just cosmetic paint carpet in your own cabinets and stuff like that. So. The cool thing about that is that the PCR. You'd have so much deet no information right up in from the for the deal right. So it's very very important the other thing I like about houses is the corporate authority in. It is yeah there was like animals in the airs on them. It's already removed removed all sort of been clean now. So house has been cleaned out but it house males. I've never been to post. And I can't they aren't in there. I've seen some. That were. Even from the pitchers you look at. From the pictures on line. You look at it in you can tell if they smoked in the house. Because they have little squares and rectangles all over the walls. Where you know like staying the walls a yellow. Color. So on you but. That being cleaned out if it's smelly the Harper's been removed in the peace she argued she tremendous amount Tuesday. Another thing that I've seen them do is if there's a day in dismissing like a ban a stereo or the little. What are those little things that hold the rail out that there's things missing where it's not safe. They they make the property state as well or if there is a back door that goes off and there were no steps in one of the pictures previously Oman. Then they put like a set just. You know moderate stats say so right yet they they can they compile a public safety regulations when it comes in house team. Also if there's a pool and about and indeed they won't put a they've frame with wire and stuff over so you know if you get in the UK get it right there and you are there so you can get in there right. So while so yeah they do what they do all that but now a what you and another thing I like about hunt is Hud is what's called the daily auction. You can bid on a hot house every single day every single day which we did. That's right we do and in fact win ha ha house's first released and first on the market okay. When it's brand new and it hit the market for the first time typically not every time but typically. The first fifteen to thirty days. Only owner occupied buyers to India and other words if your mind is an investor. You have to wait. During that period period that's called an exclusive. Abuse when the only owner occupied buyers could be him because Hud. They're trying to promote homeownership right so that league of first shot at this house to supplies going to look it is and improve our community pride of ownership I'm alive I always give people asked me won't mortified just. By it to live it now move out. You know Rogers and decided I wanted to flip it. You know well that is for all. If you go into it Nolan then apply in front right but I have. I have had students that have actionable the house okay like I have a student at ball went to live it they did buy a house to live a double and Nolan in rather slow now but they've all the hot house to live in it. Directly from Hud and they grabbed their remodel and and hug sent a field service rep out. Look at it verify occupancy and see if they were planned home and into it or they at least they didn't live and yet cause it was still rehabbing it. But they did send somebody up to verify. But after that. Fifteen of thirty day period and that's what's called an ex ended listing today. And they hand. Anybody can be handled it and when we come back from the break I'm on the tell you more about while love had hot houses and how to beat this council. Yes get a common 877. Larry go would be set up with the investor's kit digital if he can't come by the office physical if you can't take a tour. We've got the three day event coming up next weekend in Charlotte looking you registered for that. Check out all of the rest of all of previous shows on brag radio dot com send an email Anthony info at Bragg radio. 877 Mary snow will be right back. Okay hey I'm the cause Aruba the likes they like every town hall of so we are back to look at film Lebanon rag Grady. Rectory and we're back on the Van Halen to eight. What is this thing. This is the pillars and only it's flops we look at it am I in the night night don't plan that's crazy. Is ridiculous it is and you better and keep on. And and Atlanta and ads aren't playing music body was violence on the island the last segment an hour and a Mac. Here we are. OK so talking about high the houses everybody wants to know how to get a hug house of the deep discount we talked about Hud is a daily auction. All Hud bids are submitted high at home store dot com that you via PCR property condition. Reports the first fifteen to thirty days are typically open to owner occupied buyers only bin investors. Or nonprofits or government agencies can be in on them after the fact okay so next little to do is. 00 we also talked about. The PCR gives you all the major items right. And we just talked about at the N emerald city and that they whereas it that they minute that it's safe. And that it's I think he said Dalia. Right so the next thing we'll talk about is what happens when you via okay. As I mentioned all bids are put in by an agent with what's called in ID number national identifier number right. And we have hired we pay assistants and assistants. To put in the bids for us through our age group and that's what we do so that was agent doesn't have to do you work. The calls were bidding on every house in north and South Carolina and Georgia breeze. I needy innate. I've got a lot of other Klein and it glad we're finally admitted it and that's what we instead of you. Well well as ever. As the claw and we need you because sometimes when you're these are needed to go in a little bit wiggle room over a standard. And percentages that go in everyday. And patents on money that week in icons and we need to adjust the amount of the union where. Agents have a lot of things they'll announce an assistant and it. We pay for Albert to specifically it's it's. At. That rate that note that the cost anything to submit it now wouldn't cost anything at all. Which elected in the one. You know that has jumping in the game. That's all from these are agony aunt. You know an imminent and rightly it's okay. Through June at. The clubhouse the world living with the that's the biggest problem most new B investors. You know and there are. I like. I'm really like that house. Okay here's tip number one. And not give emotionally attached to. Have in all eyes on the numbers. Everything you're actually be an oil. Every house you have. Should be my brother is everything I don't need it now. So okay so we'll have a. When you put it a bit when agent puts in a bit remember Hud is a daily auction okay. When your agent put in the bid or there assistant or you through your agent or whatever when nit bid goes in okay. One of three things are gonna happen. Nothing happens and your bid simply expires. Nobody has any further obligation so if you don't hear from hugs asset manager of the following day. That means they did not take to be okay. Now the second thing that may happen. Is maybe the house's list of for sixty. You offered let's say you could pay a let's say you can pay forty that you offered thirty okay. So its list of for sixty who offered thirty. And you could go up to forty Rory. But. Date could count her back for the second half they can Alter that. All right so maybe their passcode sixty in my account about it. Forty or fifteen year maybe in 55 option quarterback with a thousand dollars of list price. But I've also seen count about close to what your business as well. So it's like poker you can't win it if you email it. And and you never know like what their numbers on the back in her telling them they have to give in this house. That's true. That's true that's true so. The first daily gonna happen is nothing your bid expires second thing is you get a counter. Now if you give account or let's say he offered authority in place let's say they countered it. At fifty all right. So you can do one of four things when you account number one you can do nothing. And the count or simply expires that night at midnight. Guy. The second thing you can do is you could tell her back all right. This that you bid thirty day countered at fifty you can come back at 48. The third thing you can do is just forget the counter and submit a whole new bid. For saved forty okay. And the last and final thing that you can do when the encounter. Is you can accept. All right that's the place you. Agree except I read some accidents. OK so. You can do nothing inspires you get a Kilmer. And you can do one of four things you do nothing camera expires. Account back he submitted new bid or you except okay. And then the third thing is today that can happen when you submit a bit like I said. It is state except you're be right bats with two of them for a team that's the payday right. Am so now once you get to bid accepted here's what happens all right. Now you have two days to get all your paperwork. And your deposited. Now. If the bid amount that they accepted as 50000 or less. The bid of the deposit excuse me you know earnest money deposit is going to be 500 dollars. Enough. It is. Over 50000. It's going to be a thousand dollars. Right it's that way all across to United States. Happens in real technology that that you are now. When your real terror agent at a similar student has happened to a and all you have to do is tell them well according to Hud's guidelines Albany required. It is you know 500 dollars for below 50000. Or thousand dollars over 50000 that's all they require. So when an agent tries to either put up more earnest money deposit they're just trying to get you more. And the glue that they want you to put up more money and be more committed. Then just a 500000. Dollar deposit right. So we're. You've got two business days get prepared for it now until this until just about probably I don't know. Four to six months ago. You have to sit and everything in the physical copy and you had decided in blue being so as the original and originals and all that. But now what you can do is now what you can do is. You can do it digit lead they would digitally scanned. The documents to you through a service like doc you signed. And then all you have to do is digital surround them and then send in the money. Now you can't send an Purcell church in camps in the car. A company check or money to us that them myself in it the money still has to be in two days and it has to be an official check. Okay dependent on the asset manager and what part of the country area and you can wire the money and for you it's Indians. Election officials check a pay check or money order select that. Does that make sense. And check or certified funds is certified partners out of there. There are like a money order that's what we do we we go to the bank collector refute race. And we get bids accepted. And then we just get the depository. And yet. Go. So. When we come back. A lot of talk to you about how some strategies to look for. To be able to pick up your deals that deep deep discounts no matter where you're buying in or where you live right here. Right in the mean time Candace will tell you how you can get a free copy of Holland Holmes half fall but more. The hunt comes half off is included in the investor's kit. You can't how many opera schedule a tour and how many apples pick up the physical physical version or we can see indeed the digital version out here email. Just give Larry Cohen a college bearing on opposite call 877. Eight cents a than Larry guess and I can give us right away for you also got the three day event coming up next weekend very very few seats remaining if you as a wanna come to that back and take Canada for UT 877 Larry ago. Oh. Come back here listen to brag radio and that's the real thing be rich in generous. This in this. They're in Larry he's there for a few of them here. Anyway women black enough lead this time. If you're able to get a call 877 Mary go I guess several people doing and have been aliens here chronicled her door on the show I would give acting. And then. That's right that's and the scale but she's really good but she can't be on the radio and home phone and unless I'm talking. Right. Mentality that the only thanks to Clinton had the residents of those sad and you do that you do that than well. Mean we do we have a million people that worked with Allison and they work. Mean and whenever. Whenever there's some in the days so there's someone on the house or. They've got a violent answers some money you know they found out about an announcement that the its own dates and questions all. Ons for the day evidently. That's good that's good OK so when we went to the break. Only after the break we said we were gonna come back and talk about I was gonna show you how you can buy hot houses that deep deep discounts I. So. Basically what I wanna talk about is looking for anomalies. OK I. Look for anomalies. In pricing and in other things as well for example okay. Couple things I've noticed. The longer hot house's own the market. The deeper discount the will and today. So if you find the hot house and you look at them and sort them by the number of days on the market the ones that have been on the market. For around 65. To 75 days those are the ones that they're willing to take. You know 605040. Even 30% of list price on and a guy that's gonna ultimately depend on the conditions where it is that sort of thing. But. Those are the ones that we've seen that they will take a discount. We've also seen properties that are missed price look for miss priced properties. We bought our house one time it was listed for 44 and we paid 4564. Repaid a 103%. Of list price. And we turn right we didn't touch that we didn't do anything to it we sold it for eating plan in an appraised for more than that. So we paid 464. 4564. And was ordered for eighty now and then we had at least for nine man. But we've developed taken an offer for a man and we ended up having to put water heater and that because our buyer's lender. Did home inspection and they came up that it needed water heaters which four dollars left. So we netted almost 40000. Dollars after it was done. And we paid over retails so look for missed priced properties that's very very very important. Also you wanna look for properties. That have they've made a mistake in the number of bedrooms. For example. I've seen Hud have houses listed and they said they were a two bedroom. And when you look on other web sites or pull some data from the public records and ends up being a three bedroom house instead of two. And a lot of people and even search in. For a two bedroom so I mean I even come up in their search results right now so they'll have them listed as a two bedroom but it Lyndon B in three bedroom. And I've seen some there three bedroom they say it is a bit a four bedroom. In addition to that. The number of paths we've seen a lot of on this say they have one bath but the relief in the island to where they say they have to live in apartment three okay. Usually doesn't go down they usually don't say that there's two and then there's only once wrote healing and they usually miss one instead of discount and Alan. You know and it's funny sometimes even like you can look at the pitchers it'll say it's 31. But they have. To pit the pictures of two different bathrooms are I like you can tell those two different bathrooms right. And throw him in office anymore and so anyway to have it listed in their world. The other thing that I noticed. Is the square footage. Not seen Sloan. Seeing some problems. That or maybe had 900 square feet but in reality they forgot to put the one in Portland had nineteen underscored. And you can kind of tell a look at and it. But a lot of people will search for properties. And they'll put in their search criteria in the in the sale worn at least a thousand square foot you know three bedroom two bath. With that was missed priced or if it was. The wrong moment netlabel mislabeled. Anomalies. If it was in a wrong number of bedrooms on number bounced or you know through in 19100 square feet instead of 900. It wouldn't even show up in the search results right. So that's very important that while we as an organization. We make an offer everything everyday in the whole state. That's right on how we do. Which brings me to it which brings me to the next thing about how to get properties at deep discounts. I will tell you in the larger cities and MSAs that's metropolitan statistical area like where we are right now beautiful. Uptown Charlotte. There. So in in in Charlotte. MS LA. Metropolitan statistical area it would include Charlotte. And probably gassed on the and you work. A rock keel which is in York county South Carolina. You know as well as Monroe where you live and in other. And lacks. Close to its close very close I'm clean. So convenient and how Munro listeners. We have not an analyst at. Nothing wrong with the people we used to have the road and honestly and this method and with the people I'm not claim in the city. In black today and minerals in a lot of blacks and one stoplight really. That's Ayman Al dump happens in the so. That the it's sort island and authority. There's something going on there I'll find out what it is Alina later this. That would. So anyway. Will old. MS I. So. Needless to say. There's a lot more people in the large cities where there's MSAs the city in the surrounding areas so it's much much more difficult. To get a property and it deep deep discount. If you're in a major city for example we're right here in the Charlotte him SA where our offices in Lake Wylie. And and we're right here in the Charlotte him SA but it's been over three years since we have Paul house in short right right. So. The other key to getting properties at deep discount. And in addition to looking for the anomalies. Is. Just been known everything and you're gonna get stuff from the small town because there are much more likely to Biddle properties. That. Our are in small details now I'm not saying to go out to all the rural areas or anything like that. But what I am saying is you know. You don't have to be right in the city. You can go outside of the city in the smaller towns the bedroom communities outside of the major MSAs. And you're going to be able to get some deals on houses because think about there's less competition there's less people bidding on house. If you're in Charlotte and he got three or 45 people bidding on how to house every day they're not gonna drop that price a lot. OK until it's normal. In the small town where you might have one person bidding on a hot house a week or every couple weeks of something. And in most people don't really know that Hud is a daily auction they might bid on it one time and then they give up. Oh they didn't take it a low guy in the removal. Wee bit on everything every day so number one we're looking for the anomalies were bid known everything everywhere. You know. And we don't give up we don't give up. So. That's a lot about pot houses but there's so much more to learn about pod houses. And a few more free copy of the book can also play out yet. Freak think Oakland. Street copy of the vote getting ability. In the investors it you can give eighth seventh and then lingo Collins packing it did it took it out to you worry in schedule not the story and and that again physical. We are a lot about putt at three day events so we've got the Charlotte third and a prominent that they into the month backing you registered for that as well. In. Let's see we can talk about pan. Kits oh senate you keen given in talent in brag radio dot com and it's out theme from today shows you happen. To be diving in not able to take them very. Without electric. We can't. Thank you can't listen that is gonna wrap up today's break radio leaving the world to be rich and generous. Weren't formation about what Larry and Candice talked about on today's show or to get a free investors can call 877 Larry golf. That's 8775277946. You can also go to ranked radio dot com. A tribute to it and every Saturday for ranked radio leading the world to be rich and generous. Larry in Kansas we'll show you how to invest in real estate. And the many ways realistic greasy ideal investment. Your news elevenths and 993. W VT.