As approved HUD Brokers we not only have the ability to represent clients in the purchase of a HUD home, but are also eligible to purchase them ourselves. This particular property had been appraised by HUD for $87,000 in its current “as is” condition. Upon viewing the property and evaluating the upside potential, we determined that we should enter into the bidding process to buy this property.
The bidding process is an online bidding process which is initiated by an approved HUD broker. This bidding process starts with verification of funds if paying cash, or verification of loan pre-approval. Once verified by the broker, and a hard copy of the buyers offer is signed, the broker may then enter the offer amount into the on line format. One thing to keep in mind is that during the first 30 days, only owner occupants or non-profits may submit offers. After that all buyers, including investors may submit offers. During this time offers are reviewed by HUD on a daily basis, and notification of a winning offer is sent out the following day.
Our original offer, which was rejected, resulted in a net of $62,700 to HUD. Our second offer netted HUD $63,650, and was rejected as was our third offer which netted HUD $67,045. It was our fourth offer which netted HUD $67,450 that was accepted.
This particular home, located in The Hunters Forest subdivision, off of Jones Bridge Rd, should sell for the mid to upper $140’s. With the sun room we are considering for the rear, we may be able to move the price to the low $150’s. This type of value is readily available throughout the local markets, and if properly evaluated and managed can result in a very profitable transaction.
Our plans are to close just before Christmas, and to begin the renovation shortly after the beginning of the year, so that we will have it ready to return to market by March. Stay tuned for the complete before and afters.
Van Purser is a licensed real estate broker in Georgia. Since1981 he has successfully purchased and renovated over 400 homes. His expertise is in the area of foreclosures, rehabs and fixer uppers. Additionally, he has represented hundreds of clients over the years as a broker with Metro Brokers, RE/Max and now with his own firm. He and his wife, Jeanne, who is also a broker, have been married since 1977. Van can be reached at 770-623-3313 or by email VanPurser@VanPurser.com