fliprent

HUD foreclosed properties are available in most areas of the country. The Department of Housing and Urban Development (HUD) is a parent organization to the Federal Housing Administration or (FHA). The sales process is quite a bit different from county/city foreclosures or even purchasing a house from a home owner. This organization provides federal mortgage insurance to lenders, mostly for low to middle income borrowers. Lenders that foreclose on a home previously insured by the FHA, can file a claim for the remaining balance. Once the FHA refunds the lender the ownership will be transferred to HUD. HUD in turn auctions the home on the open market. Contrary to what many believe, investors are given the opportunity to bid on properties that are not purchased by potential owner occupants. Typically after the initial ten day period, investor’s bids are accepted. This is a good thing for house flippers, given that many home owners are not looking for a property that will require major repairs. You can even find multi-unit properties for sale on occasion. Other programs exist for non-profits, teachers, police officers, hurricane Katrina evacuees, firefighters, emergency medical technicians and other public service entities.

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The other day someone asked me what I thought was the biggest contributor to today’s mortgage mess.  I thought about low interest rates, inflated home prices, Mortgage Company lenience, and subprime lending.  It’s difficult to say that there was one root more responsible than another since they all played together in one big mortgage mess.  However, if I must choose, subprime lenders get the most blame in my opinion.  The main reason they get the blame is because of the ugly gremlins that spawned out of subprime lenders. These offenders are commonly referred to as predatory lenders.  The situation has gotten so bad that there is legislation being discussed by congress. The intention is to curtail the many practices commonly described as predatory lending. Read the rest of this entry »

Real estate investing books often imply there is no need to worry about funding your deals.  Just get out there. Start making your calls, start setting appointments, start writing contracts, and the money part will be easy.  I agree that finding the good deals are the hardest part but finding financing for your deal can be equally as challenging.  For beginners, there are so many options that it becomes overwhelming.  There are money partners, private investors, hard money loans, bank loans, home equity lines of credit, credit lines, credit cards, downsizing, subject to, owner carry backs and wholesale flipping all to choose from.  Every author you read has a preferred method for financing deals.  Luckily, when it comes to flipping houses, things are a little simpler.  Read the rest of this entry »