Jason,

If you need help with the HUD process, call me.  I have been subcontracting with the BLB for a year listing HUDs and I have my own territories starting May.  325.725.9854

It isn't hard but they have their own way of doing things and they expect that you will play the game their way....   ;-)

Velda

Jason, BE Careful when you are working with investors...NEver say they will make money, because it is an investment, some go up, some do not. I do not do many HUD homes, but the few that I have, were a pain in the you know what. Most of the time they are too much work and your time would maybe be better spent on other ways of generating cash flow.

I have used rehablist.com before. They are fairly good and they are free. I have listed/sold some of my rehabs on there. They also have lists of other sites on there too. Good luck. Investors can be tricky to handle sometimes. I work with about 10-12 on a regular basis.

Jason,

Huds are great, pay up to 5%, but the pickens are a little slim at times for Investors, try VA or bank forclosures or short sales.

I work with a lot of investors in my area, Jason.  They are by far the best clients I have because each investor I can handle is often good for about 4 sides a year.  They buy a couple of properties a year, they sell a couple properties a year...it's all good.

If you are getting advice that HUDs are a pain, then you are not talking to the right people.  One thing that is CRITICAL is that you are working with a mortgage person who KNOWS how to get mortgage paperwork for HUDs lined out (if your investor is financing and not paying cash).  If you have THAT person in your circle, then HUDs are a piece of cake.  The forms are done online and print out with a checklist...now the HUD department is more demanding that the t's be crossed and the i's be dotted, but that is about it.

Then on top of that, the comission is well worth the effort at 5%.

  He's just another client.  Probably buying one house at a time.  If he is not brand new to the game, he  knows more than all of us.  You're his bird dog so get out there and fetch.  Once you find his comfort zone you'll have a great time.  I sold nine last year to a young investor.

We did HUDs VA and Bank Repos.  We spent 4 long days looking at most of the properties available and then settled into one part of town.

   I tried realty trac, foreclosure data and several others that I never want to hear from again without any luck.  Bank Repos were usually listed and going at retail value minus the repair costs.  After ninety days they will usually accept a reduced price offer.  All offers I made were 7k below asking price and on two I got inspectors to find what was wrong with the house that they missed.  On those I made full price offers but asked for repairs.  They were "as is" listings but every now and then you have to wake people up.  The asset managers have never seen the homes and pictures always look great.

   If your client is expecting unrealistic returns or even instant equity it is going to be tough.  My guy made between 12 and 40k per property, after repairs, on paper.  He was using short term financing and fully aware of closing costs etc.  He is also happy renting them and breaking even.  He will have a ton of money in 3-4 years.   good luck  you are going to be real busy for awhile.

I totally agree with Velda! I had a HUD drag out for 7 1/2 months! They expected me to play the game theyre way and then they brought us to a halt several times. We won the bid in June of 06 we closed feb 14th.07!!! Be careful of lenders. I had a pushy one who would get mad because I would cancel her inspections. She would make the appointments without any reagrd for the fact that the agent has to be on property everytime or it tanks the deal. Cross the t's and dot the I's.

You ask a lot of good questions.  The first you should be asking yourself is how is my "investor" client different than the "homeowner" client.  Wouldn’t you protect both their interest and get the best for each client?  One big difference is that you may have a ratified contract before your client sees the property for the first time with an investor or the terms may be different.

The rest of the questions you pose fall into the same thought process.  Most importantly, you don't have to disclose if your client is an investor.  Would you tell the sellers if your client was married or single?  

An important things to remember when writing a sales contract is "John Doe and/or assigns.  If you learn how to write contracts with the ability to assign the contract then as you build your network of investors if you have a ratified contract and the investor doesn't want to purchase, you have the ability to assign the contract to another investor with ease.  

Also, the other key to the transaction is a good LENDER.  Build a team so when you do deals you have the lender, title company, appraiser, etc. ready to go and know what to expect.

You can call me at (202) 207 - 4477 if you have more questions.  The next best thing to learn is read, watch tv shows, attend seminars, attend investor club meetings and find a mentor.

Good Luck!!!!  It sounds like you are committed to becoming successful with this niche.