We’re very excited to announce that The Brokery has recently been awarded a major servicer contract by our new partner Sage Acquisitions and The Department of Housing and Urban Development (HUD). We are now a premier marketing partner for HUD Homes in Middle Georgia. Since our award almost a month ago, we’ve been assigned 7 new listings to market and sell. Since investment property is a large part of what we do here at The Brokery, we wanted to give you the top 5 Reasons now is the time to buy a HUD Home! What is a HUD Home?... Glad you asked! HUD homes are properties that were financed by FHA (Federal Housing Authority) prior to going into default, and thus being foreclosed on by Uncle Sam. Once foreclosed, they go through a rigorous process where they are made ready for market, often including cleaning, securing, and bringing to some level of minimum standard. Often, they are priced well below typical resales in the area but are offered with no warranties or guarantees about the condition. 5 Reasons to Invest in HUD Owned Property 1) It’s so easy to bid! - It literally takes about 2 to 3 minutes to bid on a HUD owned property. You will have to go through a State Licensed Real Estate Brokerage who has a HUD registered NAID number (like THE BROKERY), but the process is super easy. No need to write a check for earnest money until after you’re notified of your winning bid! 2) For Owner Occupants - there is a huge opportunity as most HUD offered properties have a one week period whereby only owner-occupants, state or federal agencies and nonprofits can bid. Also, for owner occupants, often a remodeling or repair allowance is offered on top of an already discounted sales price! 3) For Investors - Owning investment properties is good for many reasons including decreasing tax liabilities, creating a steady income stream, or building wealth. Purchasing HUD homes almost always assures that you begin your investment with equity. Often HUD homes can be rented well in excess of an investor's cost of capital, sometimes being able to have paid for themselves within a few years of purchase! 4) Financing is Readily Available - Contrary to popular opinion, many HUD homes are immediately habitable, and thus, financeable by an FHA mortgage (for owner occupants). There is an abundance of banking institutions ready and happy to finance investor purchase as well. Often, an investor can get enough to purchase and renovate the property with very little money down. 5) A Post-Retirement Hobby - Owning rental property doesn’t have to be a job, but it can be if you want it to. Think about this:
- Build your Inventory - Use a network of real estate pros to help you vet, acquire, finance, lease, and manage a growing inventory of property. Utilizing a small team of “real estate partners”, one can build quite a bit of equity very manageably and with low risk. ((Ahem… “We can help here!!))
- Learn the business from your team - During your time of acquiring, learn the business by asking questions of the pros. What are common repairs, issues, and challenges that a property owner faces daily.
- Retire - Owning property can be a great way to insure that you have a retirement.
- Work on Your Own Properties - many people across our great country enjoy working on their own properties as a hobby. If you own 10 or more rentals, you know that you have some kind of expense almost monthly with property maintenance. If you learn to do just a few things that are regularly required, you can save money and enjoy touching and feeling your investments working for you on a daily basis. Want to go to the beach for a month? No problem. Just hire it out for a month and go! But, you being the owner of your portfolio get to do exactly what you want… which is the goal of retirement anyways!