Flip VIP Tip: Nate Andree Gives the Skinny on Wholesaling HUD Properties! (Interview)

Greetings from IL, guys and gals!

I’m here visiting family in the suburbs until tomorrow, and then I’m heading to the city for a few days to do some strategerizing.

Anyhoodle, a few days ago I interviewed my pal Nate Andree, who is one of the coaches in the Ask The Flip VIPs Coaching Program that I’m a part of….

Nate Andree(Nate and his lovely wife, Jen)

Nate’s an investor and wholesaler from Appleton, WI, and he’s made a killing wholesaling HUD properties over the last couple of years. ┬áSo, I asked him if he’d be willing to share some of his HUD knowledge with you guys, and he agreed!

Check out the interview below (it’s just under an hour long) to get the skinny on making cashola with HUD properties, including…

*Where to find HUD listings (you don’t need access to the MLS, btw)

*How to submit your offer

*Why making offers on HUDs is much easier than regular REOs

*Nate’s offer-making strategy

*What to tell your agent if they won’t submit your offer

And much more!

To listen in on the call, just click on the sack o’ cash below….(or if that doesn’t work, here’s the direct link…http://www.flipthiswholesaler.net/successstories/Nate.mp3 )

Nate Andree HUD call

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Resources mentioned in the call:

Find HUD properties in your area: http://www.hudhomestore.com/HudHome/Index.aspx

Find a HUD broker: http://www.hudhomestore.com/hud/BrokerSearch.aspx?sLanguage=Englis

Get a proof of funds letter: http://fundthiswholesaler.net/proof-of-funds/

Get transactional funding: http://fundthiswholesaler.net/

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Thanks again to Nate for doing the interview! Hope you guys enjoy it!

Alrighty then… I’m off to play cards with my Mom and have a couple glasses of vino. :)

P.S.
For those of you who aren’t already members of the Ask The Flip VIPs Coaching Program- you can sign up here.

Not only will you get access to me and Nate via monthly phone calls, but you’ll also get access to nine other coaches throughout the month!

P.P.S.
If you liked what you heard on the interview, click the Facebook Like button below!

Gracias! :)

  1. On June 22, 2011 at 3:05pm, nesie said...

    Steph, great interview! Are any contingencies necessary at all for HUD properties? Thanks

  2. On June 22, 2011 at 3:27pm, nesie said...

    Sorry, I forgot one more question. What contract I should use when selling HUD property to end buyer during closing? Thanks

  3. On June 22, 2011 at 7:49pm, Daniel Gaitan said...

    Awesome call!!!!! Thanks Steph for hosting and Nate for sharing this great information. I’m making some HUD offers starting tomorrow. Wish me luck.

  4. On June 23, 2011 at 6:50am, Nate Andree said...

    Nesie…..what contingencies are you referring to? When selling to your end buyer just use your State approved offer to purchase. A real estate lawyer or title company should have these and will give them to you for free or do a google search for your state and you should be all set.

    Daniel…..go get em!

    Nate

  5. On June 23, 2011 at 9:16pm, nesie said...

    Nate, I was talking about the contingencies on the HUD contract. Thanks

  6. On June 24, 2011 at 8:37am, Kevin Smith said...

    Thanks Steph and Nate you guys crushed it !!! Great call I learned a ton of stuff.

  7. On June 24, 2011 at 1:26pm, Marcus Costen said...

    Great call. I’ve listened to it 4 times in the car already. I’m licensed so I was wondering is it the same as putting in offers on the mls as far as dislosure? Does hud care if you put in your own offers as an agent representing yourself? Thanks
    Marcus Costen

  8. On June 24, 2011 at 1:37pm, Russ L said...

    Nate and Steph,
    That was an awsome call… if folks havent listen to it yet, they need too… really good stuff.
    @marcus, you can make offers on hud. I’m licensed also, it’s not a problem at all to be your own client and make your own offers….

    Blessings,
    Russ

  9. On June 24, 2011 at 2:30pm, Al Elliott said...

    is there any earnest money deposit involved in this

  10. On June 25, 2011 at 7:09am, Pete said...

    I was wondering the same thing as Al…….what about earnest money deposit? How do we handle that if we don’t have $1k, $5k, $10k of our own money to put up for EMD??
    BTW….great call!!

  11. On June 25, 2011 at 12:46pm, Marcus Costen said...

    Thanks Russ. Al and Pete..they mentioned in the call that properties $49,999 and under only require $500 emd and properties above that amount require $1000. It won’t go past that.

    Marcus C. Costen

  12. On June 25, 2011 at 6:03pm, vickie said...

    Hi, Steph and Nate this call was so so Great but I have a question when you contact a certify broker for hud property what do you tell them so they can join your team, also who pays the broker.

    • On July 08, 2011 at 7:51am, Stephani said...

      Hi Vickie,

      The seller is responsible for paying the real estate commissions.

      As far as what to say when approaching an agent- just let them know you are interested in purchasing properties off of the MLS and need an agent to submit offers for you. I don’t recommend telling them you’re planning on flipping the properties, though, as that usually leads to resistance.

      Good luck!
      Steph

  13. On June 25, 2011 at 7:05pm, larry rigdon said...

    how does pete glautier option houses if they are reo’s

    • On June 27, 2011 at 8:39am, Stephani said...

      I’m not sure what you’re referring to. As far as I know, you can’t option bank owned properties.

  14. On June 25, 2011 at 8:22pm, Pete said...

    But where do you get the $1000 EMD so I’m not putting up any of my money??

    • On June 27, 2011 at 8:40am, Stephani said...

      You’ll need to come up with the deposit on your own. Then when you find an end buyer, you’ll get an EMD from them. I recommend getting 2k from the end buyer.

      • On June 27, 2011 at 12:18pm, Pete said...

        So I do need cash! I guess I better start saving for the EMD……

  15. On June 26, 2011 at 12:00pm, Tamara said...

    Im thinking the earnest money should probably come from a buyer that you already have lined up, so I guess having buyers in mind when making the offers is a good thing, no? Thanks SO MUCH for this interview, its given me renewed drive and im ready to go kick some HUD arse! lol

    • On June 27, 2011 at 8:41am, Stephani said...

      Hi Tamara,

      Yes, it’s definitely a good idea to have buyers lined up ahead of time and know what they are looking for. That way when you get something under contract that fits their buying criteria, you can have it sold lickety-split. :)

  16. On June 27, 2011 at 9:17am, theresa said...

    Hi Stephanie,

    I purchased your Reo Flip e book and I have a question. Since I am not an agent I want to apply for an assiistant job with a Realtor. How do I approach the Agent?

    Thank You for your help…

    • On June 28, 2011 at 6:30am, Stephani said...

      Hi Theresa,

      It’s a lot easier if you already know someone who is licensed and can ask them (that’s what I did). I pretty much just asked them if I could be their assistant so I could get access to the MLS, and they said yes.

      Here’s an article that you might find helpful that addresses getting access to the MLS even if you are unlicensed…

      http://www.strugglinginvestor.com/2009/08/how-to-get-mls-access-without-your-license/

      Hope that helps!
      Steph

  17. On June 27, 2011 at 1:56pm, Brooks Conkle said...

    This is good stuff – great phone call! I can tell you that HUD offers get slung all over the place down here in Lower Alabama :)

  18. On June 27, 2011 at 3:54pm, John said...

    Hey Steph, how are you ? Enjoyed the mp3 by Nate about HUD wholesaling ! thanks, a million.
    Can’t wait to check out the gov website. Peace

  19. On June 28, 2011 at 7:54am, Tamara said...

    I have a question about working with a realtor to put these offers in. Wouldnt it be more advantageous to just work with the HUD listing agent and have them put in offers for you as wouldnt they get both sides of the commission that way so that way they are more than happy to put them in for you instead of having another realtor submit offers to the listing agent of the properties (yay run on sentences lol)?

  20. On June 28, 2011 at 12:14pm, Brooks Conkle said...

    Hey Tamara, it’s not really more advantageous because the offer system is really just ONE BIG COMPUTER. So you can just shoot them through any agent that you work well with. The offer goes straight to HUD, not the area list agent. BUT…..you CAN get inside knowledge about price drops, houses coming up, etc. if you get in good with the list agent — good luck!

  21. On June 28, 2011 at 12:28pm, christine gilliam said...

    Hi Steph. I have a question. You live in Florida, and so do I. Did you have to do any legal stuff when you started your wholesaling business? Like, did you have to get an occupational license (now called a tax receipt); file a fictitious name or get a tax ID#?
    I used to have a home business here in Florida and before I could get started I had to have all of these things first. Just wondered if the wholesaling business was different. Thanks, Christy

    • On June 29, 2011 at 9:01am, Stephani said...

      Hi Christine,

      I do business in the name of my LLC. I also had to get an occupational license as well as a tax receipt in order to open a bank account for my biz.

      It’s been quite some time since I set everything up, and things may have changed since then, so I would check with an attorney and/or tax advisor to make sure you have all of your ducks in a row.

      Hope that helps,
      Steph

  22. On June 29, 2011 at 9:54am, Rachel Baldwin said...

    Don’t know what happen to my original post. But I did enjoy the call and have listened to this call three times. I signed for free registeration at HUD site. In regards to flipping/wholesale HUDs, I thought you couldn’t flip/wholesale HUDs at all. I was told several years ago that you couldn’t do this, you have to have the property for more than a 1 year or 2. Please elaborate a bit more.

    • On July 08, 2011 at 7:42am, Stephani said...

      Hi Rachel,

      Like Nate said in the call- you can flip them the same day no problem. You can’t assign the contract, but you can still flip it via a double close.

      Take care,
      Steph

  23. On June 29, 2011 at 5:43pm, Wayne Radi said...

    Great call, thanks Nate and Steph. Since your call I have been studying any and all videos and articles on the HUD process. One thing that I have not been able to find is a list of the winning bids of recent HUD sales. I think that this would be a great way to gauge future bids. Do either of you have an idea as to where that may be available? Thanks again!

    • On July 08, 2011 at 7:46am, Stephani said...

      Hi Wayne,

      I think I remember seeing that info on the HUD site, but can’t remember where- sorry. :(

      If you have access to the MLS, you could also do a search on there for the properties to see what they sold for.

      Take care,
      Steph

  24. On July 01, 2011 at 10:55am, AnotherSteph said...

    Great interview, Steph. Our first house was a HUD house, so I know they can be great deals. Even though I have experience w/ HUD, I learned a lot on this call.

    Happy 4th!
    Steph

  25. On July 01, 2011 at 10:58am, chelleigh said...

    Hi,
    that was a great call, however i know nate said that you don’t need earnest money when making the offer, when i approached the agent they said that a deposit was needed when the the offer is initially submitted. Is that always the case or is my agent wrong?
    thanks!

    • On July 08, 2011 at 7:47am, Stephani said...

      I think it probably depends on the agent.

      I’ve never made offers on HUDs, but when I make offers on regular REO properties, I usually don’t need to cough up the deposit until the offer has been accepted.

  26. On July 04, 2011 at 12:47pm, Hank said...

    Hey Steph, it’s been a long time. I really like the blog and YT channel. It’s very professional. I tried to send you an email at the old earthlink address but it bounced back. After an extended family crisis, I’m back in the RE game again. I’m with a Pinellas group that does 15+ deals a month. I’m super busy and loving it.

    • On July 08, 2011 at 7:53am, Stephani said...

      Holy crap- Hi Hank!!

      Great to hear that you’re back in the game! I just got your other email and will get back to you later today so we can catch up.

      Talk to you soon,
      Steph

  27. On July 05, 2011 at 7:07am, Matt Kearney said...

    Nice call Steph and Nate.

    I’m getting registered as a HUD selling broker so I can fire out offers on some of these properties!!!

  28. On July 05, 2011 at 10:56am, Ms. Winni said...

    As usual, such great content….for free!!! Thanks Steph and Nate! Not a Flip VIP member, but I’m seriously considering joining now.

  29. On July 13, 2011 at 7:09pm, Taquila said...

    Great interview Steph and Nate! I am returning back to the world of real estate after two new additions to my family! Just a quick question… I read that you only need $100 EMD on HUD homes is that not true?

    • On July 28, 2011 at 5:01pm, Stephani said...

      Hi Taquila,

      It’s $500 for properties under 50k, and $1,000 for properties over 50k.

      Take care,
      Steph

  30. On July 13, 2011 at 8:20pm, Carey_PA said...

    Great interview Steph and Nate! HI NATEEEE (long time no talk.)

    Hey….I think Jen looks a lil bit like you Steph…..what do you think? maybe just a lil??

  31. On July 25, 2011 at 6:32pm, Ron said...

    This was very informative! What wasn’t addressed is whether or not you MUST disclose to HUD in writing your intention to flip the property in a back-to-back closing?

    • On July 28, 2011 at 4:40pm, Stephani said...

      Hi Ron,

      No, you don’t need to disclose that you are flipping the property.

      Take care,
      Steph

  32. On August 07, 2011 at 10:49am, Barbara Rae said...

    Hi Steph, (BTW I love the girl power here!)
    I am brand new at this – know literally nothing. Would love to do wholesaling. Had a secret desire to do this for over 20 years.. Divorced now and can follow up on that dream.
    Can you distinguish for me the detailed differences between ‘Double Escrow & Assignment”???
    It sounds so much alike and yet, there seems to be a difference and it is confusing me.
    Thanks a bunch!
    Barbara Rae

  33. On August 07, 2011 at 2:06pm, zack said...

    Im new to wholesaling and would like to know if you are dealing with purchasing fixer uppers properties that needs alot of rehabbing that is maybe worth 10,20,30 or 40k purchased . what’s the lease amount I can charge for assignment of contract ? Can you really make any profit from this type of low purchase price properties ?

    • On August 10, 2011 at 8:41am, Stephani said...

      Hi Zack,

      Yes, you can make money from cheap junkers if you are buying them right. The key is to find out what the active investors are paying for those kind of properties and then get them under contract at a lower price. The lower price you get them under contract for, the more of an assignment fee you will make. For example, say you find a cash buyer who is willing to pay up to 40k for a 3/2 in a particular neighborhood. You can then go look for properties that fit his criteria, put them under contract for less than 40k, and then assign the contract to him for the difference.

      Hope that helps!
      Steph

  34. On August 12, 2011 at 11:46am, Christy said...

    Hi Steph. I’d like to know which contract (assignment,option to purchase,or the standard sale and agreement) you like to use the most and why? Thanks, Christy

    • On August 18, 2011 at 4:19pm, Stephani said...

      Hi Christy,

      Different contracts are used in different situations, so it really depends on the deal.

      You can get copies of the contracts I use along with videos that explain how to fill them out up in the right corner of the blog. That should shed some light on which contract to use in which situation.

      Hope that helps,
      Steph

  35. On August 20, 2011 at 7:55pm, zack said...

    If I find a motivated seller whoes house is fair marketed at 100k and I can get the seller to agree to sell it for 50k under contract. To be honest, how much should I sell my assignment of contract to a investor to keep that investor interested in buying more deals that I find ? How do I work a deal like this to a investor ?

    • On August 22, 2011 at 2:37pm, Stephani said...

      Hi Zack,

      You need to do some market research to find out how much the investors in your area are paying for similar properties. You want to make sure the price is low enough so that there is enough profit in the deal to make it attractive to the end buyer.

      As far as the mechanics of the deal goes…you would put the property under contract using a purchase and sale agreement that would be signed by you and the seller, then once you find an end buyer you would use an assignment of contract agreement to assign your rights in the contract over to them.

      Hope that helps!
      Steph

  36. On August 28, 2011 at 7:20pm, John said...

    Hi Steph

    I was wondering, how would a wholesaler go about coming up with a offer on a property that has liens on it?

  37. On August 30, 2011 at 8:28pm, Juanita said...

    Thanks Steph and Nate! This call was awesome and very helpful, I learned a lot. I am ready to make some offers on HUD properties now. Didn’t know it was that simple. Hope I don’t run into any problems. Thanks again!

  38. On September 04, 2011 at 8:44am, Crystal Salton said...

    EARNEST MONEY REQUIREMENTS: The earnest money deposit for owner occupant and investor contracts is $500 when the purchase price is $50,000 and under, and $1,000 when the purchase is $50,001 and over. For vacant lots, the earnest money deposit is 50% of the list price.

    Payee: The certified funds (cashier’s check or money order) should be made payble to “HUD”
    (Housing and Urban Development)

    REMINDER: Once your bid has been accepted, you MUST submit the original earnest money funds (NOT a copy of check) w/the Sales Contract Package to to PEMCO “WITHIN 48 hours”, Your contract will be REJECTED without the funds.

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