Wholesaling HUD Homes
This is a continuation of “The Great Escape” interview with Eric Thiele. Eric is working with Sean Terry and Flip2Freedom.com to learn how to start up a successful wholesaling business. In this section, Sean and Eric discuss bidding and the difficulties that could arise.
Eric: So I’m at that point, and Monday I put in a bid, and I didn’t get accepted. And Tuesday I found out the bid that they had accepted fell through, so I learned that part of their system is, if you submit a bid and it’s not accepted, they do save your bid. They do save your contact information, so that if their primary bid that they did accept falls through, the next highest bid in line suddenly becomes alive again and now you won the bid. So that’s what happened to me this week.
I had one bid accepted on a property here in Texas, and I’m now going through the process of getting my proof of funds letter submitted. I want to point out to other students that, what I’m learning is, some of what Sean’s experience has been in the Arizona marketplace is different than what I’m experiencing in Texas.
For example, in Arizona, apparently HUD gives you 45 days before closing. Here in Texas, it’s only 30 days. In Arizona, a proof of funds letter from outfits, such as Coastal-funding.com is quite acceptable. Here in Texas, it’s not acceptable. They actually want to see a bank statement from someone who is offering to put up the money for a transaction. So, I’m having to solve that problem, which I’m working on. There’s an individual out on the World Wide Web, Cameron Dunlap is the guy I’m going after. He actually has his own bank account. It’s not through some bank, it’s his money. And it’s going to not only provide a proof of funds letter, but one that’s backed with an account statement that shows that he has millions of dollars on account, and HUD shouldn’t worry about it. It’s kind of interesting that there are marginal differences with respect to how a program like HUD is administrated. We have to learn how to recognize those situations and power through it.
Sean: Yeah, now, I can tell you . . .
Eric: As Sean likes to say, “Boom, we’re going to blow it up and find a way through.” So that’s what I’m doing right now.
Sean: Right, right. Well, I think the first thing is that if you come up with a situation, call me. Because that situation’s already been solved, and so to go out and waste time and to go out and search the web and do whatever is just a waste of time. So, we’ve already ran across that, because different asset managers will accept different proof of funds letters. So, the solution for that is continue to use the proof of funds letter, but instead say, listen, we’re going cash, we’re going financing.
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