Denver HUD Homes - Making Successful Investor Bids
We've been very successful helping our investor clients win bids on Denver HUD homes. However, we've heard from several of our newer clients, that attempts they have made in the past didn't go as smoothly. Hopefully this article can help you as you move forward making bids on HUD properties.
The most important step in the entire process is finding out about Denver HUD homes the very first day they are listed on the market. As with all Denver bank owned homes, there are hundreds of potential bidders on any distressed property, and finding out about the listing before your competition is crucial. You'll need to have an agent set you up on a daily email alert that will send you all new Denver HUD homes first thing every morning.
Once you receive your emailed list of potential homes, you need to run your numbers and see if you can fix up the property and sell or rent it at a profit. Obviously this will only be an approximation, as you will not have seen the home yet. Make sure your agent provides you accurate sales data for the area and run a variety of "what ifs" for possible rental income or sales prices.
After you have run your numbers and have eliminated homes that don't meet your criteria, you need to send your list of potential investments to your agent. Because Denver HUD homes are only opened to owner occupants the first week, as an investor, you will not be allowed to place a bid right away. However, your agent can set you up to be alerted the morning these properties area available for investor bids.
Once you are alerted that a previously identified HUD home is opened to investor bidding, you need to move extremely quickly. Making sure you're bid is the first bid on the home can give you an advantage over other investors bidding on Denver HUD homes. Many investors wait a day or two to place their bids on Denver bank owned homes. If you can get your offer in the first morning the home is available, you'll have a huge advantage.
To streamline the bidding process, make sure your agent does the following:
1.) You'll need a template contract drawn up with the correct verbiage and language needed for Denver HUD homes.
2.) Make sure your agent has all the necessary documents showing your business entity, financial capabilities etc. HUD will need to see these documents with your contract.
3.) Make sure your agent is following up with the HUD contact. If there are additional bids on the home, you'll want to know about it and adjust yours accordingly. There is nothing worse than losing a HUD bid because you came in a few hundred dollars too low on your bids when you would have raise your bid much higher if you had only known.
Finally, make sure your agent is registered with HUD to bid on Denver HUD Homes. If your agent isn't in the HUD system, your research and work will mean nothing. If you've never worked with the agent before, ask for their HUD number or call HUD yourself to verify they can place HUD bids.
There are many deals to be found on Denver HUD homes, but you need to have a plan and move quickly. Good luck!
About the Author:
The Brian Petrelli Team has over 50 years combined experience selling Denver HUD homes. Whether you're looking for your first home or your next investment, use our expertise, free email alerts and free services to find your next HUD Home.
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