HUD Properties Deal Type
Since its inception, MyHouseDeals, at its core, is a marketplace for investors to find investment properties off of the beaten path at deep discounts. All of our listed properties are meant to be solid investment opportunities for our members, so investors can do what they do best: close deals and get paid. For years, we’ve offered four property types: wholesale deals, investor-ready foreclosures, motivated seller leads, and motivated MLS deals. In 2023, we introduced a new property type: HUD properties. What is a HUD property, you ask?
Let’s get to it.
What Are HUD Properties?
HUD, or US Department of Housing and Urban Development, property deals are foreclosed properties that had an FHA mortgage and are now owned and being sold by HUD. Each property has a listing agent. We’ve hand-picked these deals for MyHouseDeals tribe members based on a few different criteria.
We do the legwork for you, so you can find these investor-perfect deals in the markets that are attractive to you across the country. These properties are suited for real estate investors and fit in well with the other property types on our site because of the profit potential they offer.
HUD Properties vs. Other Deals
Now that we’ve explained what a HUD property is, let’s take a look at how these deals differ from other deals on our site. Let’s look at the Houston market area as an example.
As you look at our market search page, notice the differences between each of our property types.
Wholesale Deals
Investor-Ready Foreclosures
HUD Properties
HUD properties stand out because of the profit potential they offer. The HUD sells these properties at discounted prices, often below market value, making them attractive to investors looking for bargains.
Where Are HUD Properties?
We’re expanding the HUD property inventory on MyHouseDeals on an ongoing basis. At the moment, there are deals available in Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Kansas, Maryland, Montana, New Mexico, North Carolina, Tennessee, and Texas.
With that being said, new HUD properties are being added to the site every week. You also have access to the largest list of wholesale deals, motivated seller leads, motivated MLS deals, and investor-ready foreclosures in the nation.
HUD properties are our way of making an even larger number of properties available to our members.
Why HUD Properties Are Important to YOU
Beyond high profit potential, HUD properties offer a host of benefits. But first, to recap, homes have gone through the foreclosure process and are vacant. Properties are sold via the HUD online bidding process. This means that it’s similar to eBay—properties are listed for sale and there is an open bidding period. You can submit any bid you would like. Make sure the numbers work for you and for your budget. To help you in this area, you have access to interior and exterior photos of the property.
A prime benefit of HUD properties is that they offer a diverse inventory of property types. You will find single-family homes, townhomes, and condos, providing investors with various investment opportunities.
The number one obstacle to getting a deal done is funding. This is not something that should keep you up at night with a HUD property. Investors can access FHA-insured loans to purchase a HUD property, with lower down payment requirements and competitive interest rates.
Going back to profit potential, another hallmark of HUD properties is that they often require repairs or renovations, which create opportunities to add value. And in turn, increase the property’s worth.
If we take a look at market conditions, the average price of a single-family home continues to rise. As new records are set, homes have become unaffordable for first-time homebuyers. That means that the demand for affordable housing is at an all-time high, which creates an opportunity for long-term rental income and property appreciation.
One of the reasons we recently introduced HUD properties is because they are diamonds in the rough. HUD properties are sometimes overlooked by traditional homebuyers, leading to less competition among investors.
Circling back to the online bidding process, since it happens online, you can participate from anywhere. This means that you do not have to focus on properties in your immediate vicinity. You can pick and choose the properties that meet your criteria, whether they are next door or thousands of miles away.
Speaking of location, some HUD properties are in designated opportunity zones which provide additional tax benefits for investors looking to revitalize economically distressed areas.
And last but not least, HUD properties offer multiple exit strategies. Depending on the property in question, you will see both high-end homes in nice areas as well as properties that are better suited for long-term rental properties for cashflow.
What’s the Catch?
While HUD properties offer a long list of attractive benefits, they aren’t for everyone. For the sake of completeness, let’s cover a couple of potential downsides.
You must conduct research and check for new deals frequently. We have taken this potential roadblock out of the equation. We do the research for you so all you have to do is check the site to catch new potential deals. You’ll never miss out on a potential great wholesale deal, fix and flip, or rental property.
As part of the bidding process, you must submit your bid through a HUD-certified agent. This adds an extra layer to the process but the potential payoff is high.
Lastly, some properties are reserved for owner-occupants and are not available to investor-buyers. Not to fear here too: we filter these properties out so you only see the ones that are available to investors.
Make Your Next Deal a HUD Property
Are you ready to jump in and capitalize on this exciting new property type? A lot of HUD properties are currently on the site, and more are added weekly. Take a look and see if MyHouseDeals has a HUD property that meets your investment goals.
If you’d like to see more HUD properties in your area, let us know and we’ll get to work immediately!
Happy, and profitable, investing!
