Buying a government owned home can cost you as an investor! But, how could that be? They are selling for so cheap and I know I can repair and make a hefty profit on it in a short amount of time. But, what you don’t see is the fine print on that real estate contract and if you have an agent that hasn’t told you about the fine print, they could be costing you thousands in profits!
You see, those deals aren’t always the deals they look to be. One of the things the government tries to do is to sell to someone who wants to be an owner occupant first and if that doesn’t work, then the open it up to investors.
Now, depending on the type of investor you are, it could be potentially dangerous to your pocket book to buy one of these government owned / HUD homes. (Click on link to get your free list of Government owned / HUD homes for free) Why do you ask? Well, if you are buying one of these homes for the purpose of renting or doing a lease option, then these are perfectly alright to buy. But, if you are looking to flip, be very, very careful.
You see, the government doesn’t want you to make too much money? (Don’t ask me why, you think they would love the tax revenue) But, in their contracts it usually has something to the effect that you can’t sell said property for more than a certain amount of money in a certain amount of time. So, even if you put in $50,000 worth of upgrades, add extra bedrooms, you still may not be able to sell it for more than $20,000 than you bought it for. (See, how that could cost you???)
So, when buying Government owned / HUD homes for investment purposes, be very careful and read the fine print!! Call the Friendly Home Team today and we will connect you with our investment team who specialize in helping investors find the right properties for them and getting them started on the right foot to profits.
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