Tuesday, March 17, 2020

The Foreclosure, Hud, Flood Real Estate Deal #22



Bill shares a story of an investor who bought a property in a flood zone and was unable to get financing.

The story has a fairytale ending that you won't want to miss.

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Bill Fairman (00:05):
We had a guy that bought a a HUD home, which means they got
it out of foreclosure through FHA and he found out that he's going to hit,
cause he was gonna. He's going to borrow the money from us. We found out and it
was in a flood zone and we're not only coast in Charlotte. There's not too many
flood zones, but it was close to this Creek that apparently had some flood
issues and he called the city to see if they had a, what they call an elevation
survey so he could get flood insurance and then the city they, they said they
didn't know. They get back. The city calls me back and says like, my manager
wants to talk to you again. It says, first of all, how'd you get this house? He
says, well, I bought it in foreclosure through the HUD store. He said, really?
He says, we've been trying to buy this house for two years from HUD and they
won't sell it to us because they're making a Greenway out of all of it and
they're demolishing all the houses along there so they don't have to continue
to worry about the flooding. So they were turning into a park and he said,
well, how much you want for it? And um, he says, well, I just bought it. He
says, well this is what we offered. And he goes, okay. Sold.
Bill Fairman (01:28):
So he had the thing like 10 minutes, he made $15,000 and
then he sold Wendy and I, all the appliances that were in there, they were all
stainless steel. They were just replaced. We even got the H vac out of it and
used it in other houses that we had. We paid $800 for the GE gas stove side by
side, you know, refrigerator freezer and the heating and air conditioning
system. Oh. And the dishwasher, all, all stainless steel. They'd only been in
the house a few months because they had it re rehabbed after the last flood.
And so it turned out that he was going to have a house. He couldn't get flood
insurance on that he's already purchased and now he can't get a loan on it
because he can't get flood insurance. And in the meantime, the city bought it
from him for more than he paid for it and he was able to sell the appliances
fast. That's a success story.

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Podcast:
http://thealternativeinvestor.libsyn.com/the-foreclosure-hud-flood-real-estate-deal 
Visit:
 https://redirect.viperseotools.com/r/iframe?key=Pkbn9kpWlAOJ


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